USDOT Number: HOW TO RUN A PROFITABLE TRUCKING COMPANY

The trucking industry is one of the engines running the economy of the United States. They are constantly hauling raw materials from suppliers to manufacturers and delivering finished products from manufacturers to consumers. Without them, the whole economy will stop moving and can affect other industries. The trucking business is very profitable and competitive. Many trucking companies are established every year, but they end up failing. These often happen to great truckers that are not a good entrepreneur. Therefore, knowing how to grow your trucking business is more than being a good truck driver. You need to choose the right niche, stay compliant, obtain your USDOT Number, charge the right rate, and many more.  Read on as Global Multi Services gives us the step to run a profitable trucking business.

HAVE A BUSINESS PLAN 

Having a business plan is one of the fundamental rules when starting a business.  Before rushing to buy a truck or register your business, do some research and planning. These will give you a broader view of the industry and help you develop a basic business plan. Your business plan should contain your market research, data-driven strategy with step-by-step goals, and many more.

 

CHOOSE THE RIGHT MARKET NICHE 

 

Choosing the ring market niche is one of the most important steps to run a successful trucking business. Your market niche determines the type of equipment you buy, the rates you charge, and your route.  The market is very competitive and choosing the right niche will help you grow your business. You can focus on specialized freight and transport them from one place to another. For example, hauling frozen, meat, and fresh produce in temperature-controlled trucks has many advantages. These include less competition, year-round work, and resistance to recessions.   

 

GET YOUR USDOT Number 

 

Before starting your trucking business, you need to register and obtain a USDOT Number and other licenses. The USDOT Number is a unique identification number given to trucking companies operating commercially across multiple jurisdictions. Trucking companies transporting hazardous materials intrastate in quantities that require a safety permit must also register for a USDOT Number. The DOT Number is issued to trucking companies by the Federal Motor Carrier Safety Administration. The number is used for monitoring and collecting the company's safety information.

 

BUY THE RIGHT EQUIPMENT

 

Buying the right equipment is an essential factor when establishing a trucking business. It provides seamless operation and avoids failure. Choose a licensed truck driver, professional dispatcher, experienced operation manager, and many more. Also, you need to ensure the truck you are purchasing can accommodate the type of freight you want to haul. Get an insurance coverage plan as it will cover any loss in case of an accident.  But make sure you choose an insurance company that specializes in truck insurance. 

 

BE OPEN-MINDED

 

Research has shown that 91% of the trucking companies operating in the United States are small. That is, they have less than six trucks in their fleet. These small trucking companies make a great impact on the trucking industry. Therefore, do not limit yourself. Be open to the challenges that come with having a trucking business and set up achievable goals to avoid failure. 

MC AUTHORITY: BENEFITS OF JOINING THE TRUCKING INDUSTRY

Trucking industry is one of the largest industries that provides great streams of revenue in the United States. It also transports 70% of all raw materials and goods in the country. These made the industry an essential aspect of the country's economy, and many entrepreneurs are venturing into the business every day. The trucking industry is one of the most competitive industries but very profitable and highly regulated. Trucking companies must comply with rules given by the Federal Motor Carrier Safety Administration and other organizations governing the industry. Motor Carriers need to obtain MC Authority, Motor Carrier Permit, IRP Plate, USDOT Number, and other permits to operate legally across multiple jurisdictions. There are many things to consider in the trucking industry before making the jump, and while the industry has its disadvantages, its benefits overweight them. Are you considering joining the trucking industry? Or simply looking for ways to convince your friend about the trucking industry? Global Multi Services have you covered. Read on as we explain some of the benefits of joining the trucking industry. 

VERY LUCRATIVE AND EVER-GROWING 

The Trucking business is one of the businesses that has overcome the economic crisis, changing technologies, environmental regulations, and many more. The industry has continued to provide growth, ease, and employment opportunities to many people. And will continue to provide essential services to the country for decades to come. The trucking industry has the potential to be very lucrative if you manage your business well. It is a big reward for trucking companies willing to work hard and dedicated to operating at high efficiency. Many trucking companies increase their revenue by maximizing their equipment utilization, employing good drivers, and controlling costs to drive as many loaded miles as possible. Therefore, the key to earning more money in the industry is staying compliant, registering for the EPN program, obtaining MC Authority, and many more. 

