The Wild and Whacky Scrapping Adventures of MattyNoNeck

**Sidewinder** · 08-01-2014, 10:33 AM

Originally Posted by MattyNoNeck

I’m going to offer a 50/50 split and keep the yard tickets in my name (so that when I want to try and sell myself as a dealer or a peddler, I can have a better history in their computer) and if he doesn’t want it then he can take a hike and I’m no worse off than before. I’m also not going to mix my scrap and his so that there’s no question on who should get what. His scrap, my truck, 50/50.

Very bad idea from the get go. It may be "His" scrap, but it's YOUR truck, YOUR insurance, YOUR tires/brakes.

Retro hit the nail on the head with how our partnership works. We're clear and concise on EVERY scrap run (As things can change from load to load), and our usual arrangement is 60/40 (60% to the one driving the truck/trailer and 40% for the one being the hired help)

We've not had an issue with that arrangement. It's an open offer, take it or leave it (Unless we both need to use the trucks/trailers, and at that point, more discussions are involved).

But I think 50/50 on something like you're doing is a bad idea.

However, good idea for putting the scrap in your name, to keep things in YOUR field of play.

**MattyNoNeck** · 08-01-2014, 10:46 AM

Originally Posted by Sidewinder

Very bad idea from the get go. It may be "His" scrap, but it's YOUR truck, YOUR insurance, YOUR tires/brakes.

Retro hit the nail on the head with how our partnership works. We're clear and concise on EVERY scrap run (As things can change from load to load), and our usual arrangement is 60/40 (60% to the one driving the truck/trailer and 40% for the one being the hired help)

We've not had an issue with that arrangement. It's an open offer, take it or leave it (Unless we both need to use the trucks/trailers, and at that point, more discussions are involved).

But I think 50/50 on something like you're doing is a bad idea.

However, good idea for putting the scrap in your name, to keep things in YOUR field of play.

When I actually proposed the 50/50, he was cool with it and then said take $20 off the top of the haul and give it to me for use of the truck. So say we bring in $100 worth of shred. $20 immediately goes to me and we split the remaining $80 and get $40 each. That ends up at a 60/40 split. And if it's less than that, I get a bigger percentage, basically. Let's say we haul in $60. I get $20 right away and we split the remainder and get $20 each. So I get 40, he gets 20...I total up at 2/3rd cut and he gets a third. Seems to work out in the end IMO. So every run, I get a guaranteed flat rate for use of the truck which I will put right into the gas tank and off to the side for maintenance.

And if we run into a disagreement, I'll walk away. I'm the one in the literal and figurative driver seat.

**mthomasdev** · 08-01-2014, 11:49 AM

Originally Posted by MattyNoNeck

When I actually proposed the 50/50, he was cool with it and then said take $20 off the top of the haul and give it to me for use of the truck. So say we bring in $100 worth of shred. $20 immediately goes to me and we split the remaining $80 and get $40 each. That ends up at a 60/40 split. And if it's less than that, I get a bigger percentage, basically. Let's say we haul in $60. I get $20 right away and we split the remainder and get $20 each. So I get 40, he gets 20...I total up at 2/3rd cut and he gets a third. Seems to work out in the end IMO. So every run, I get a guaranteed flat rate for use of the truck which I will put right into the gas tank and off to the side for maintenance.

And if we run into a disagreement, I'll walk away. I'm the one in the literal and figurative driver seat.

Matty,

If you do this, get some purchase order or invoice slips that you fill out and have him sign. Consider getting a business checking account so that you can give him his share in a check. By doing this, you will have everything documented at tax time. IRS can't say "well you sold $XXX at Weitsmans, where is your proof that you bought this or had a business arangment with Joe Shmoe."

**MattyNoNeck** · 08-01-2014, 12:04 PM

Originally Posted by mthomasdev

Matty,

If you do this, get some purchase order or invoice slips that you fill out and have him sign. Consider getting a business checking account so that yo ucan give him his share in a check. By doing this, you will have everything documented at tax time. IRS can't say "well you sold $XXX at Weitsmans, where is your proof that you bought this or had a business arangment with Joe Shmoe."

Already got the invoices. As for a checking account, it may have to be a "business" account in the sense that it just happens to be separate from my normal one. If I remember correct, one needs an EIN to set up business bank accounts, or am I wrong there?

**mthomasdev** · 08-01-2014, 05:07 PM

Matty,

Over the line in Mass, I need a DBA (doing business as) certificate, unless my name is in the business name.

**Sidewinder** · 08-01-2014, 05:16 PM

Check into "Doing business as" or DBA with your tax person. I'm not REALLY clear on the particulars; But as far as I know, DBA gives you a tad more protection/isolation at tax time, etc.