Crash Course: How To Start A Trucking Company (MC, DOT, UCR, BOC3, State Permits, IRP, IFTA, 2290)

I always get at least 5 emails a day asking me “How do I start a trucking company” so I decided to make this crash course for you guys. We will talk about actual Authority registration, BOC, UCR, State Permits, IRP, IFTA, and compliance. All the links are below:

Hey guys welcome back to another video if you’re new to my channel hi my name is miranda and i teach about everything and anything related to the trucking industry and how to navigate it so if this is a topic that interests you feel free to subscribe down below okay so today’s video is actually going to be a crash course on how to start a trucking company if you

Have a semi truck and trailer the reason it’s only for a semi truck and trailer is because the registration requirements change depending on the equipment type so i decided to narrow this topic down as much as possible now i know some of you must be thinking well who’s actually looking to start a trucking company in a market like 2022 right now but you would be

Shocked at the amount of emails i get on this particular topic ready let’s go so i’ll be running through everything as quickly as possible just because of the time constraints of the video and i don’t want to bore anyone but i will be releasing a course in about a month or a month and a half a full course on how to open and manage a trucking company and that is

Going to be excruciatingly detailed the first thing you want to decide is of course what kind of operation you plan to run because the registration process will depend on it are you planning to be an interested carrier who is crossing state lines or an intrastate carrier who is operating within the borders of your state now something to note interstate doesn’t

Always mean that the truck is crossing state lines if you are an intrastate carrier who is operating within the borders of your own state but are picking up cargo that either originated in a different state or is finalizing in a different state you are an interstate carrier but for that i have another video which i will link down below another thing you have

To consider is what type of equipment will you drive will it be a reefer dry van flatbed what kind of truck is that a hot shot is it a sprinter van etc etc also what type of commodities are you planning to haul all these these factors will make a difference when actually doing the registration of your company once you make a decision on your operations i highly

Recommend forming a company now there are different ways to form it there is a sole proprietorship where you don’t really have to do much there is an llc there is a corporation now i will always recommend going for an llc because it provides the benefits of both the corporation and the sole proprietorship an llc will allow you to keep the business separate from

Yourself when it comes to liability protection but it is taxed like a sole proprietorship because an llc is considered a pass-through entity now once your company is formed the next thing you want to do is get an ein i recommend getting an ein even if you’re a sole proprietor and it’s completely free on the irs website don’t let those third-party providers dupe

You into thinking that you have to pay for an ein you do not once you have that ein it will allow you to open a business bank account where brokers can pay you directly now that the preliminary steps are complete it’s time to think about actually opening your trucking company now i am going to go to the board and i’m also going to share my screen it’s going to be

A really fun video okay so i broke it down into two categories interstate versus interstate so if you’re an interstate carrier right the first thing you want to do is you want to get a usdot number and an mc number this is going to cost you three hundred dollars now the question i get a lot is do you need a cdl or a truck a vin number to be able to apply absolutely

Not the application will ask you how many cdl drivers you plan to have and how many trucks trailers etc you plan to have it never asks you for the actual cdl or the vin number of the truck once you complete this step you need to register with the ucr again do you need a cdl or a vin number of the truck to do this absolutely not now something to note certain states

Do not participate in ucr so oregon is an example if you’re based in the state of oregon you will have to choose a nearby state such as washington or california to be able to register with the ucr it sounds more complicated than it really is but basically your base state would now be washington or california even though you are technically based out of oregon the

Next step is to activate the motor carrier the mc number by getting insurance and boc3 on file so it doesn’t matter what order you do it in but i recommend to get the boc3 first because it doesn’t require a lot of work to get insurance you have to shop around you have to call people you have to compare quotes and insurance quotes will depend on the radius of your

Operation the age of your cdl the age of your dot number what kind of commodities you haul so on and so forth now in terms of do you require a vin number or or a cdl to be able to get these for a boc3 no you do not require to have a truck or cdl but for insurance you absolutely do in order to get an insurance quote they will need your mc number they will need your

