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.
Source by: David Judge