Authority Pros & Cons

[simon999]

(05-31-2018 )snailexpress Wrote:  

(05-31-2018 )AHMLLC Wrote:  What are some pros and cons of having your own authority? My inexperienced trucker buddy believes owning your own authority is the devil(because he cant afford it lol) and my buddy who is established said its the best decision he's ever made.

what are your thoughts?
How much does it cost to have your own authority in your state?

If you are organized enough to do paperwork and keep records and required documentation, work with brokers or direct customers go with own authority.
Expenses are
DOT registration is about 300
Insurance
Truck and trailer IRP
IFTA
Annual safety emission inspection
Drag consortium annually
Taxes
Some other crap mandatory required by FMCSA
Local business registration fee.
Load board
Office equipment.
I was in lease short period about 18 months then went on my own.
Result is less driving and fuel expenses more profit. Dispatchers don't care about your profit at all and will send you 400 miles deadhead to make a penny profit.

I was leased several years to the few carriers. Last one I worked with, all good paying loads always for company drivers. All the left overs - for 0/0. I opened own mc this year and I already can tell that I drive less miles and make more profit. First three to six months are hard because some brokers wont give loads. But after that you good.
Yes its more paperwork. Im doing my own ifta, invoicing to brokers, finding my loads. Yes its more work, but eventually more profit.
And I agree new o/o in this bussiness should be trained on wheels few years. If new o/o jump to his own authority not understanding rates and lanes whete to go can be out off bussiness soon. Plus need to have solid $ in the bank to start this.