What do I need to start a trucking company in the U.S?
Starting a trucking company in the US can be quick and easy if you have the right advice. Many people come to the United States looking for independence, stable income, and fulfilling their personal and family dreams. The trucking industry in the US is an excellent opportunity to start the business of your dreams.
Below we share the steps you must follow to start your trucking company.
Address of your trucking company
First, you need the address where you will establish your company. It can be the address where you live or a different one; there is no need for a physical office. You should also be clear about the name you would like for your company. These data are the first that you must be clear about to start managing all the necessary documents.
To start your business, you must have your immigration status defined. If you are a resident or citizen, have political asylum, or are in the process of determining your status and obtaining an ITIN NUMBER, all you need is to dare to take that big step.
Define if the company will work Interstate or Intrastate
Deciding whether the company will work solely in the base state or out of state to work across the country. Having an Interstate trucking company means you can operate nationwide; having an Intrastate company means you will only be able to work in the base state. It is essential to define this modality because each has different regulatory permits, and the work possibilities vary.
Choose the figure to register the company
Choose which figure your company will have LLC, Inc., Corp, or DBA. With this clear, you can register it with the Secretary of State. You must keep in mind the concepts of each figure so that you make the best decision.
In an LLC company, you protect personal assets; the company’s owners are not personally responsible for the debts and obligations.
In a DBA (Doing Business As) company, the company registration is done under your name and Social Security. Financial responsibility is personal.
In a CORP/INC company, you protect your assets, and company owners make their distribution through shares.
To file and pay taxes in the United States, you must register the EIN (Employer Identification Number) with the Internal Revenue Service (IRS). The tax service assigns this unique number to business entities operating in the country. You can apply for an EIN by filing Form SS-4. The IRS accepts applications online, by phone, or through email.
USDOT or MC# Registration
The USDOT is a unique number and perhaps the most recognized by owners of transport companies in the United States. This number is assigned to each business transporting cargo and must be registered to the FMCSA (Federal Motor Carrier Safety Administration).
The MC# is a permit granted to companies that transport cargo out of state (Interstate) as long as they meet the requirements requested by the FMCSA.
Buy commercial trucking insurance
Buying commercial trucking insurance is crucial since it protects your truck and the cargo of total or partial losses, losses due to theft, or damage caused due to loading and unloading maneuvers. Remember that the insurance’s prime varies, and you can access the one that best suits your needs.
Taxes, licenses, and regulatory permits
Managing special trucking permits required by the state where your business will operate is vital. For example, if the company is Interstate, that is, it will leave the base state, you must process mandatory permits such as BOC-3, UCR, IFTA, Random Program, and Clearinghouse. If, on the contrary, your company is going to operate Intrastate, that is, only in the base state, you must be up to date with the IFTA Report, UCR, Franchise Tax, or Annual Tax Report.
Register the license plates of your truck and make the respective renewals whenever appropriate is a requirement to operate legally.
Remember that when you move from one state to another, you must change your license plate or plates, so you can travel without fear of being fined or having your truck confiscated. Depending on the state, this diligence must be done between 30 and 90 business days after the move. The cost of the procedure can also vary depending on the state and condition of the vehicle.
It will help if you have an excellent Dispatcher that guarantees daily and weekly loads for your business to prevent you from spending days or weeks out of service.
At first glance, this process may seem long and complex, especially since several steps can lead to mistakes when filling out the forms. That is why you must have the correct information and the appropriate advice to make the results agile and effective.
Fully complying with the previous steps will help you establish your business in the United States and allow you to consolidate it, thus providing economic stability for your family. And do you know the best of all? That you can start in the industry with an investment of $750.
There are no more excuses! At Personal Truck Services, we have created more than 1,300 transport companies. Therefore, we know very well how to carry out this process in the most agile and convenient way. Decide by being informed and having the best advice at no cost. Call or write us at (832) 3602067. You can also contact us at firstname.lastname@example.org where we will always be willing to help you with any concern.