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We get numerous inquiries from company drivers and non-truckers about going into the trucking business; i.e. becoming an owner-operator.

Once you make the decision to go into the trucking business and you have never been involved in it, it might be a good idea to become a contract driver for another carrier. If you don't like trucking, you can get out without making the large investment of buying your own rig. You can also lease your rig but still be obliged to complete the contract.

When you have trucking experience under your belt and your goal is to be self-employed, a practical approach is to start out as an owner-operator leased on with a carrier. This will give you experience handling your own business matters. Once you're comfortable as an owner-operator running your own business, handling the stress of decision making and the responsibility of self-employment, you may feel ready to get out on your own and acquire your own authority. Remember, when you have your own authority you have full control of the business and its responsibilities.

Following is a list of several important things you need to consider before going into business:

1. Are you unhappy working for others and want to increase your income?
2. Are you willing to take risks? You are taking a much bigger risk running your own business than being a company driver.
3. Are you going to be able to make the tough decisions necessary in running a business? Can you make decisions under pressure?
4. Are you willing to give up possible benefits of working as a company driver such as health care, 401K, guaranteed vacations and sick pay?
5. Are you willing to put in extra hours that go along with running your own business?
6. Are you sales oriented? Will you be able to bring in the needed business?
7. Are you capable of handling paperwork and record keeping? If not, are you willing to hire someone to do it?

Choosing the right advisors will help you avoid a large number of problems and costly mistakes as you build and maintain the financial foundation of your successful trucking business. They can guide you to sound business decisions.

Project what gross income you would have to achieve each year and deduct your estimated expenses to give you your expected net income. Then figure out your living expenses and desired retirement savings. Compare that to your expected net income to see if it's enough. Can you maintain that net income or must you increase it? Can you increase your gross income? Set a goal and make sure it is reachable.

As an independent owner-operator, you will be responsible not only for the production of income, but also for maintaining the books and records and staying on top of your income and self-employment taxes. You will have to make periodic quarterly estimated tax payments in a timely fashion throughout the year.

You must satisfy yourself that the desired results are obtainable. If they are not, don't go into business; remain a company driver.

Everyone's financial situation is different. This article does not give and is not intended to give specific accounting and/or tax advice. Please consult with your own tax or accounting professional.

This article has been presented by PBS Tax & Bookkeeping Service, a company that has been providing income tax and bookkeeping services to the trucking industry for over a quarter century. Contributions to this article were made by Shasta May, Director Business Development for PBS. If you would like further information, please contact us at 800-697-5153. See our website at www.pbstax.com.