FREEDOM TO USE THE ROAD WITH MC AUTHORITY

Most people working in the office are always sitting behind desks surrounded by cubicles. But things are different when it comes to the trucking industry. Trucking companies have their MC Authority, a license to operate commercially in the state. Truck drivers also have the road at their disposal and the freedom to travel any time of the day. They travel across different routes, see new locations, experience cultures, and many more. The freedom to travel across many communities and cultures is what you get to enjoy in the trucking industry.

PROVIDES INDEPENDENCE WITH MC AUTHORITY

Joining the trucking industry gives you a sense of independence. That is why it is among one of the fastest-growing and desirable industries in the United States. With your MC Authority and other permits, you have the benefit to operate independently. That means you can set your schedule, decide what freight to haul, chose your price, route, and many more. 

SENSE OF BELONGING 

Truck drivers often feel lonely because of the long travel hours on the road. But they have a sense of belonging because of other truckers looking out for them. They know they have a family within the trucking industry to help them in times of trouble. Truck drivers also band together to help each other during traffic jams while advising each other. 

CORPORATION FILING: BENEFITS OF FORMING A CORPORATION

 Many entrepreneurs often assume corporation filing is costly, time-consuming, and stressful. But the reverse is the case. The benefits of incorporating your business typically outweigh any perceived disadvantages, and these benefits are unavailable to sole proprietorships. Do you want to start a trucking business? or already operating as a sole proprietorship, but wondering if corporation filing is right for your business? Global Multi Services explains the benefits of forming a corporation. Let’s dive in.

WHAT IS CORPORATION FILING? 

 

Corporation filing is a set of documents providing important information about the corporation. These include the name, address, shareholders information, business purpose of the corporation, and many more. Filing articles of incorporation is mandatory no matter the state it is incorporated.

BENEFITS OF CORPORATION FILING 

GENERATES CAPITAL 

Incorporated companies are allowed to source funds in the form of equity or debt. That means they can raise funds through the public or debt referring to bank loans or other forms of credit. Capital is raised in incorporated businesses easily through the sale of stock. They also attract many investors because of limited liability and the easy transferability of shares. These make them more reliable. Also, many banks prefer handling loans with incorporated borrowers.

ASSET PROTECTION 

 

A corporation provides assets protection to its owners than any other business entity. That means the shareholders are not personally responsible for the debts or liabilities of the company even if the corporation doesn't have enough money in assets for repayment. Asset protection is one of the main reasons many businesses chose to file for incorporations.

 

TRANSFERABILITY OF OWNERSHIP

 

Corporation ownership depends on the percentage of stock. This makes it flexible when compared to other business entities. Transfer of ownership is easier in a corporation because a shareholder may transfer his shares to anyone. Specific information about the transfer often depends on the agreement in the bylaws and articles of incorporation. For example, shareholders can sell their share if they want to leave the company. Similarly, if shareholders die, their stock can be transfer to their family or someone else.

 

TAX BENEFIT 

 

Corporations often have tax advantages. These include health insurance premiums, savings on self-employment taxes, life insurance, and many more. Although C-corporations are subject to double taxation, other tax benefits depend on how their income is shared.

 

CONTINUITY OF LIFE

 

Corporation’s existence does not depend on its owners. That means there is no limit to the life of a corporation since its ownership can pass through many generations of investors. If a shareholder dies or sells its share, the corporation still legally exists and will continue to do business as usual.

 

BUSINESS CREDIBILITY 

 

The shareholder often appoints experts to manage the day-to-day activities of the business. These improve accountability and establish business credibility. The availability of resources also makes it easy to offer good salary packages to employees, which attract the best talent available in the market. Incorporating your business also establishes trust with potential customers, employees, vendors, and partners.

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).

Why Corporate Filing Is Necessary for Trucking Business

 The trucking industry is very competitive, but it is growing substantially over the years and trucking services are in high demand. Starting a trucking business comes with a decision whether to incorporate it or not. Although corporation filing is costly and time-consuming, its benefits outweigh all the disadvantages. One of the most important reasons for a Corporation Filing for trucking businesses is to protect the owner’s assets and establish credibility.

 There are different legal structures to consider when incorporating your business. Therefore, you need to do thorough research and choose the structure that best fits your company. Incorporating your business in your base state help to reduce confusion and saves more money. Continue reading as Global Multi Services explain why Corporation Filing is necessary for trucking business. 

Benefits of Corporation Filing 

Access to Capital 

Corporations sell ownership and raise capital by trading their stock publicly. This helps them have more access to capital. Also, one of the criteria for borrowing money in many banks is by being an incorporated business. This access to capital helps many businesses grow and saves them from going bankrupt in times of need.

