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Requirements to start Trucking Business
You will need an Employer Identification Number (EIN) or Federal ID Number. If you don't have one, you can apply for online at www.irs.gov or contact a processing agency to take care of it for you.
You will need to determine if you will be conducting interstate or intrastate operations. Interstate commerce is trade, traffic, or transportation involving either the vehicle, its passengers, or cargo crossing a state boundary. Intrastate commerce is trade, traffic, or transportation within a single state.
- If you operate exclusively in intrastate commerce, you must comply with applicable state and local regulations the commercial driver's license requirement, controlled substances and alcohol testing for all persons required to possess a CDL; and minimum levels of financial responsibility for the intrastate transportation of certain quantities of hazardous materials and substances.
- If your operations include interstate commerce, you must comply with the applicable Federal safety regulations and Operating Authority rules, in addition to state and local requirements.
Federal Motor Carrier Safety Administration (FMCSA)
The Federal Motor Carrier Safety Administration (FMCSA) has strict regulations mandated for New Entrants in the trucking industry, and prospective company owners need to stay compliant with the rules governing the industry. Here is a step by step guide to assist you setting up your business.
Obtain USDOT Number and MC Number
- All first-time carrier applicants will be automatically enrolled in the FMCSA New Entrant Safety Assurance Program. New entrants are required to pass a safety audit and maintain acceptable roadside safety performance over an initial 18-month period before they are given permanent registration status.
- Apply for BOC-3 (Many times this is done by the processing agency assisting with your DOT & MC #)
- File Insurance with the FMCSA (Your insurance company will e-file this)
Apply for Unified Carrier Registration (UCR)
- All motor carriers (for-hire, private and exempt) – as well as brokers, freight forwarders, and leasing companies operating in interstate or international commerce are subject to the UCR. Entities based in Canada and Mexico that are involved in interstate or international commerce in the United States are also subject to UCR.
Complete IFTA Fuel Permit Application
- IFTA is the International Fuel Tax Agreement and is a tax collection agreement by and among the 48 contiguous States and the 10 Canadian Provinces bordering the US, in which motor fuels use taxation laws are uniform with respect to qualified motor vehicles operated in more than one member jurisdiction.
- A qualified motor vehicle is a motor vehicle used, designed, or maintained for transportation of persons or property having:
- Two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,797 kilograms; or
- Having three or more axles regardless of weight; or
- Is used in combination, when the weight of such combination exceeds 26,000 pounds, or 11,797 kilograms gross vehicle or registered gross vehicle weight.
- Qualified Motor Vehicle does not include recreational vehicles unless they are used in conjunction with any business endeavor. Recreational vehicles are vehicles such as motor homes, pickup trucks with attached campers and buses when used exclusively for personal pleasure by an individual.
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IFTA Returns are due on the last day of the month following the end of each calendar quarter. To avoid penalty for late filing, the tax reports must be postmarked no later than midnight on the date indicated. If the last day of the month falls on a Saturday, Sunday or legal holiday, the next business day will be considered as filed timely.
ExpressIFTA has made the process of completing trip sheets and entering fuel purchases much easier and more accurate. ExpressIFTA allows you to create an IFTA return online in minutes!
File IRS Form 2290 Heavy Vehicle Use Tax
- HVUT is the Heavy Vehicle Use Tax that is a fee assessed annually on heavy vehicles operating on public highways at registered gross weights equal to or exceeding 55,000 pounds. The gross taxable weight of a vehicle is determined by adding the unloaded weight of the motor vehicle and any trailers together with the maximum load customarily carried on-road by the truck-trailer combination.
- The HVUT year runs from Jul 1st through June 30th of the following year.
You can E-File the IRS Form 2290 online now at ExpressTruckTax.com
Complete State Registration Applications
- For interstate operations, you will be required to apply for IRP in your base jurisdiction
- IRP, commonly referred to as Apportion, is a reciprocal agreement for registering vehicles that travel in two or more member jurisdictions. Under the Plan, the interstate operator is required to file an application with their base jurisdiction, which issues a base apportioned license plate and cab card. The base plate and cab card are the only identification or credentials required to qualify the carrier to operate interstate or intrastate in IRP member jurisdictions. The cab card will list those jurisdictions in which the operator has qualified and paid registration fees.
- The percentage of miles traveled in each jurisdiction is the basis of IRP registration fees. The number of miles traveled in each jurisdiction for which the registrant apportioned determines the total fees due for an apportioned license plate and cab card. In most cases, the declared gross vehicle weight of the truck or combined gross vehicle weight of the power unit and any trailer determines the fees.
- "Apportionable Vehicle" means any vehicle (except trailers, recreational vehicles, vehicles displaying restricted plates, city pickup and delivery vehicles, buses used in transportation of chartered parties, and government-owned vehicles) used or intended for use in two or more member jurisdictions that allocate or proportionally register vehicles, and is used for the transportation of persons for hire or designed, used or maintained primarily for the transportation of property and is:
- A power unit having two axles and a GVW or registered GVW over 26,000 lbs. –or–
- A power unit having three or more axles, regardless of weight –or–
- Used in combination, when the weight of such combination is over 26,000 lbs. GVW
Additional licenses/permits
- If you will travel in Kentucky, New Mexico, New York and/or Oregon, you will be required to obtain additional permits for those states.
- If you have states in which you pick & drop off loads, you may be required to have additional licenses/permits. Each state has different requirements, so you will need to check with each state.
Generally, this process will take about 10 days to 2 weeks to complete, but it may vary depending how quickly the necessary information is provided and the response time from the federal/state agencies.
If you do not have IRP and/or IFTA and will be conducting business in another state, you will be required to obtain Temporary Permits, prior to entering the state.
Trip Permits
In order to operate in a location which is not registered under IRP, a trip permit must be obtained before entering that jurisdiction. The trip permit is a temporary permit issued in lieu of IRP credentials for properly registered vehicles.
Fuel Permits
In order to operate in a location which is not registered under IRP, a trip permit must be obtained before entering that jurisdiction. The trip permit is a temporary permit issued in lieu of IRP credentials for properly registered vehicles.
Oversize and overweight Permits
In order to operate in a location which is not registered under IRP, a trip permit must be obtained before entering that jurisdiction. The trip permit is a temporary permit issued in lieu of IRP credentials for properly registered vehicles.
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