Truck Business
Content
Puntos a conocer acerca del trucking business
Defini nombre de la compañía
Escoger si debe ser LLC o DBA o solo manejarla con tu nombre
Luego que tienes la compañía necesitas regristrarla en el estado donde vives
Necesitas obtener el Federal ID Number, no debes usa el Social security number
como FIDN para tu compañia al menos que quieras corres riesgo de robo de
identidad.
Permisos y documentos necesarios para el negocio
IRC ( International Registration Plan)
IFTA (international fuel tax agreement)
FMCSA (The Federal Motor Carrier Safety Administration)
Federal DOT Number and Motor Carrier Authority Number
UCR (unified carrier registration)
Otros permisos
IRC
Es un acuerdo de reciprocidad Entre los estados de los Estados Unidos,
el Distrito de Columbia y provincias de Canadá que prevén el pago de derechos
de licencia sobre la base de la flota según la distancia recorrida en varias
jurisdicciones.
Para registrarte en Florida deberas hacer lo siguiente:
- completa IRP, FLORIDA APPLICATION, SCHEDULE A & B (Forma HSMV
85900). Lo pueden ver aqui:
http://www.flhsmv.gov/dmv/forms/bmcs/85900.pdf
- si no se entiende como rellenarla aquí están las instrucciones:
http://www.flhsmv.gov/dmv/forms/bmcs/85901.pdf
requisitos: tener un transporte superior a 26000 pounds
IFTA
Es un acuerdo entre los 48 estados de los Estados Unidos y las
provincias canadienses, para simplificar la presentación de informes de uso de
combustible en los vehículos de autotransporte.
Una compañía operadora con IFTA recibe una licencia IFTA y dos calcomanías
para cada vehículo. El vehículo presenta un informe trimestral de impuesto a
los combustibles. Este informe se utiliza para determinantes la devolución de
impuestos netos y la redistribución de los impuestos que fueron generado por
los estados donde recorrió el transporte.
Requisitos para optar por IFTA
-tener un lugar establecido de negocios en la Florida desde el que se realizan
las operaciones de autotransporte
-kilometraje debe acumularse en la Florida
-sus registros de operación de la flota deben mantenerse o pueden estar
disponibles en la Florida
-debe operar en almenos en otro estado o jurisdicción IFTA
Para registrarse dejo el link para que vean el manual para ello
http://www.flhsmv.gov/dmv/forms/bmcs/85920.pdf
Este otro link es la forma(BMCS 85920) que hay que llenar para aplicar a IFTA
http://www.flhsmv.gov/dmv/forms/BMCS/85008.pdf
Si quieren mas información pueden llamar a Bureau of Motor Carrier Services
Customer Service line at (850) 617-3711.
DOT NUMBER
La Patrulla de Carreteras de Florida, Oficina de ejecución comercial del
vehículo (CVE) y la Administración Federal Motor Carrier Safety (FMCSA), han
puesto en práctica el Programa de Registro de Autotransportes de la
Interestatal y autotransportistas intraestatales. Es obligatorio que su empresa
obtenga un número USDOT y mostrarlo en todos sus vehículos comerciales
(CMV). Una vez que reciba el número DOT, deberá colocarse en ambos lados
de la unidad, en un color que contraste con el fondo del vehículo, y el número
debe ser lo suficientemente grande como para ser legibles desde cincuenta
metros del vehículo.
El número USDOT sirve como un identificador único para el seguimiento de
seguridad de una empresa como seria la información obtenida durante las
auditorías, revisiones de cumplimiento, investigaciones de accidentes e
inspecciones.etc…
Formato que aplica para el DOT en el siguiente link
http://www.flhsmv.gov/fhp/cve/DOTNumberApplication.pdf
la oficina que tramita esto es
FMCSA (The Federal Motor Carrier Safety Administration)
puedes acceder a esta pagina
http://www.fmcsa.dot.gov/
de todas formas pueden llamat a este numero 1/800-832-5660 or e-mail
[email protected] para asistencia.
