Navigating through the government regulations in the pursuit of starting a trucking business can be quite a challenge. There’s no running away from the fact that trucking is a heavily regulated industry. Especially after the advent of the COVID 19 vaccine, it has yet again picked pace. Thus, if you wish to start a trucking business of your own, you’ll have to acquire numerous government regulations.
Gone are the days when you’d only have to keep up with Amazon relay box truck requirements. There are various other regulations that have to be met on time, so you can start functioning. Below, we have mentioned a checklist of all the steps you must take when starting your trucking company. If you have already created a business plan, there’s more to starting your trucking company. Continue reading till the end:
● Get a CDL
CDL, which stands for commercial driver’s license, is important for every aspiring business owner to acquire. However, obtaining the CDL entails a comprehensive background check. Furthermore, you’ll have to go through a CDL training exam too. Once it is over, you’ll have to pass the CLD exam and driving test. You have to be at least 18 years of age to acquire the CDL.
And you must be over 21 years of age to drive a truck from one state to the next. Every state has a different take on CDL testing standards. We recommend you apply for the CDL being offered in your state. Meet with the local department of motor vehicles to apply for it.
● Apply for DOT and Motor Carrier Authority Numbers
If you wish to haul cargo within the US, your trucking company has to acquire these numbers. The U.S.DOT number is used for the company’s safety record. It ensures that the company is meeting the compliance requirements. On the other hand, the motor carrier number, also known as an operating authority, will identify the kind of rucking business being run.
Furthermore, it will also shed light on the types of goods transported from one location to the next. You must visit the Federal Motor Carrier Safety Administration to seek both numbers. In order to get both of these numbers, you must complete the MCS 150. And not to forget the safety certification application. Once the application is filed, you will receive both MC and USDOT numbers. However, your application will take some time to be accepted.
● Get an International Registration Plan
IRP, an international registration plan, is a plate issued by the company’s home state. It allows a trucking company to operate in all states. Plus, it also allows the company to operate in Canadian provinces. For more information, you must seek help from the official website of the transportation department.
● Complete the UCR
UCR, which stands for unified carrier registration, was created to verify the insurance coverage of every state. Especially where the motor carrier is operating, the UCR will have to be present. You can register for this using the company’s MC and USDOT Numbers. You can visit the official website of the Department of Transportation. You can even get in touch with the customer service personnel to know more. If you don’t have a UCR, you won’t be allowed to proceed with your trucking business.
● Understand the Heavy Use Tax Regulations
Every truck that weighs more than 55000 pounds is obliged to pay the heavy use vehicle tax. You must complete and file the 2290 tax form to pay your business’s taxes. This has to be paid every year, no matter what. We recommend you visit the state’s official website to seek more information. Once you understand the dynamics of tax-paying, it will be easier for you to complete the form and be on time.
One important requirement to gain interstate authority is to look for an updated BOC-3 form. And ensure that you buy one which the FMCSA approves. This form will designate the area where your company is allowed to operate. Every state has a local agent who will help you out. The BOC-3 form is important to acquire, so you can begin with funding your trucking business.