IS MC AUTHORITY A NECESSITY?

Starting a trucking business is not child’s play. It requires adequate preparation, thorough research, understanding how the industry works, and many more. You also need to obtain many permits and licenses, which takes time and money. One of the most vital authorities you need to get your trucking company off the ground is an MC Authority. The Federal Motor Carrier Safety Administration is responsible for regulating the trucking industry. The agency is also responsible for ensuring safety, compliance, and conducting inspections. Therefore, you need to do things by the books. Also, the trucking business is very lucrative if handled in the right way. Are you looking for information to absorb before starting your trucking company? Global Multi Services applauds you. Keep reading as we explain the meaning and necessity of the Motor Carrier Authority. Let’s dive in.

WHAT IS MC AUTHORITY? 

 

MC Authority is a road-legal clearance given to motor carriers by the Federal Motor Carrier Safety Administration. MC Registration allows motor carriers to operate interstate and inter-border commerce. Without an MC Authority, trucking companies cannot haul freight or passengers for profit. Obtaining MC Authority allows trucking companies to choose their load, schedule, and even route. This often leads to a more efficient and income-generating business.

 

IMPORTANT STEP TO TAKE BEFORE APPLYING FOR MC AUTHORITY

 

Starting your trucking company involves many twists and turns. Before you even decide if you need an MC Authority, there are things you need to put in place. They include:

 

Business Registration 

 

Business Registration is the first and most crucial step to take after deciding to start a trucking company. Whether you plan to run it as a sole proprietorship or limited liability company, your business needs to be registered legally. There are different types of business structures so, choose the one that works best for your company. You can also seek the advice of a legal practitioner for guidance to avoid costly mistakes. 

 

Business Plan

 

Planning your business helps you have focus, vision, and goals. It makes you set achievable standards for your business and press towards achieving your goals. Before starting your business, sit back and do your research about the industry, find out its loopholes, and how you can bring solutions to draw more awareness to your business. The type of MC Authority you need depends on the type of trucking business you want to run. What and where you haul also play an important factor when starting your company. These decisions will help you determine the type of MC Authority you will obtain. 

 

Trucking Insurance

 

Trucking insurance is a necessity for all trucking companies. No matter the type of trucking company you are running, you need to have good trucking insurance. Research different insurance companies and pick the best for your business. When looking for an insurance company, choose the ones that specialize in commercial trucking companies. The type of freight you haul and where you operate across will also help determine your insurance package. 

CORPORATION FILING: CHOOSING THE BEST CORPORATION FOR YOUR TRUCKING BUSINESS

Are you planning to start a trucking business or want to reevaluate your current business organization? If so, it is critical to know and understand different business structures. It is important to do your research about the appropriate corporation filing for your business. Look at the tax structures advantageous to your revenue and how best you can protect yourself from liability. Each business structure, from sole proprietorships, S-corps to Limited Liability Companies offer different tax structures, and they are unique. Therefore, it is essential to weigh your company’s needs and select wisely. You can also contact an attorney or business service provider to choose the best option for your business. Read on as Global Multi Services explain the business structures you can choose from.

PARTNERSHIPS AND SOLE PROPRIETORSHIP

A sole proprietorship is one of the easiest and most affordable business structures to set up. It is a good option for individuals that want to work alone. In a sole proprietorship, the owner’s business income and expenses are included in their personal income tax.  However, the structure offers no tax benefits and liability protection. You also pay both employer and employee’s employment tax.

Generally, partnerships are a business structure with more than one owner. In this type of structure, multiple owners invest in the business and share its profits and losses. They also share the lawsuit debts depending on the type of partnership they have set in motion. 

S-CORPORATION FILING 

S-corporation is more beneficial to small businesses because of its tax benefits and personal asset protection. The company's income and losses are passed through to shareholders and included on their tax returns. These help them avoid double taxation, which means more money for them. They are also subjected to many corporation rules. These include filing an article of corporations, holding shareholder's meetings, and many more. 

C-CORPORATION FILING 

C-corporation is one of the most expensive and complex business structures to set up. It is an independent legal entity that deals with more regulations and requirements. They are often formed under the laws of each state and offer liability protection to its shareholders. That means the shareholders personal asset is not at risk. The corporation can also retain some of its profits without the shareholders paying tax on them. In C-corporation, the company is subjected to double taxation. This means the business income is taxed as a separate entity. Earnings distributed to the shareholders in the form of dividends are also taxed on their personal income tax. 

LIMITED LIABILITY COMPANY 

Limited liability companies are one of the most popular business structures among entrepreneurs in the world today. It is easy to manage and follow lesser rules when compared to a corporation. Setting up a limited liability company requires filing articles of organization with the secretary of state in your base stare. It provides entrepreneurs with liability protection without double taxation. That means the business profits and losses pass through the owner and are included in their personal income tax. 

Kentucky Permits: How to Stay Compliant in Trucking Industry

The trucking industry is one of the most regulated industries in the United States and staying compliant can sometimes be overwhelming. These include obtaining the Kentucky permit, MC Authority, IRP Plate, IFTA permit, and many more.  Many organizations are responsible for supervising various parts of this industry. These include the Federal Motor Carrier Safety Administration, insurance companies, the Equal Employment Opportunities Commission, and others. With so many regulations involved in the industry, complying with them can be stressful for many trucking companies. But can be fulfilled with Global Multi Services, a company that helps trucking companies with trucking authorities and permits. In this blog, we will explain how trucking companies can stay compliant in the trucking industry.

 

Know the Important Permits; Obtain Kentucky Permits

 

Every state is responsible for setting regulations governing their state and these may vary from state to state. For example, states like Kentucky charge their own road tax. Motor carriers traveling across the state with a Gross Vehicle Weight of 60,000 pounds must obtain Kentucky KYU Permit. Therefore, it is imperative to understand the state and federal permits and know the ones required by your fleets at any time.

 

Stay Proactive and Informed

 

Different software is available that can give trucking companies the tools they need to protect their drivers, brand, and profits by minimizing risks before they happen. That means they can proactively schedule programs that will reduce their chance of non-compliance and loss. These include drivers training, Employer Pull Notice (EPN), drug and alcohol testing, and many more. These position them for higher safety ratings and help them stay compliant. Most trucking companies have dedicated teams and use software programs that alert them when federal regulations change or when policy renewal dates are approaching. Staying on top of the data in real-time avoids penalties as corrective actions are put in place.

 

Know the Hours of Service 

 

The Federal Motor Carrier Safety Administration sets Hours of Service regulations for the trucking industry. These also apply to motor carriers engaging in interstate commerce. Therefore, you should have a clear understanding of the Hours of Service and the documentation requirements for your drivers t help them and the entire team stay on track. 

 

Be Organized; Get Your Kentucky Permits

 

Obtain the Federal Motor Carrier Safety Regulation handbook for your employees and let them familiarize themselves with it to learn all the regulations and requirements. Organize a filing and recording system that keep the drug and alcohol testing, maintenance, and time records. Files your Kentucky Permits, IFTA Permit, and other essential permits. You can hire an individual or outsource to a reputable trucking authority company like Global Multi Services if you are not good with paperwork and staying organized.

 

Identify Non-compliance Among Drivers 

 

The FMCSA's Safety Measurement System be used by trucking companies to identify non-compliance among their drivers. The information helps guide ongoing compliance and safety training. Truck drivers should also know the essential regulations and understand the Driver Vehicle Inspection Reports (DVIRs).