I see a few red flags. One being if these are subs - they are not employees, meaning they should have their own business license and insurance. Driving in your vehicle with your company name is a flag. ‘Also - whose name is the vehicle going to be registered in?
This will be just like a regular lease anywhere else. They are responsible for licensing, insurance, maintenance etc.. In turn for cheap rental or lease rate my company name will be on the side of a nicer truck than they would normally have.
There are a few situations that could go wrong with this deal. Your best bet is to buy the vehicles and sell them to the subs. You could always hold the note - but becareful with your signs on their vehicles.
I am careful of the fine line between employees and subs that is why I will lease the vans to them. I provide about 95% of their work and they get paid on commission providing their own insurance, tools and other resources. They have no set hours but they know what is expected of them as professionals.
The more professional we look the more money we can charge. I consider us business partners and not just “subs” and contractor. I don’t see how it would make a difference to the IRS what a truck or work shirt says as long as all of our ducks are in a row as far as our business relationship goes.
How about when they are not working for you - and driving around with your company name on the truck and they get in an accident. .
License and insurance will be in their name. I am not worried about them driving around with my company name. We have gotten all of the “wildness” out of our systems (and managed to stay out of prison unlike our past acquaintances) and are now family men with young children. I have complete trust in these guys and they are completely on board with my vision of the future including franchising or license agreements.
Thank you for your input tho. These are things that I will be carefull with so as not to raise red flags.:thumbsup: