23 February, 2021

License and Permit Checklist to Start a Trucking Business

For a start-up trucking company, it can be a struggle to work your way around the various government guidelines for trucking companies. Here is the checklist of the necessary steps that will help you gain authority and operate legally as a trucking company in the US.

Obtain a Commercial Driver’s License

All drivers of your company require valid commercial driver's licenses to operate heavy trucks (CDLs). A comprehensive background check, CDL preparation, a written permit exam, and a driving test are included in obtaining a license. You must be at least 18 years old to be eligible for a CDL. To drive a truck from state to state, you must be at least 21. CD testing requirements vary from state to state so it is better to check with your local department of motor vehicle office regarding your state requirements.  



Apply for Your Federal DOT and MCA Numbers

For your trucking business to haul freight in the United States, federal dot and Motor Carrier Authority numbers are needed. To track the safety record of the business and comply with the regulations, the USDOT number is used. Whereas the motor carrier or MC identifies the kind of trucking company you conduct and the kinds of goods you are licensed to transport. You can get both numbers by registering your company with the FMCSA. You can visit the FMCSA website.

 

Complete Your UCR 

To check active insurance coverage in each state where a motor carrier operates, the UCR system was developed. You must log in using the USDOT and MC numbers of your business. 

 

Get an International Registration Plan or IRP plate

An IRP license plate issued by the home state of the business enables your vehicle to work in all states, as well as most provinces in Canada. A yearly renewal charge is expected for the plate. 


Know Heavy Use Tax Regulations

The federal heavy-highway vehicle use tax refers to any truck that weighs 55,000 pounds or more. You must complete and file a 2290 tax form with the IRS on an annual basis to pay taxes owed on your heavy trucks.  

 

Obtain an IFTA Decal

To simplify the monitoring of fuel used by trucks traveling around the lower 48 U.S. states and several Canadian provinces, the IFTA agreement was established. The law encourages your business to have a single fuel license and requires you to file tax returns on quarterly fuel use with the state where you are based.  

 

Get A Standard Carrier Alpha Code (SCAC)

SCAC is a privately regulated code used to distinguish various transport companies. You would require obtaining a SCAC code if you intend to haul military, government, foreign or intermodal loads. 

 

File a BOC-3 Form

Registering an up-to-date BOC-3 form with the FMCSA is one condition for securing an interstate operating authority. 

If you want to venture into the trucking business and not sure where to start from, contact us at Global Multi Services where we will assist you with all trucking-related requirements. Get in touch!



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