FMCSA Get Authority to Operate (MC Number)
En general, A las empresas se le requiere una autorizacion para estar en
un estado a otro (número MC) además de un número DOT
La Autorización para operar FMCSA se identifica a menudo como "MC", "FF" o
"número MX", según el tipo de autoridad concedido lo que Es. A diferencia del
proceso de solicitud Número USDOT que es unico, una empresa puede
necesitar obtener múltiples Autoridades de funcionamiento para apoyar sus
operaciones comerciales previstas.la Autoridad de funcionamiento determina el
tipo de operaciónes que puede dirigir una empresa y la carga que puede
transportar.
Es importante antes de aplicar saber la actividad específica que se va a
desenvolver porque hay varias autorizaciones
En esta página puedes ver los tipos y seleccionar el formato para completar la
operación según lo que yo vi pienso que seria el modulo Freight Forwarder
Authority - Form OP-1 (FF) Instructions pero seria de evaluar.
http://www.fmcsa.dot.gov/registration/types-operating-authority
El proceso dura mas o menos de 25-30 dias laborables se puede hacer por
internet
Hay otro número que seria el MT pero es si vana reparar tanques o soldar
vehículos de transporte
Determine how your trucking business will operate.
Trucking businesses operate by bidding on and fulfilling transportation accounts
and contracts. Most trucking businesses usually operate in one of two formsthe difference lies in how they acquire drivers to fulfill their accounts and
contracts:
Sub-contracted drivers: Under the first option, you run your business
using sub-contractors as drivers. Although you, as the business owner,
run the business and receive the contracts, your drivers are not actually
employed by your company. This option cuts down on start-up costs,
insurance costs, and required equipment. On the other side, this option
gives you less control over your drivers and cuts into your profits.
Privately-owned drivers: Under the second option, you privately run your
business and all operations. You use your own equipment, pay higher
insurance prices, and hire a fleet of private drivers as employees. This
option gives you total control over your business and its employees, and
promises the most return on profits. On the downside, this option
requires a great deal more start-up capital and operating costs.
Follow the traditional steps to starting a business.
As with any new business venture, first understand the basics of starting a
business, and then research the additional steps specific to your field. After
yo've determined what type of trucking business yo'd like to start, follow
these 10 Steps to Starting a Business for more information on financing your
business, hiring employees, and complying with tax obligations.
Comply with all trucking-specific business licenses, permits, and forms.
In addition to the general federal and state requirements, there are tax, license,
and permit regulations that apply specifically to the trucking industry. Depending
on the type of trucking business you plan to run, several important requirements
may include:
Federal DOT Number and Motor Carrier Authority Number' Understand
your requirements and apply for these certifications online at the Federal
Motor Carrier Authorit's website.
Heavy Use Tax Form (2290)' Comply with tax regulations related to the
heavy use of U.S roads with IRS Form 2290 .
International Registration Plan (IRP) Tag' Understand your requirements
and obtain IRP tags by visiting your stat's transportation website and
their IRP portal.
International Fuel Tax Agreement (IFTA) Decal' Understand your
requirements and obtain IFTA decals by visiting your state's
transportation website.
BOC-3 Filing - Use a processing agent and the BOC-3 filing
secure and maintain active operating status.
option to
In addition to these operational requirements, if you chose to employ private
drivers, they'll need to obtain special drivers permits or endorsements, such as
a commercial driver's license, to legally operate your vehicles.
Each state has a portal dedicated to commercial transportation. For example,
Idaho's government website has a Trucking Portal that has detailed information
on commercial driver's license requirements, rules and manuals, safety
information, licenses and permits, taxes, and all other related issues. Before
you start your trucking business, be sure to visit your state's transportation
portal to help understand the required regulations and assistance your state
provides.
For more information on the regulations facing the trucking industry, visit
Business.gov'sTransportation and Logistics guide. Because these regulations
can be confusing, you may decide to hire a compliance professional to help
make sure all requirements are met.
Obtain the necessary insurance requirements to sustain your business.