Limited Liability 

Corporations provide personal liability protection to their shareholders. That means the owners are not personally responsible for the debts and liabilities of the business. This is one of the main reasons companies choose to incorporate. For example, when a corporation is sued, the shareholders are not personally responsible for corporate debts. Thus, creditors cannot pursue their assets. However, in a sole proprietorship corporation, the owner’s assets and business assets are considered the same. Therefore, can be used to pay business debts.

Business Management 

Incorporated businesses have distinct business management. The shareholders are responsible for making decisions. They speak with the board of directors, who delegates their authority to the company's officers. These improve accountability, efficiency, and business growth. Corporations also have resources that make them offer good salary packages which attract the best talent available in the industry. The lack of structure and shared decisions in an unincorporated business can affect the company.

Tax Advantages 

Corporations enjoy tax flexibility such as medical taxes, savings on self-employment taxes, worker’s compensation, and many more. Although some corporations, like C corporations, are charged with double taxation, others, like S corporations, are not. 

Business Security and Longevity

Corporation ownership depends on the percentage of the company shares held by the shareholder. This makes the transfer of corporation ownership flexible, and the business also perpetuates for a long time. Although the transfer of ownership depends on the governing agreement in the bylaws and articles of incorporation, ownership of the corporation is often easy to buy and sell.  For example, if a shareholder dies, their stock can be transfer to someone else. Similarly, they can sell off their stocks if they want to leave the company.

Business Credibility

Incorporating your business establishes credibility. It builds banks, customers, and investors' trust. It also makes them believe the company has a positive image. 

Is MC Authority Beneficial for Trucking Companies?

 Have you ever consider stepping out of your comfort zone and getting your MC Authority after years of working for a trucking company? It is not a bad idea, but you need to have all the necessary skills and be fully committed to it. Having your MC Authority gives you many opportunities. These include running the trucking business the way you like, making decisions based on your vision, growing it at your own pace, and many more. Running a successful trucking business is beyond driving, and it is not for everyone. You need additional skills. These include business management skills, problem-solving skills, analytical skills, financial management skills, team-building skills, and many more. 

 

Many great drivers are deficient in these skills, which can affect the success of their trucking business. So, how do you know having an MC Authority is the right move for you? The decision is not something you should jump into because many drivers have taken the leap and have either failed or burned out. Therefore, you need to weigh your advantages. Read on as Global Multi Services takes us through the benefits of Motor Carrier Authority for trucking companies. 

Make You A Boss 

Operating under your MC Authority allows you to make decisions that suit you. You get to decide on the kind of load to take on and where you want to operate. It also gives you a lot of control over how much money you make and how far you want to go in the trucking business. But achieving all these isn’t an easy task. Having your MC Authority means you are no longer under big organizations with freight ready to be hauled. You must build your business and streamline your operations to build customer’s trust. That means spending time to build relationships with your customers and negotiating contracts with brokers and shipped. These ensure you have freight to transport, and your trailers are always full. 

 

Help You Decide Your Income 

 

With your MC authority, you get to decide your charges. You can negotiate better rates and search for better loads. When you are an owner-operator leased under a company or a truck driver in a company, you will have a fixed rate per mile. But with your MC Authority, you are only limited to the types of loads you take on. Although, it might feel unachievable, and thighs might be going slow. But it will get better over time, and you will get more loads to haul. Once you establish your business, it allows you to turn down not so good per miles rates and get better ones. 

 

Keep Your Profits 

 

Having your Motor Carrier Authority helps you keep the profits you made from your trucking business after paying expenses. All the efforts you put into establishing your business and long hours on the road make you more money instead of adding to someone else’s bank account. However, figuring out how to make more profit isn’t an easy task. You need to maximize your top-end revenue and cut your expenses. These will help you boost your profit. 

UCR Permit: The Cons of Being an Independent Owner-operator In Trucking Business

 Running a trucking company as an independent owner-operator comes with a lot of benefits. From choosing the type of company you want to work with, load to haul, to the amount, you charge per mile. You also get to earn more profit since the business is yours. The benefits are endless, but it also comes with a lot of work which can sometimes be overwhelming and tiring. These are why many truck drivers do not venture into the business despite the benefits it entails. Being an independent owner-operator is more than just driving the truck. It means you handle all the affairs of your trucking business. You are the CEO, Dispatcher, Safety and Compliance Officer, Maintenance Manager, and many more. You also need to obtain your UCR Permits, IRP Plate, IFTA, and other licenses. These give you a lot of work that could have you working for longer hours, especially when developing systems to make your business run smoothly. Keep reading as Global Multi Services explains the cons of being an independent owner-operator in the trucking business.

