With trucks delivering 70% of all cargo in the U.S., and e-commerce on the rise, there’s significant profit potential in the logistics industry.
- Sole proprietorship
A single person owns and operates the entire company, as well as accepts all its legal responsibilities. A sole proprietorship is considered the easiest way to structure a company.
Partners are either general or limited. A limited partnership involves more legal paperwork but offers more protection. A general partnership is essentially a sole proprietorship shared between two or more people.
A limited liability company (LLC) is usually a separate entity from the owners. An LLC offers more legal protection than a sole proprietorship or partnership.
Corporations consist of stockholders who own the company, directors who manage it and officers who run its everyday operations. Corporations are the most complicated organization in terms of legal work but offer the highest amount of protection.
An employee stock ownership plan (ESOP) provides fluidity and security. An ESOP provides your employees with a stake in the company.
- Leasing equipment
By leasing, you can start using your equipment without paying the full price for it. You make monthly payments and the leasing company covers any maintenance or repair costs for the trucks. Not having to cover insurance costs will save you money upfront, but you don’t own your trucks, so the leasing company can enforce its own rules over their use.
- Buying equipment
Buying your trucks outright will be more expensive upfront, but the trucks can be leveraged by selling them or renting them out. Throughout the ownership of the truck, any modifications can be made — though the cost, as well as any repairs, falls on the owner.