The nature of the trucking industry imposes strict insurance requirements on
businesses. Because you own and oversee the operation of commercial
vehicles, your insurance requirements will cost more than many other
businesses. To fully understand your insurance responsibilities, discuss them
with specialist in your area.
The following guides provide more information on types of business insurance
and your requirements:
What Type of Insurance Do I Need?
Finding and Buying the Right Policy
Protect Your Business With the Proper Insurance
In addition to your insurance responsibilities, your employer responsibilities
require you to comply with health and safety standards and regulations. The
U.S. Department of Labor's Occupational Safety and Health Administration
provides compliance assistance for the trucking industry to meet these
expectations.
Find and buy the proper equipment to get started.
If you choose to operate a private fleet with your own drivers, you'll need to
purchase commercial vehicle(s). Depending on your start-up capital, you'll need
to determine how many vehicles are reasonable. While many businesses start
small, as your profits grow you can always add to your fleet. When choosing
what commercial vehicles are appropriate, consider the type of freight you plan
to carry. Different types of cargo require different equipment. For example, if
you'll be transporting food, you may require a refrigerated truck or if your cargo
is oversized, you may require a flatbed truck.
When making your selection, also think about the environmental considerations.
The Small Business Matters blog, Greening Your Business Fleet - A Five Step
Approach that Can Save You Money, has tips that can help you make an
environmentally friendly decision while helping your business's bottom line.
Equipment Leasing: Weighing the Pros and Cons provides insight into choosing
to purchase or lease equipment for your business.
Build up your client base to obtain transportation accounts and contracts.
The competitiveness of the trucking industry makes receiving contracts difficult.
As a start-up business, you most likely will not have the reputation required to
receive large accounts. Many trucking businesses start small, utilizing local
contracts and small business trade shows, to build up a client base. As you
successfully complete these jobs, you'll be able to grow your business and
contract larger jobs.
Business.gov's blog on Tips for Growing New Markets on a Tight Budget has
more information on successful advertising techniques.
General Cash Outlay for Operating Authority
300.00 MC# FMCSA Application
1250.00 Insurance Primary Liability and Cargo
1000.00 Down Payment on a new to fairly new Trailer
500.00 Tax Tag Title
100.00 Compliance Services providing Consortium for random drug and
alcohol screening
100.00 If you chose to use a Compliance Service to set up all the other
compliance paperwork
12.00
New Mexico Weight and Distance Application 2.00 and 10.00 per
Certificate
10.00 New York Application and Sticker
20.00 IFTA Application and Sticker
3,500.00 Roughly is the cash layout in general on average to make the switch
Heavy Highway Use Tax may or may not be due, as already owning your truck
you should know by now it's about 550.00 annually Form2290
California State Application is no charge if you have not run miles
under you authority
Kentucky's Application is free for the KYU
Any one of these may have change, but these prices are fairly current at the
time I'm posting the material 1st QRT 2009
One of the first things you'll want to concern yourself with is what is my
responsibility at the Authority level, what should I expect to earn and HOW" am I
going to do it. Here's a few things to keep in mind and a little bit of what happen
to me at the Authority Level
III Business responsibility: This includes but is not limited to the previous
responsibilities of the load and the unit, the total responsibility for the creation of
the business, the structure of its services, the range and scope of the business,
the choosing of all services to the business, all legal requirements, employment
requirements, compliance requirements, record keeping e.g. maintenance,
driver logs, qualification and medical/drug and alcohol screening and random
test, filings, taxes, penalties, legal injunctions, negotiating of all contracts
involved in the general day to day business, setting rates, finding loads, gauging
the market, research and development “which is by the way is what you’re
doing now, permits, buying and selling of equipment, trailers and other load
securing devices, recovery in breakdown situations, training, office and location,
rents, utilities, and all other overhead financial responsibilities, and the list goes
on and on and on.
One of the main things to continue to bear in mind is, If you have all this double
the responsibility it should go without saying that you should be paid double of
what you are paid at the company level. I did nothing but math and
Spreadsheets the whole time I owned equipment, and over and over again I
found that those that did not have a working knowledge of the market were paid
as such that after their expenses they were making in most cases half of what
the company drivers make. I'll be showing you some of those numbers. Point is
it should never be and the shame is that in an average market with a high
demand for truck it never should happen.