Dot number they will need the vin number of your equipment your cdl and so on and so forth so the next thing you will want to do is check with your state if there are any additional requirements that are set by your state some states have additional permits you must obtain before you start operating for example in california we need what is known as the california

Number so check with your state to see if there’s anything like that the final step is register for the new entrant audit yes once you get your mc and dot number you actually have to call the fmcsa and register for the audit next is the interest date carriers as an interest state carrier what you want to do is you want to apply for your dot a dot number is completely

Free so that’s the good good news and the second thing you want to do is obtain state required permits and documents there is no ucr or boc3 for an intrastate carrier however insurance requirements depend on your state some states have their own insurance requirements while others such as california they follow the federal requirements to be able to operate as an

Intrastate carrier within the state of california and just as a reminder the minimum liability insurance that you must have according to the federal regulation is 750 000 in insurance so once you get everything registered you need to move on to the next step for interstate carriers if you’re operating a vehicle which has a gross taxable weight of over 55 000 pounds

You have to get the 2290 form or the heavy vehicle use tax then you will have to get your ifta decals and your apportioned registration something to note you cannot get irp without paying this heavy vehicle use tax now in terms of interest state carriers all you have to do is pay that 2290 tax again if you operate a vehicle where the taxable gross weight rating is

Over 55 000 pounds you do not need ifta and you do not need a portioned license plates because you’re not going to different states now if you’re an interstate carrier who’s planning to run through states like new york new mexico kentucky or oregon or to deliver in those states or pick up in those states you will need state-specific permits here okay i know this

Was a lot but what i’m going to do now is actually i’m going to share my screen on my computer and i’m going to show you quickly how to go through all of these steps to be able to start your trucking company okay now let’s go through everything really really quickly just so that you know what you are doing so the first thing you want to do is obtain the dot nmc

Number or just the dot number for that you go to dot gov then you go to registration go down right here do to register click here and you click i understand proceed to registration and then it will take you to this urs website you will click new applicant you will click next and then you will fill out this application once you’re done with this and once

You have your dot number you can go to here all you have to do to register with the ucr is you’ll have to put in the dot number that you were assigned during the previous step and you’ll get that dot number right away again this is just for interstate carriers once this is completed you will want to get insurance and boc3 on file now insurance i cannot

Show you how to get it just because this is something you have to shop around for but in terms of voc3 all you do is you go to put in boc3 and click process agents right here and the fmcsa recommends these guys now the boc3 will require you to already have an mc number which you will get in a couple of weeks in the mail but there is a trick you can

Actually see your mc number sooner than that and all you have to do to be able to find it is about one to two business days after you fill out the application for an mcndot number all you have to do is go right here now this is the website i’m going to leave the link down below all you will do is you’ll put in your usdot number like i’m not a robot and search so

For example let’s use this usdot number and leave everything else blank i’m not a robot this is a big trucking company in illinois and you will see right away it’s going to show you everything the docket number is your mc number now this is going to show up on this website about two business days i after you apply for the authority before you even get that letter

Showing you your mc number something to note you will need this for boc3 now in terms of additional state permits this depends on your state so you’ll have to check your state’s requirements but what you can do is you can go to my website go to free tools and then state startup checklists and you will see this google drive that has all the states and the different

Requirements now it’s not updated uh just so that you know so double check i haven’t had the chance to update it but it’s going to give you a good idea now another thing you have to do is register for a new entrant audit a new entrant audit only happens if you’re crossing state lines meaning you’re an interstate carrier now in order to register for the new entrant

Audit you have to call this number right here now let’s go to the next thing the next thing is the 2290 heavy vehicle use tax i use rapid fire 2290 this is what i use right here it’s called 2290 rapid fire excuse me and what you will do is you will get started and fill out everything regarding your equipment and then you will pay the necessary fees in terms of ifta

