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Step 1
Contact an insurance company or broker that specializes in trucking companies and request a quote for insurance. They will generally require information on your vehicles, drivers, type of cargo and distance traveled (interstate, intrastate, international, for example). Proof of insurance is required for a number of permits and filings that are required to start a trucking company. However, don’t secure your insurance too soon, because you will be paying for insurance that you can’t use until everything else is in place! Ask your insurance agent if it is possible to have your insurance effective date about 2 weeks after you secure insurance-that will allow you some time to get all of the other paperwork done.
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Step 2
Register your business with the U.S. Department of Transportation (USDOT).Trucking companies, commonly referred to as carriers, are regulated by the Federal Motor Carrier Safety Administration, a part of the U.S. Department of Transportation. All trucking companies are required to have a USDOT number, obtained by registering with the U.S. Department of Transportation. When you begin the registration process there are some things that you need to know about your trucking company. Those questions are listed here:Where will you be headquartered?What type of vehicle will be used?What will be your area of operation?Will you haul hazardous materials (hazmat)? If so, what quantities and types?Will you be leased to another motor carrier?Is the weight of the vehicle(s) over 10,001 lbs?Is the weight of the vehicle(s) over 26,001 lbs?Will you transport 16+ passengersWill you transport 9-15 passengers?Will you be based in Hawaii?Will you be a freight forwarder (take possession of cargo, but another company transport it)?Will you be a broker (arrange transportation without taking possession of cargo)?Will you be utilizing a tank to haul liquid cargo?Will you be hauling exempt cargo? (see 49 cfr 372.115 for most current listing)Some carriers will need to have an operating authority, commonly referred to as an MC number. This MC number is required for all carriers that will operate as “for hire” carriers (for a fee or other compensation) that transport passengers or federally regulated commodities, or arrange for their transport, in interstate commerce.
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Step 3
Develop your International Registration Plan, or IRP.When you license your commercial vehicle in your home based state, you have to fill out an IRP form. This form requires you to identify the U.S. states, Canadian provinces and Mexican states that you will be traveling in. This form also requires you to estimate the number of miles that will be traveled in each state. Your fee is based on the number of states and the number of miles traveled in each state. Once this form is filled out and sent in, you will receive an invoice. Once the invoice is paid, you will receive your license plate. This form will have to be filled out every year. After the first year, you will enter in the actual number of miles traveled in each state.Task: Contact your state Bureau of Motor Vehicle (BMV) office. Request an IRP application. Complete the IRP application and submit it to the BMV office. The BMV will send you an invoice. Pay the invoice. The BMV will send the cab card and license plate back to you.
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Step 4
Fill out your IFTA, or International Fuel Tax Agreement.You will need to contact your local state IFTA office. Some state IFTA offices are part of the state tax or state motor vehicle agencies. Your state website will tell you the contact information for your state’s IFTA office. The IFTA form is completed with basic truck and company information and submitted to the IFTA office to receive an IFTA sticker. This IFTA sticker must be placed on the vehicle. IFTA filings are required on a quarterly basis. The IFTA filing consists of documenting the number of miles driven in each state and the number of gallons purchased in each state for the quarter. You will, generally, send in a fee when you send in your quarterly IFTA filing-unless you get really bad fuel mileage!
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Step 5
Apply for your Unified Carrier Registration (UCR).UCR is a relatively new registration. This registration allows you to carry cargo across state lines. There is a simple on-line process available (the site listed in resources section) or contact your state public utilities commission office (PUCO) for the form. This form requires basic company and vehicle information.
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Step 6
Make sure that you meet all state-level requirementsMany states require registration or permits for carriers that will be hauling intrastate cargo or even for carriers that will cross the state line en route to another location. These states include Oregon, Texas, Kentucky, New Mexico and New York. For example, a KYU number is required for all carriers that travel in or through the state of Kentucky. This number is obtained by filling out a form and sending it into the state. They get their money when you file a quarterly report that indicates how many miles you drove in the state of Kentucky for that quarter. The list of states that have such requirements is subject to change and is not all-inclusive. Once you determine the states that you will be traveling in or through, contact the Motor Carrier office in that state. This office may operate under a different name but will generally be a part of the state department of taxation or motor vehicles.
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Step 7
Post the following signage on your vehicle:Company NameHome Terminal LocationUSDOT #MC #Last 8 digits of the vehicle VINTruck # (designated by you)Additional information may need to be in your door, such as your KYU number, if required.Task: Contact a vinyl sign company and commission signs for your truck.
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Step 8
Carry all of your paperwork in your vehicle.The transportation industry is a heavily regulated industry, which almost by definition means a LOT of paperwork.Documentation that confirms that you have your USDOT #, MC#, UCR, IRP, IFTA and insurance are required to be carried in the vehicle. Any required permits or filings for individual states will need to be carried in the vehicle as well. Duplicates will also need to be on file at the home terminal.Driver’s Daily Log Books-Your driver will need to complete, on a daily basis, a driver’s daily log. This will show how many hours and how many miles a driver drove, including cargo carried and starting and stopping points. The current plus 7 previous days logs must be kept in the vehicle. Older logs may be sent to the home terminal on a regular basis or dropped off by the driver.Daily Vehicle Inspection-Your driver will need to complete, on a daily basis, a vehicle inspection report. Standard driver's daily logs incorporate the vehicle inspection on the form.Bills of Lading-You will need to have bills of lading that you driver can fill out indicating what cargo is being transported, where it was picked up, where it will be delivered, who the shipper is and who should be billed for the service of transporting the cargo.Task: Contact a printer and commission forms for your trucking business.
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Step 9
Take care of these various steps for documentation.Sign up for participation in a Drug/Alcohol program-which will provide random and post accident drug tests.Create or sign up for participation in a safety program.Create or sign up for participation in a maintenance program (includes preventative maintenance, annual inspection and repairs)Create or sign up for participation in a Log auditing program.Create an accident register-documentation of any accidents that vehicle is involved in-regardless of who is at fault.Document vehicle information-VIN and gross vehicle weight.Document all dispatch data-listing when, for whom, where and what were shipped to whom and where.Document fuel purchased-listing quantity and location (fuel receipts will fulfill this documentation).
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Step 10
Make sure that you have all of your driver information on file.Perform a department/bureau of motor vehicles search on your driver, for all states that he/she has held a license in for the past 3 years. This will have to be re-done every year for all states that your driver has held a driver’s license in for that year.Require a medical examination for your driver. A copy of the medical card will need to be on file at the home terminal (the driver will keep the original with him/her)Perform an employment check on your driver.Set up a pre-employment drug/alcohol test for your driver.
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Step 11
Once you have all of these, and any necessary state-specific, requirements in place...you are ready to go trucking!
Comments
cmflora said
on 10/31/2008 No you do not need them registered to your company. When you speak with your insurance broker, explain that you are freight forwarder and that you need cargo insurance and any required liability insurance (which may vary depending on the state and the type of cargo/equipment). If you have any other questions-just let me know! Thanks for reading.
dannyal said
on 10/27/2008 Question: Do I need to have a truck and trailer registered to my company in order to acquire liability insurance to ship product. I plan on outsoucing all my frieght to owner operators. My company is in california