Authority stage: The decision to get my own Authority came as somewhat a
surprise and carried its fair share of a mystery to me; I had left Panther thinking
the grass was greener on the other side over at Tri-State. It wasn’t, I think
maybe I could have stayed but I was already use to freely finding my own loads,
at least outside the service area and sometimes inside all depending on the
situation but there was, let’s just say, a different kind of environment there for
that. So it got me to thinking, maybe God is putting out a challenge for me, and
as you can tell I’m always up to it if the Lord “opens the door” so I check the
bank and they said “No!”, I was some what relieved . I’d just stick it out and who
know what the future would hold. But I remembered I’d been with the Credit
Union for a long time, so I thought Why not try, turns out, they help me get the
loan for the trailer. So the door was open and three weeks later I was on my
own Authority and the Lord bless me to learn so much I can’t list it all here, so I
decided to write a book, so here it is.
The process for obtaining your own Authority
Federal Common and Contract Operating Authority
If you were a local distributor of some type of goods that never leave the state
you don’t need Federal Authority. You may need state authority, so check with
your state. If the same local freight goes out of the state or comes into the state
from out of state, you’ll need Federal Authority.
What is Interstate Operating Authority: Authority is permission from the Federal
Motor Carrier Safety Administration to haul freight passengers or equipment that
originates from one state to another state, which means you have complied with
the requirements set forth by the FMCSA for Operating Authority.
Follow this link for any questions on Federal Operating Authority FMCSA FAQ
Operating
Authority
Federal Common Authority:
If you are open to the public i.e. running loads through brokers, shipper etc. that
go from one state to another state, you don’t own the freight, your broker
doesn’t own the freight, you are expected to insure the freight, this type of
authority is commonly referred to as Common Authority. With Common Authority
you are open to the public and are liable for insuring the load, the general
public, the value of your equipment and the equipment or property of others in
the event you are at fault in an accident. When you contract with a broker to
haul a load, you agree to insure the loss of any part of the load, the broker is
required to have proof that you do in fact have Cargo Insurance for the amount
of coverage needed for the load, this make them a certificate holder. In the
event of a loss the insurance company will pay the carrier and the carrier will
pay for the losses to whomsoever the owner of the freight is. If the broker
requires you to add them as an additional insured the request has to be
approved through underwriting of the insurance company. If approved as an
additionally insured, in the event of a loss the broker is then paid by the
insurance company and is responsible to pay whomsoever the owner is of the
freight.
Federal Contract Authority:
Let’s say you only haul loads for one company that owns the freight that goes
from one state to another state and you are only responsible for hauling it, the
company is liable for any loses. In this case you are not required by DOT to
carry Cargo Insurance; but you must insure the general public and the value of
your equipment and the equipment or property of others in the event you are at
fault in an accident. This type of authority is commonly referred to as Contract
Authority. However, if the company requires you to pay in the event of a loss
due to negligence or carelessness on your part you will then be required “by
that company”, not DOT to carry Cargo Insurance. In which case whether you
have Common or Contract Authority you are on the hook for the losses if it’s
your fault.
Now some smart Truckers out there suggest you get both, I’m not that smart, I
always say get what you need. There logic is that some states exempt you from
taxes on certain purchases which could save you thousands of dollars if you
have Common Authority. Please, check that kinda thing out with your State; it
just may only apply to the good folks of Kansas I guess. Don’t get all rapped
around the axial about it though.
US DOT Number
DOT Number just like you have to have a social security number for your
person, in transportation you have to have a Department of Transportation
Number, and like a social security number doesn’t give you permission to drive
neither does the DOT number give you permission to participate in interstate
commerce, it’s just a number that all federal information about your company is
accessed by. Go online FMCSA DOT Registration
fill out the questionnaire, obtain your PIN number, your DOT number will be
issued immediately, it’s all free and you’re ready to get your MC Number.