And irp again i encourage you to go to the trucking made successful website under free tools under the state startup checklists what you will see is under every state okay let’s click on alabama for example you will see the alabama startup checklist and it will tell you where you have to go like international registration plan irp is done online so is ifta for

California it’s a little bit different ifta is done online irp is done by paper you have to mail in all your documents so be sure to check it out to see how to get your ifta and irp ready finally you want state permits so we have new york new mexico kentucky and oregon for new york all you have to do is go to oscar dot ny dot gov you will click enroll now and you

Will proceed to register for the new york permit which is good for three years depending on when you register now in terms of new mexico what you will want to do is go to this website i will leave a link down below and you will want to do this electronically so you click electronically and then it will take you to this page now what you want to do is you want to

Scroll down and register for a commercial vehicle account in terms of kentucky you want to go to i’m going to leave a link down below and you will want to click on apply for a kyu license so in terms of the oregon permit you have to go to oregon trucking online and then you want to click on the oregon motor carrier account application and you have to

Fill this out you have to mail it in and you have to mail it in with a two thousand dollar check which is going to act as a bond and this will give you they will give you that check back within a a year if you’re filing your oregon miles every single month yes you’ll have to file them every single month at first then they’ll give you that money back and this makes

It possible to apply for a permanent oregon account now in case you need a temporary trip permit you will call this office number right here and you can tell them about your truck they’ll ask for the vin number all of the information about the truck how many miles you’re planning to run and then they’ll take a payment via credit card over the phone and we’ll send

You that temporary trip permit but i do recommend filling out this application in order for you to be able to operate in oregon without having to call every single time okay i know you’re gonna hate me now but there is more to this madness now we’re going to talk about compliance and i divided this into the driver portion and the equipment or truck portion so on the

Driver’s side what you will need to get is you need a driver application now yes this is even if you are the only person within your company and you’re driving for your own company you need to fill out a driver application the second thing you need to do is you need to register with a random testing program the drug and alcohol consortium this is a requirement and

Before you actually start running you have to complete a pre-employment drug and alcohol test now another thing you want to do i know a lot of people don’t follow this rule but you really should do it is you have to check with the fmcsa clearinghouse to make sure that the driver you’re hiring or you have never been in trouble with the dot for any drug or alcohol

Related testing you will also need a medical card of course and your cdl now let’s move to the truck portion on the truck side you will need an annual dot inspection that has to be done annually for your truck and trailer for your equipment you will also need an electronic logging device unless you’re exempt which is pretty rare you will also need i’m going to

Skip here here you will need paper logs in case your electronic logging device breaks you need paper logs as a backup finally there is the most important part which is the dot folder which you will use for roadside inspections during roadside inspections the officers will want to see a couple of things so what has to be in your dot folder well you have to have

The annual dot inspection for your equipment the truck and the trailer you need your certificate of authority your irp registration your trailer registration if the registration all the state permits and insurance but for insurance it’s not just the certificate of insurance what you need is the form mc90 which your agent or your insurance provider can send you now

There are other things that i like to keep in the dot folder such as the heavy vehicle use tax payments the ucr the fact that it’s up to date and so on and so forth now this was really a general overview of how to start a trucking business us but there are a ton of other things to keep in mind and i’m going to read through this list there is the file maintenance

There’s the new entrant audit there’s the renewals the tax payments and fees the actual management of the company and so on and so forth unfortunately it’s impossible to fit all of that information into one two or even 10 videos but you guys know that i am always available via email even though my response time is a little bit slowed i’m pretty behind on emails

Right now but i always welcome questions so feel free to send me an email and i will get back to you it might take me a couple of days or sometimes a week but i will get back to you with an answer i really hope this video was helpful to you i hope it answered some of those questions that i keep getting and provided some insight into how to actually start i wish

You guys an incredible rest of the week and i’ll see you guys in the next video

Transcribed from video
Crash Course: How To Start A Trucking Company (MC, DOT, UCR, BOC3, State Permits, IRP, IFTA, 2290) By Trucking Made Successful