If you want to start your own trucking company and participate in interstate commerce, you must have an active operating authority. The Federal Motor Carrier Safety Administration (FMCSA) requires you to have an active authority in all states to operate in the trucking industry. There are different types of authorities, depending on the cargo type that states require.
Getting your authority is a big step in your career growth and allows you to get paid for hauling freight as an owner-operator. It is important to follow all the steps to get a trucking authority; otherwise, it will take longer to go active and will delay you hauling loads and making money.
If you decide to start a limited liability company (LLC) you will need to obtain an EIN issued by the IRS to operate your business. It is not mandatory to have an EIN with a sole proprietorship. However, it is highly recommended. If you do not get an EIN, you need to operate your business under your personal social security number, which could open you up to potential fraud problems.
You must pay your HVUT before setting up your (IRP). The Heavy Vehicle Use Tax is an annual tax assessed on all heavy vehicles operating on public highways. Apply here 2290 HVUT!!
If you are operating your trucking company within multiple jurisdictions, you must report all miles driven and pay taxes on them annually. For your IRP, you must register all fleets of vehicles that operate in more than one jurisdiction. You’ll need your truck’s VIN, title information, purchase cost and date, and make and model of your vehicle to register for your IRP. You will also need to have some kind of idea of the states you plan to haul in before you register. Once you have registered and paid the fee, you will receive your apportioned tags.
An IFTA agreement is with the lower 48 US states and Canadian provinces to simplify the reporting of fuel use taxes by truck drivers that operate in multiple jurisdictions. You must complete a fuel tax report at the end of each fiscal quarter, including all miles traveled in participating jurisdictions and all fuel purchases made. Once you have set up your IFTA account, you’ll get an IFTA license and two decals for each qualifying vehicle.
All truck drivers must register with a drug and alcohol testing center before they can get on the road. The FMCSA and USDOT require that all truck drivers have negative drug screens before hiring others or driving themselves.
Once all this has been completed, make plans to get your trucking business paid ($$$) with trucking factoring. Apply for factoring here!!
The general process you encounter with trucking factoring is as follows:
For you to have an active trucking authority and start hauling loads, We will do the following for you:
At a price of $650, you will have your company up and running.
It is important to remember that with an inactive authority you cannot run your trucking company. Once you apply for your MC authority, it takes about two to three weeks to become active. In this time period, you must get a commercial insurance policy with $1million liabilty and $100k in cargo to become fully active.
If you’re looking to get your trucking authority today FILL OUT THE APPLICATION BELOW to get started. Any questions call 877-390-2133 ext 701