Motor Carrier Number MC
The MC Number is to your trucking business what your CDL is to Driving a Big
Truck. It gives you Carrier status and Interstate Operating Authority. To get an
MC number go online to FMCSA DOT/MC Authority Registration Assisted or
Unassisted fill in the blanks for the online form, take out your credit/debit card
and shell out $300.00. About the same time, work out the details with your
prospective insurance company for you insurance. You’ll need two months
payments to get started, so figure about $1200.00 to $1400.00 depending on
your driving record and insurance conditions. In about two weeks your number
will issue, it will be in the inactive status until your insurance company sends
them the proof of insurance. By calling FMCSA you can know when it becomes
active. You have to have a copy in your possession to do business, if you can’t
wait for it to come in the mail you can have a copy emailed or faxed to you; its
$40.00 to get a copy; there’s only one man and his name is Don. The support
folks at the FMCSA will give you his number. Pay the man, he’ll email or fax it to
you, and you can go pick up a load that day!!! Hopefully you will have
completed the rest of the stuff on my list
BOC-3 "Process Agent"
FMCSA Reg. CFR 49 pt 366 BOC-3 A process agent is someone who may be
served on your behalf with court papers in any proceeding brought against you
as a motor carrier. In order to obtain your authority this requirement must be
met. Boy once you file that registration application those BOC-3 companies
gona be on you like ugly on a ape, they’ll call email, fax, and if you're in their
city they might knock on your door. Here look, there’s a whole page of them
listed on the FMCSA site so you can beat them to it if you want.
FMCSA BOC-3 Process Agents
They all want to charge about 25-50.00 bucks just to be the one that can be
served on you’re behalf. They already know the law requires you to have one so
just get em paid and be done wit it.
Insurance Requirements to have your Authority
To run your own Authority you have to have $750,000 primary liability and
$100,000 in Cargo. If you only have the bare minimum coverage you’ll expect to
pay around $650.00 a month and about $50.00 per $22,000 more in cargo
coverage. I suggest you have more cargo. I had 250,000 in cargo. I was
allowed to carry high dollar loads when it became necessary. I’m not saying you
need that much, and besides if the circumstances are just right you can call
your insurance provider and request an additional amount of insurance before
you agree to a load over your coverage amount.
This would be in the form of an endorsement to your current insurance contract
and would have to go to underwriting for approval. The insurance companies
will only allow this maybe a few times a year. If you keep asking, their going to
start requiring that you have a higher coverage amount in cargo insurance on a
permanent basis. My problem was most of my loads booked toward the end of
the normal business hours or after, so when the shipper needed it, they needed
you to have it now! And they need you to go get the load now! So there’s no
time to wait until you’re insurance company opens the next morning to add it. If
the broker is scrambling to find a truck with the insurance requirement and if
you can’t get coverage now, they’ll usually get off the phone. If they know I
have the proper coverage, but don’t like my rate, chances are they’ll have to
come back to me anyway.
Did I pay dearly for that potential? Yes I did, but I knew I could make it up on
about two high earning loads. Should you do that? That’s a personal decision
you’ll have to make. Later we'll talk about Supply strategies, which is when
there are more trucks than freight in an unusually long downturn in the market.
When that happens you began to realize, sometimes it’s better to cut your
expenses to a minimum than to be forced to close the business.
But I would caution you!!! If you take a load say, that’s $200,000 in value and
you only have $100,000 cargo insurance, and you lose that load, the insurance
company will penalize you by only paying 50% of the coverage you had. That is,
they’ll only pay $50,000 minus your deductable, i.e. deductible = $1,000 they'll
pay $50,000-$1,000=$49,000. Now in this case you’re on the hook for the rest
$151,000 total for the load you just lost. The insurance companies can and will
do this as it is already written in your contract under the “Co Insurance Clause”
and I bet you didn't even know that. How many Truckers do you know actually
read those kinda things?
Get insurance quotes, get insurance, when they report insurance to FMCSA
your Authority MC Number becomes active. You are required to decal your
company name on the sides of your trucks, also DOT, MC, VIN (certain states)
and any other state required decals, IFTA on sides and NY HUT sticker on front
fender seen as truck approaches.
