Ever encountered a truck on the road and thought, I wonder what’s in it? Trucks are used for moving goods that are either too large or high in quantity to be moved by an ordinary vehicle.
Maybe you’ve gone one step further and thought about owning your own trucking company.
A trucking company can be an excellent business pursuit. However, before you hit the road with your trucks, it’s important to take care of the legal considerations. Much like insurance, the right legal instruments can keep your trucking company protected, in case you run into any accidents.
Keep reading to learn more.
Is A Trucking Business Profitable In Australia?
When you’re contemplating whether or not to start a trucking company, you’ll need to consider a lot more than whether the trucking industry is a profitable one. Even though the trucking industry is reported to be sturdy and currently well in demand, we don’t recommend jumping in and starting your trucking company solely based on this information.
To start a trucking company, it’s important to give thought to factors such as whether there is a demand in your specific location, the potential competition and financial factors that will impact your business. With the right research and information, you’ll be able to create a business plan and go from there.
How To Start A Trucking Company: Legal Tips
A lot of company owners make the mistake of undermining the importance of legal matters when it comes to starting their own company. Business and the law consistently overlap, so if you want to run a successful trucking company, you’ll need to adequately prepare for the legal aspects of running your own company. Getting a legal expert to talk you through the legal factors you need to be aware of is always a good idea – we’ve listed a few key legal considerations for when starting your trucking company to get you started.
Register You trucking Company
To start a trucking company, it’s crucial to ensure your company registration is done properly. It’s always a good idea to seek the help of a legal expert, as they can make sure nothing gets missed. To start a company, you’ll generally need to sort out things like:
- Company governance
- Company name
- Tax obligations
The actual registration application can be done online. However, before you even get to that part, you’ll need to get the important details in order first. You’ll also need to think about the kind of company you want to register and the ongoing obligations you’ll have with ASIC, as this will impact how you run your trucking company.
We know this can all be pretty overwhelming! Getting in touch with a legal expert is a good way to make sure everything gets covered and your company is all set to run a successful venture.
Get Contracts For Your Trucking Company
As we mentioned earlier in the article, legal instruments are a lot like insurance for your business. You hope for the best but just in case, you are prepared if the worst happens. It’s essential to have well drafted and strong legal agreements that work to protect your business.
For example, a Service Agreement can help establish proper communication with your clients. Service agreements cover important matters like scope of work, liabilities, payment, termination and much more. Having these details not only talked about but cemented in a well drafted document can help ensure that business operations run smoothly.
Other contracts also aid in ensuring your business runs well, without many hiccups along the way. You may want to look into getting:
Talk to one of our legal experts today to see what legal agreements are right for your trucking company.
Licences and Other Regulations
Taking the time to consider Regulatory Compliance measures is also one of the most important legal factors you’ll need to make room for when starting a trucking company. Regulatory compliance refers to all the laws and regulations that impact your specific industry. For example, there may be a certain license you need to attain prior to starting your trucking company. Local council rules and permits should also be looked into.
Running a legally compliant business is pretty crucial, the last thing you want is to face legal penalties or a loss of business reputation because you didn’t correctly follow a rule. Talking to a legal expert can help you figure out what you need to do.
Can You Start A Trucking Company Without Driving?
Yes, you can start a trucking company without actually driving the trucks yourself. In this scenario, you’ll be hiring drivers or seeking them as contractors. No matter what type of employment your drivers are under, you’ll need to establish a professional relationship by having an Employment Agreement or a Contractor Agreement.
It might seem tempting to just hand your drivers their keys and sort the details out as you go. You might even come up with a generic employment contract. We strongly advise against this, as this is how potential conflicts start. Without a sound contract in place, disputes can be hard to resolve which can ultimately prove to be financially draining for your trucking company.
If you’re going to be hiring employees to work in your trucking company, then you need to be aware of your employer duties. As an employer, your obligations will involve:
- Minimum pay, awards and entitlements
- Providing a safe work environment
- Ensuring your employees have the necessary equipment to perform their duties
- Allowing appropriate rest and breaks
- Ensure employees are correctly receiving their leave and sick days
There’s much more than we listed above – an Employment Expert can let you know more about your employer obligations. Many of the details can be worked out in an Employment Contract. It’s also a good idea to utilise other legal instruments, such as a Workplace Policy or a Staff Handbook to ensure you’re taking active measures to provide your employees with a positive work environment.
Whether you’ll be driving the trucks yourself or hiring people to help out, a trucking company can be an exciting step into the business world. However, it’s important to protect your trucking business right from the start with the right legal considerations. To summarise what we’ve discussed:
- Before starting a trucking company, it’s crucial to address legal considerations in order to protect your business
- Profitability in the trucking industry in Australia requires careful consideration of factors like local demand, competition and financial aspects
- Legal preparation is vital for success, with key considerations including proper company registration covering shareholders, directors, governance, company name, and tax obligations
- Acquiring contracts is akin to having insurance for your business, with well-drafted legal agreements, such as Service Agreements, Privacy Policies and Non-Disclosure Agreements, playing a crucial role in protecting your business
- Compliance with regulations, licenses, and local council rules is essential for running a trucking company, minimising the risk of legal penalties and preserving your business reputation
- Starting a trucking company without personally driving is possible by hiring drivers, but it requires establishing professional relationships through Employment or Contractor Agreements, ensuring legal compliance, and addressing employer obligations such as pay, safety, equipment provision, rest breaks and leave entitlements
If you would like a consultation on starting a trucking company, you can reach us at 1800 730 617 or firstname.lastname@example.org for a free, no-obligations chat.
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