Finding Consistent Load

New independent owner-operators often struggle to find consistent load at a better rate. These happen because they are just developing their business, and brokers are still hesitant to work with them. Also, they have not built customer’s trust, and most brokers prefer to work with companies with good track records. Furthermore, there is a lot of competition in the trucking industry. As an operator, you will be competing with big companies who will take pennies to stay on top and other owner-operators who charge less. Growing your business comes with the responsibilities of persistently looking for new loads and negotiate your rates.

 

Building Customer’s Base 

 

Having few customers might seems reasonable at the beginning as an owner-operator. But it cannot sustain your business in the long term. As an owner-operator, you need to build your customer base, and can sometimes be difficult because many brokers have built trust with other trucking companies. Building a good customer base takes time and conscious effort to provide the best services for your customers. Ensure your clients are constantly supplying you loads, and you are meeting all their needs. Also, stay in compliance by processing your Unified Carrier Registration to obtain your UCR Permit.

 

Keeping Up with UCR Permit

 

Becoming an owner-operator means you must handle all your permits, invoices, and compliance documents yourself. These include UCR Registration, IRP Plates, UCR Permits, and many more. Big trucking companies often dedicate an entire department that takes care of their paperwork but, you must do it all on your own. Managing your business while also driving can sometimes be hectic. But using trucking management software can help you scan, track, and keep records of all your essential documents and paperwork. It also relieves you of the stress of staying up late and scarifying your downtime to sort out stacks of paperwork. 

USDOT Number: Safety Compliance For Trucking Companies

 One of the essential things for trucking companies is adhering to the rules and regulations laid down by the Federal Motor Carrier Safety Administration. These include obtaining a USDOT Number. Driver’s License, and many more. These guidelines are put in place to ensure truck drivers and other drivers on the road are safe. The FMCSA focuses on verifying operating trucks to ensure they are fully maintained. They also protect roadways by making sure trucks do not haul overweight loads that can damage the road. For trucking companies, remaining compliant with the DOT Number is more than legalities. It is a way to ensure your drivers are safe and your fleet is well maintained and in top shape. Read on as Global Multi Services take us through how trucking companies can stay in compliance.

 What is USDOT Number?

 

The USDOT Number is a unique number assigned by the Federal Motor Carrier Safety Administration to identify and track motor carrier safety information. This information comes from different sources such as audits, compliance reviews, investigations of accidents, and inspections. Every trucking company operating across state lines and transport people, or goods is required to have one. Trucking companies need to register with the Federal Motor Carrier Safety Administration to obtain their DOT number.

How To Stay in Compliance 

 

Test All Truck Driver for Alcohol and Drugs

 

The Federal Motor Carrier Safety Administration and the Department of Transportation require commercial vehicles drivers to adhere to specific drug and alcohol regulations. Drivers with CDL must be tested for alcohol and drugs regularly. These include part-time, intermittent, backup, international drivers, and other full-time workers in the company. Drug and alcohol tests should be administered in the following scenario: 

·         After an accident occur

·         Randomly throughout the year

·         Before employing a truck driver and it must be negative 

·         Drivers returning to duty after a failed drug and alcohol test 

·         When a driver is suspected to be under the influence of drugs or alcohol

 

Maintain A Clean Record 

 

Maintaining a clean record boosts your company’s safety ratings hence, increasing your revenue. The following documents are essential for maintaining a clean record. 

·         Driver’s logbook 

·         Insurance documents

·         Drivers record such as proof of CDL. 

·         USDOT Number and proof of inspection 

 

Focus On Truck Maintenance 

 

Trucking companies complain about the hefty paperwork and regulations. But most of these guidelines are put in place by the Federal Motor Carrier Safety Administration for the safety of the truck drivers and other people on the road. The following regulations can be put in place to ensure proper truck maintenance. 

 

Tire Inspection: Drivers should inspect their tires before and after every trip. They should check for damages such as cuts, foreign objects, cracking, uneven tire wear, and other damages. 

Avoid Overweight: Drivers must not overweight their trucks. Overloading the trailer can cause tire failure while driving, which can lead to severe accidents.

Avoid Overspeeding: Drivers must adhere to the speed rating. Exceeding the recommended limit can lead to tire failure, which can cause accidents.