UCR the Unified Carrier Registration replaced the old SSR Single State
Registration Call your state DOT; it’s about 40 bucks one truck.
Kentucky KYU
form online at Kentucky DOT KYU Application Kentucky Trucking
Application: Form TC 95-1 “accepted only by mail” it’s about 10 bucks.
New Mexico weight distance
If you Google New Mexico weight and Distance Tax Permit you’ll find the Form
MVD 10995 PDF New Mexico Weight And Distance Application , fill it out send
about 2.00 bucks per permit.
New York HUT Highway Use Tax
application online NY HUT Application , about 20 bucks.
California Motor Carrier Permit
is online at California MC Permit Online Application
As with any of these applications don't let the look of application intimidate you,
most of it doesn't even apply to you , just go down through it carefully and you'll
find it's really not difficult at all. There is a phone number to call right on the
application itself if you have any question, I called and they were very helpful
and I don't remember going through any prompts. If I remember they picked
right up. If you haven’t run any miles in California yet, I don’t think there is a
charge for the application, call them to make sure.
Oregon Weight and Distance Permits
These are obtained trip into the state of Oregon, if you run that area all the time
you can pay a one time fee which allows you to travel the state year round, but
it up around $2,000 bucks. If you’re not traveling there on a regular basis you’ll
want to opt for the occasional permit.
Oregon will set up your account on your first entry, get your weight distance
permit “before” entering the state Oregon DOT Oregon DOT or call 503-3786699 they’ll assign you a file number after you register by phone.
Online http://www.oregon.gov
Compliance Services
Help with New Carrier New entrant Audit driver files, Medical files, Qualification
files and Drug and alcohol. They also provide Hazmat Emergency Plans and a
host of other compliance services. Find a compliance service pay about
$100.00 bucks to get in the consortium for drug and alcohol testing. It’s the law.
The other services are a choice, I used Foley Services I was very pleased and
would refer them to any carrier.
Call or go online to your state IFTA usually found on DOT DPS or DMV site for
your state.
IFTA Briefly Explained
In addition to IRP which registers you to run in each state you are also charged
by each state based on the amount of fuel you burn in their state. You’ll be
charged by almost every state you burn fuel in. If you buy your fuel in a state
which already includes the tax in the fuel purchase, they don’t charge you
based on the miles you run in their state, if you buy just the right amount of fuel
for just the right amount of miles in every state you won’t owe anything, but you
still have to report it, besides, that probably won’t happen in a lifetime, and they
know it. International Fuel Tax Association “IFTA”: every state has one; they
collect from you based on your fuel receipts and the miles you submit for all
states.
They then send just the right amount you owe to each state based on the miles
you ran in that state and the fuel you bought or didn’t buy there. You have to
renew the IFTA sticker every year and put it on the side of your truck. It and the
application is 10 bucks, don’t get cancelled for a non payment it’ll be 100 bucks
to redo another application in some states. You submit an IFTA report and pay
every quarter, if the paper work is a little bit more than your busy schedule can
handle you’ll need to get a service to help you. . IFTA Preparation
Your Fictitious Business Name
Most likely your state will want you to register your business name and entity in
their state. I think it was like 10 bucks in Washington but I think its like 100
bucks in Oklahoma, after that they make you pay taxes on the miles you run out
of their state or into their state while doing business i.e. under a load. That’s a
state tax not IRP, but if you don’t run any miles in their state when you renew
your IRP “that’s registration” at end of year; instead of declaring that you ran
let’s say a 1000 miles they’ll say, “oh well, since you didn’t run any miles in your
own state you have to use estimated miles chart”, which charges you like well
over 20,000 miles the IRP taxes alone for that state will come out over 200
bucks, so its better to do a little running in every state you list on your IRP,
especially the state where you base plate IRP or you’ll pay estimated taxes on
miles you didn’t even run.
