State:

Ensuring You Have Complete Operating Authority as You Set Up Your Trucking Company

As you start or operate your trucking company, you know there are tons of details you need to complete, not the least of which is acquiring your operating authority.

So detailed is the operating authority process, that it’s easy to make mistakes.

For example, any commercial trucking that plans to operate across state lines, must obtain the authority to do so from the Department of Transportation (DOT). This authority will define the range in which your trucks may operate and the kind of freight or cargo they can carry.

But did you know you can’t get this operating authority without first having your US DOT number? This number is your truck’s unique identifier and once you have it, you can apply for your operating authority.

Here’s another important note that’s easy to confuse with another: Operating authorities used to come from the former Interstate Commerce Commission; now they come from the DOT. To muddle things up a bit more, your DOT authority (still known as an ICC authority), also is known as an MC number and the MC number also is known as the ICC number.

What’s more, once you receive your ICC/MC/DOT authority, you’ll need to renew it every two years.

Looking to learn more about the nuances of operating authorities?
Here are some more US DOT authority requirements:

You’re going to need a Unified Carrier Registration (UCR) if you have the USDOT number.

You’re also going to have to file a Form 2290 (the Heavy Highway Use Tax) for every vehicle in your fleet that has a gross vehicle weight more than 55,000 pounds, which will travel more than 5,000 miles on U.S. highways between July 1 to June 30 each year.

You’re going to need an SCAC (Standard Carrier Alpha Code) in order to produce your PAPS (Pre-arrival Processing System).

And let’s not forget acquiring your International Fuel Tax Agreement (IFTA).

The details of operating a commercial trucking company are considerable and daunting to most of us. As the owner of a trucking company, you truly do have better things to do with your time — such as market your freight services and hire good drivers — than worry about making sure your operating authority is up to date. A well-established and knowledgeable authority service can help ensure that you are in compliance with all operating authorities, freeing up your time to do what you do best – transport goods.

David Judge is the owner of Your Authority Service, a provider of trucking insurance quotes and operating authority filing. David’s experience with small trucking companies allows him to understand what it takes to start a new trucking company.

By car insurance | No Comments

Five Steps For Starting A Small Trucking Company

Commercial trucking still is the backbone of our economy. Without the huge tractor trailers criss-crossing through the entire country, the United State’s economy would come to a standstill. In fact, KPMG reported in 2008 that trucks ship about 85 percent of goods in the U.S., with shipping needs growing by three percent each year.

This could be a great time for starting a small trucking company.

Below is an overview of five steps you’ll need to take to fulfill the federal and state requirements to do so:

1) What kind of legal entity are you going to operate? Will you be a limited liability corporation (LLC), or will you do business as a sole proprietor. Each has its pros and cons; study the differences well before deciding.

2) Naturally, you’ll need to consider whether you will purchase outright our lease your truck and even your trailer. Some companies purchase their trucks and lease (rent) the trailers.

3) You’ll need to file your authority and other federal requirements. The exact filings and requirements will depend on the details of your situation. You’ll also need to file for your IFTA (International Fuel Tax Agreement) stickers for taxes on your fuel.

4) Purchase the insurance required by the FMCSA (Federal Motor Carrier Safety Administration) and obtain your state permits.

5) Write your driver info and requirements (check with the FMCSA for an outline), receive your authority and permits and start hauling.

Of course, there’s a lot more work involved outside of registering your fleet. You’ll need to hire safe, reliable and trustworthy drivers, you’ll need to market your services and you’ll need to have or come up with the capital to start your operations.

An “authority service” can help you with paperwork, filings and, often times, insurance requirements.

But being your own boss by starting a small trucking company — especially in an economy where jobs are discarded and people let go as if employers were petulant children who have tired of yesterday’s toys — often is a great way to bring you and your family financial security, if not wealth.

If you have experience as a driver, dispatcher or otherwise have extensive knowledge of the trucking industry, now could be the perfect time to become self-employed by starting a small trucking company.

David Judge has helped start small trucking companies with his company Your Authority Service. He can provide the proper filing of truck operating authority and USDOT numbers, keeping your trucks operating legally in the lower 48 states.

By car insurance | No Comments

Obtaining Trucking Permits To Operate Your Trucking Company: Necessary And Daunting

If you’ve decided to open your own commercial trucking company (and congratulations if you have!) you’re going to need to acquire several trucking permits before you can haul your first load.

Once you’ve decided on your company name and what kind of company you want to be (sole proprietor, Limited Liability Corporation, etc.), you’ll need to register your company’s name in the state in which you reside. You also will need to get a Federal ID number for your company.

Then you’ll need to get your Federal Motor Carrier Safety Administration (FMCSA) Authority for Trucking. This also is known as your Interstate operating authority. Depending on the scope of your business, you may need to acquire several operating authorities based on what kind of cargo you may carry and the area in which you want to operate legally.

These operating authorities also will determine what kind of insurance and financial responsibility your trucking company will have to maintain.

Some additional trucking permits you’ll need to acquire are a Department of Transportation (DOT) number and Unified Carrier Registration (UCR). You’ll also need to obtain your IFTA (International Fuel Tax Agreement).

The IFTA is an agreement among states to report fuel taxes by interstate motor carriers. To register for your IFTA, you’ll need to have established a place of business in the state in which your trucking company will be performed. Your fleet’s operating records must be maintained (or made available) in that state. Mileage also must be accumulated in that state. You also must operate in at least one other IFTA area.

The trucking permits above are just a few of the permits you’ll need to acquire to start or operate your trucking company. Obtaining these can be daunting and delays are common — you’re dealing with government entities, after all. An “authority service” can help you with these many details.

A well-established authority service knows the ins and outs of the transportation bureaucracy and will make it a point to always be up to date on the latest laws and changes to existing laws and the requirements to obtain trucking permits.

An authority service also will be able to help you determine the considerable insurance coverage your trucking company will need to purchase. A well-established authority service can be a great “partner” to have as you start, operate and build your trucking business.

David Judge is the owner of the truck operating permit company, Your Authority Service. David’s company can provide trucking companies with Texas DOT licenses, and operating authority.

By car insurance | No Comments
« Older Entries
Newer Entries »