Owners/Owner Operators
Applying for your Motor Carrier Authority and going into business for yourself are major steps in your life, here is a list of the first things you need to consider as you begin your journey. These lists do not include everything you need to think about or be prepared for, but they will get you off on the right foot. Good luck!!
Create your state corporation,
LIMITED LIABILITY COMPANY OR LLC - It’s the most common business structure for new small businesses because it is the simplest to maintain and protects your personal assets under most circumstances.
THE TRUCK AND TRAILER - This will be by far your biggest expense. Most companies start out with used equipment. The easiest way for a new trucking company to get into a truck and trailer is usually through a lease to own option. The bad thing about a lease to own option for a new company is that you are limited to how much they will lend you. The good thing about this type of “loan” is that you usually don’t have to come up with a huge down payment because they are 100% financed. Often this is a new company’s only option. Because leases are fully financed, you typically only have to come up with the first and last month’s payments. Since monthly payments tend to range between $2,000 and $ 2,500, your first payment will be around $5,000. We recommend buying a used truck and trailer.
VEHICLE REGISTRATION FEES - This depends a lot on the state you are based out of and the states you are going to run in, but you can pretty safely plan on paying between $1,500 and $ 2,500 per year and you will usually have to pay the entire amount upfront. You need a form 2290 every August and new plate every year. The trailer needs a One Time Permanent Plate. We know the right people who can do it for you without any problems.
INSURANCE FOR TRUCK, TRAILER AND LOAD - Your insurance cost will range between $8,000 and $15,000 per year. To start the policy, you will usually need to make a down payment of between $2,500 and $4,500. All together, we will help you plan and get the best rates and will try to find drivers with at who have had a professional licence atleast one year in order to meet your needs.
NEW MOTOR CARRIER AUTHORITY - We can help you apply for and receive your DOT and MC numbers the same day that you give us the go ahead. We will also file the government required BOC-3. Keep in mind that the Authority will not be active for 21 days.
UCR (Unified Carrier Registration) - This is a filing required for all for-hire private motor carriers who cross state lines. This fee must be renewed each December for the following year. We will notify you with plenty of time to make sure that it stays current. Failure to file the UCR can get you stopped at a port and/or get you a ticket.
IFTA (International Fuel Tax Agreement) - This is done per quarter and for each truck. Any motor vehicle registered at 26,001 pounds or more and registered with apportioned plates is required to submit a quarterly IFTA report. We will tell you what to do when you have completed your final trip for the quarter.
ANNUAL DRUG AND ALCOHOL - the DOT requires Pre-Employment test, Drug and Alcohol Policy in your company name, membership to the DOT compliant consortium for the year.
AUDIT ASSURANCE FILING SYSTEM - Every new Motor Carrier will be required to have a New Entrant Audit within the first 12 months of operation. The auditors want to see that you have systems in place to ensure that you remain compliant with the DOT regulations. Our Step by Step Audit Assurance System is that system.
TRUCK INSPECTIONS - The DOT requires an annual DOT inspection. We will have you get to one of our associates to get it done ASAP.
FACTORING COMPANY - After delivery is done the account will be paid in about a month. So every time you finish a job, we can help you hire a factoring company to get your money in 48 hours.
STATE FUEL PERMITS - Oregon, New Mexico, Kentucky and New York have separate Permits. We can help you get these without any problem.
ELD (Electronic Logbook Device) - This is an electronic instrument to keep a record of the driver’s movement, hours of work miles, etc. It’s a safety ordinance by the DOT (Department of Transportation) they also offer GPS to get your dispatch and make it easier to find your next load.
TOLLS AND PREPASS - To run freely and faster all over United States there are Tolls and there are Weigh Stations. We will help you set up your account on your truck to pay every toll faster and bypass most weigh stations around the Country.
VIDEO CAMARAS - Because of the accidents on the road, we recommend having a video camara that will record at least the last 30 seconds in order to help you fight a traffic ticket and lower your insurance.
MECHANICS AND MAINTENANCE - We will help you keep your truck on the road. We have several mechanics we can recommend for all your needs in Miami and we will help you find one near you.
ROUTES AND ROADS - We will help you get the best roads available avoiding bad weather, busy roads etc, and we recommend using GPS on all your vehicles for better access, bridges, u-turns, ETA (estimate time of arrival), street speed, etc. We will help you to be one hour early on your appointment every time.
FUEL CARDS - We will help you get fuel cards with the best in the business, so you don’t have to come up with more money to run your truck smoothly. They finance fuel, repairs, tires etc.
MONTHLY PARKING - We will help you find monthly parking for your truck. This helps save money in the long run.
As you see, we have it all so you don’t have to worry about anything.