• Last Updated:
  • Jul 14th, 2018 8:55 am
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[OP]
Member
Jan 7, 2010
395 posts
7 upvotes
Brampton

Potential Biz startup help

Hey RFD,

I need some advice, info with a potential business start up. I have a friend who has a moving company with about 10 trucks in it. He took over the company from family after it was already setup and established for more than 10 years. On weekends, he has been rejecting and turning down business for people looking for movers as he just doesnt have enough trucks nor personnel. (similiar to 2 men and a truck setup)

He has suggested to me, I should quit by 9-5 and purchase a moving truck and he will be able to send me jobs. He send he can cut me a cheque, and have everything above board no problem and I would easily make more money and potentially a better home life with this change.

I am seriously interested in this, but wondering would it be better/smarter for me to create my own company and basically be subcontracted for the move jobs. What type of expenses would i be looking at in business registration fees? How does auto insurance for the truck compare business use vs personal use?

My friend said he is ok to do either option for me, sub contracting, or I can even just sign up and be an employee for his company. Would the tax benefits of having my own company and being able to write off against the company truck expenses and etc be worth it to register as a company. Or is it just less headaches an easier to just be an employee in his company?

Sorry for the many questions. I appreciate any feedback.
7 replies
Deal Fanatic
User avatar
Mar 23, 2008
6409 posts
3513 upvotes
Edmonton
Well, if you start your own company, you can also hire your own employees and get even more trucks. Thereby making money off other people's sweat. But then you have all the drawbacks that he has, which is finding reliable people etc. to work for you.

You'll also need to look at liability insurance and getting bonding, I suspect. Your actual vehicle insurance might not be much different than your personal policy, but you will need insurance for the client's stuff that you're moving. Registering for a business is relatively cheap.

Basically, less headaches being an employee. But less money too. Unless you gather together some numbers, you won't be able to make an informed decision.

C
[OP]
Member
Jan 7, 2010
395 posts
7 upvotes
Brampton
CNeufeld wrote:
Jul 12th, 2018 4:19 pm
Well, if you start your own company, you can also hire your own employees and get even more trucks. Thereby making money off other people's sweat. But then you have all the drawbacks that he has, which is finding reliable people etc. to work for you.

You'll also need to look at liability insurance and getting bonding, I suspect. Your actual vehicle insurance might not be much different than your personal policy, but you will need insurance for the client's stuff that you're moving. Registering for a business is relatively cheap.

Basically, less headaches being an employee. But less money too. Unless you gather together some numbers, you won't be able to make an informed decision.

C
Thank you for the insightful reply.

In regards to the liability insurance. That would be just cover the items being delivered in the truck and being moved correct? It would be just me and my brother working in the truck. Would i need insurance to cover my brother from injury or anything?

looking to do this as clean, simple and basic as possible. Hoping I won't need an accountant to setup as trying to keep costs down at first while still small.
Deal Fanatic
User avatar
Mar 23, 2008
6409 posts
3513 upvotes
Edmonton
HiClass wrote:
Jul 12th, 2018 4:39 pm
Thank you for the insightful reply.

In regards to the liability insurance. That would be just cover the items being delivered in the truck and being moved correct? It would be just me and my brother working in the truck. Would i need insurance to cover my brother from injury or anything?

looking to do this as clean, simple and basic as possible. Hoping I won't need an accountant to setup as trying to keep costs down at first while still small.
Yeah, you'd be looking at workman's comp, I'm pretty sure.

Your buddy should be able to give you a pretty good idea of what costs HE has on his setup...

C
[OP]
Member
Jan 7, 2010
395 posts
7 upvotes
Brampton
I know a lot of answers I CNA get from my friend but I'm trying to get as much on my own just incase he tries to steer me in the direction that works best for him.
Jr. Member
Apr 8, 2017
148 posts
32 upvotes
Why so you need to quit your 9-5 if nost of the moving work is done on weekends?
[OP]
Member
Jan 7, 2010
395 posts
7 upvotes
Brampton
Tired of working a dead end job and not being able to spend more time with my family.

My 9-5 has no light in the end of the tunnel. Make just enough money to barely survive but not enoughto be worry free or to thrive. And then living in fear every week that at anytime you can be fired and replaced like a piece of trash is not really a way to life.
Deal Guru
Aug 2, 2010
12472 posts
3035 upvotes
Here 'n There
HiClass wrote:
Jul 13th, 2018 1:33 am
Tired of working a dead end job and not being able to spend more time with my family.

My 9-5 has no light in the end of the tunnel. Make just enough money to barely survive but not enoughto be worry free or to thrive. And then living in fear every week that at anytime you can be fired and replaced like a piece of trash is not really a way to life.
To be fooled that running your own business is any panacea. Most likely the risks and time demands are even greater, among other things.

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