Trucking: Trucking partnership, bob stephens, nickle and dime

Question
Hi,  
A friend's truck is in the shop needing repairs.  Been so long, insurance has lapsed.  We're looking at doing a partnership w/ liabilities detailed etc.  The idea is for me to fund the repair, pay for the insurance, and use my resources through another trucking broker friend to set up the runs.  I'll also be using getloaded and other websites to set up runs.  We will run from CA to anywhere.  He use to make runs from CA to MA quite often but would come back dead.  So I'd be responsible for helping find a load to pickup somewhere on the way back to CA.  No

My question:  Do you think a 22% cut for me and 78% cut for him is fair and reasonable?  This would be of profits after $$ allocated for gas, food, maintenance, etc.

Also, is it advisable to form a LLC prior to taking on this venture?  Should I set myself up as a 'dispatcher'...if so, how do I do that?

thanks.  I've spent several hours reading the material on this website and it has been very valuable.  

Answer
Hi PJ.

That cut sounds like it is fair.  Only you two know for sure because there are a lot of areas that a truck will "nickle and dime" you.  As long as you each know who pays for what down to the last purchase, you'll be fine.  That's where I see most partnerships fail.  When the next breakdown occurs, each partner is looking at the other for money.  Write EVERYTHING down!  Who pays for what.

I would form a LLC and find a good, inexpensive accountant.  My accountant runs me $200 a month, that's it.  He is money well spent!  Try to find one that specializes in trucking.  Back to the LLC, I would look into starting "PJ Franks Trucking, LLC".  Your friend would lease out to you and who knows, you may get a second or third truck down the road.  He would run under your DOT number.  If he has a DOT number already, then make it a partnership with your 22/78.  

Good luck!

Bob Stephens