The transport and trucking business is a lucrative opportunity for anyone who wants to invest in an area that contributes immensely to the economy. Trucking companies always move raw materials from suppliers to producers and then deliver end products from the producer to consumers. Over 70% of products carried from one point to another in the US are ferried by trucks. So, if you are a potential owner-operator thinking of starting a trucking business, here are the tips to help you get started.
Craft a realistic business plan
In the same way, you can start a new job with a unique perspective and goals, you want to begin your new trucking business with a well-organized plan. Business plans serve as the roadmap to success and can be defined as the business expands. It assists you in staying organized, identifying your goals, articulating the value propositions and presenting potential obstacles.
Establish your business legally
Operating a trucking business as an LLC or properly structured corporation sets boundaries in your business liabilities and personal properties. On top of protecting your personal assets as a business owner, incorporation offers many tax, legal and business benefits.
When forming an LLC or corporation, you’ll need to follow these steps:
Get the necessary permits and licenses
Many states and local governments require businesses to have the necessary permits and licenses in place before getting into operation. Depending on your services and where you plan to operate the business, there are some permits and licenses you will need:
CDL(commercial driver’s license and any endorsement): all commercial motor vehicle drivers should have a CDL.
USDOT number: the FMCSA(federal motor carrier safety administration) uses the company’s unique USDOT number to identify companies when performing audits, investigations and inspections.
Motor carrier operating authority number: you’ll need to get several MC numbers for your company based on your operation.
BOC-3 filing; all motor carriers, brokers and freight forwarders are needed to designate the process agent that will file form BOC-3.
IRP (International registration plan): IRP redistributes commercial carrier registration charges in the US states.
Stay in compliance
Owning and running a trucking company means staying updated on time-sensitive filing prerequisites such as IFTA’s quarterly tax return filing and CDL multiple-year renewal. Failing to update these requirements will lead to a loss of good standing with the government or huge penalties.
Professional guidance from experienced experts and trustworthy resources during the trucking company start up phase of a company is vital. This will help you dodge several obstacles on your path to entrepreneurship. Enlist the skills of an accountant, a lawyer, and a task consultant to have all the financial and legal bases covered. Don’t forget to talk to successful trucking company owners for wisdom.
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