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Legal entity registration and some other thoughts on FedEx Contractor Business
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<blockquote data-quote="bacha29" data-source="post: 2723023" data-attributes="member: 58386"><p>I was a Day 1 contractor for 23 years going back to the early years of Roadway Package System. You can game the tax code all you want but you still have come to back to the real world of trucking when you go into the terminal in the morning and what do you find? Flat tires, dead batteries, busted springs, the floor covered with engine oil, transmission oil, anti freeze, busted windshields, cracked heads, holes on radiators etc. Oh and that guy who is supposed to be there to drive the truck? Well, he's off sick too hung over to drive or he got in a bar fight and is in the ER with a busted jaw and teeth knocked out or he's in jail for selling for selling drugs on the side, receiving stolen property or for beating up his old lady the night before or he gets called in some morning for a random and he fails it.So what do you do? Well, that's your so called manager's job to figure that out. But wait, he quit two days ago. Now your standard UPS driver gets $34 an hour full benefits including an employer paid healthcare plan and a defined benefit pension. Yet you are completely confident that you will always have a fully trained and route familiar person there every day who you will demand that he not just match what that UPS driver does in a day but to exceed it and do it for a small fraction of what the UPS driver gets in wages and zero benefits. Why because that UPS drivers daily compensation will exceed what that entire route of yours will GROSS in a day.You can game the tax code all you want but your precious little bottom line still comes down to your ability to find people who will go out there and deliver top of the scale performance for bottom of the scale money and do it on a consistent daily basis for an extended period of time. If you expect them to be perceived as professionals perform as professionals, behave as professionals, project an image as professionals then they will EXPECT TO BE PAID AS PROFESSIONALS not like fast food workers. If you refuse to do that because your bottom line is all that matters then if this endeavor turns out to be a nightmare you will have nobody to blame but yourself.</p></blockquote><p></p>
[QUOTE="bacha29, post: 2723023, member: 58386"] I was a Day 1 contractor for 23 years going back to the early years of Roadway Package System. You can game the tax code all you want but you still have come to back to the real world of trucking when you go into the terminal in the morning and what do you find? Flat tires, dead batteries, busted springs, the floor covered with engine oil, transmission oil, anti freeze, busted windshields, cracked heads, holes on radiators etc. Oh and that guy who is supposed to be there to drive the truck? Well, he's off sick too hung over to drive or he got in a bar fight and is in the ER with a busted jaw and teeth knocked out or he's in jail for selling for selling drugs on the side, receiving stolen property or for beating up his old lady the night before or he gets called in some morning for a random and he fails it.So what do you do? Well, that's your so called manager's job to figure that out. But wait, he quit two days ago. Now your standard UPS driver gets $34 an hour full benefits including an employer paid healthcare plan and a defined benefit pension. Yet you are completely confident that you will always have a fully trained and route familiar person there every day who you will demand that he not just match what that UPS driver does in a day but to exceed it and do it for a small fraction of what the UPS driver gets in wages and zero benefits. Why because that UPS drivers daily compensation will exceed what that entire route of yours will GROSS in a day.You can game the tax code all you want but your precious little bottom line still comes down to your ability to find people who will go out there and deliver top of the scale performance for bottom of the scale money and do it on a consistent daily basis for an extended period of time. If you expect them to be perceived as professionals perform as professionals, behave as professionals, project an image as professionals then they will EXPECT TO BE PAID AS PROFESSIONALS not like fast food workers. If you refuse to do that because your bottom line is all that matters then if this endeavor turns out to be a nightmare you will have nobody to blame but yourself. [/QUOTE]
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