HAZMAT
The first step in the process is to get to the Hazprint site online for the
Transportation Security Administration, a governmental agency that checks your
background to make sure you're not a terrorist or something. There you'll find a
city and state where you can walk into there office, do the application and have
your finger prints taken. Don't worry most places don't even use the black stuff
anymore it's all computer imaging cool. You just lay you grimmy little DB's on
the glass and whaola! it's done.
Getting the Hazmat Permit will open so many doors of opportunity for you you
would not believe it, I went the whole first two years running my own authority
thinking my insurance would skyrocket if I got my Hazmat Permit, as it turned
out I ended up going with a new provider and my overall cost including my
cargo and primary and the Hazmat was all about 70.00 bucks less than what I
was already paying. Now ain't that a blip.
By far the hardest part of any process for anything I ever did in all of trucking
was finding an underwriter that would write for an independent that really could
not tell them exactly what he might be carrying. I started the process in about
September of 2007 I think and finally ended up getting insured in about May of
2008. I might need to check those dates. It probably won't take you that long. I
went through about 5 different Insurance agencies trying to get an agent that
would finally chase it down for me. My search landed me at Clinewood
Agency Which is the insurance company I refer you to on the Business Product
Page, Others had pursued Great Western Casulty on the matter and didn't
follow up, but they did, and we got it. the primary problem was figuring out how
to assess the risk on a one man operation that could not really know exactly
what he might carry. So we all agreed I'd do about 12 loads a year on some
general Hazmat and review it at the end of the year to see if the products would
be the general kind of hazmat I expected, like paint, corrosives and this kind of
stuff you would throw on a van.
Once I got my Hazmat insurance I was ready to get a Hazmat Emergency Plan
which is what you have to have to apply for the Hazmat Permit. This is most
involved and too complicated for me, but I found out my Compliance
Company Foley Services offered the service I jumped on it , It was 450.00
bucks but for the time and energy I would save I think it was worth it, and again
that's conservation of time. Once you're out there busting it on loads on a day to
day a Hazmat Plan is the last thing you need to be worried about. Here's one
thing I know, most guys won't take the extra step to do Hazmat, which set those
of you that will miles ahead of them.
Unfortunately I got out the business before I could make good on my Hazmat
investment, but I'll give you the final steps. Next go to the FMCSA site and pull
down form MC 150-B which allows you to report your Hazmat status on the
federal level this form may or may not be current so double check at
the FMCSA help line ahead of time, at 1-800-832-5660. You'll also need to
update your original MC 150 and your DOT status on the SAFER site
Now that you have all the bases covered on the FMCSA side there is the
PHMSA side to tackle.
The Pipeline and Hazardous Material Safety Administration creates and
enforces all the handlings of all hazardous material shipments.
There are two levels of requirements
Training Requirements
Placarding requirements
First the training requirements for an Independent. Like the compliance for
FMCSA you'll have to document that you trained yourself according to all the
training requirements of the PHMSA 49 CFRand create a certificate that you
must carry on the vehicle to show that you received training for your certification
within the required intervals. As you add on drivers you must insure they have
the equivilent training to the standards of the 49 CFR and are awarded a
certificate of acheivement within the time intervals of the reg..
There are several level of training. the good thing is, all the regulations of the
training is offered in the 49 CFR which is the Regulation bible for all Hazardous
material training. However to ease your burden a bit there are bite size levels of
training offered through the PHMSA site some for free others on a cost basis.
These are the categories of training required
FMSCA security awareness
General Hazardous Material Awareness
Safety Training
Function Specific Training "depending on what you haul"
Driver Training as per 49 CFR 177.816
There are lots of training materials offered by PHMSA that will assist you if you
have a classroom of students as it would be for orientation. These materials are
offered through the PHMSA site
Training Materials
Electronic Services for hazardous material training brochures which are mailed
to an address
Library Services Online are training materials which may be downloaded or
printed online
There is also a 25.00 CD for the training which is offered through
the PHMSA site
Once you have made yourself available to the training you are required to have
through PHMSA you must document all the levels of training as you did for your
compliance and qualification file for FMCSA. You'll need to have this
documented audit ready according to the intervals laid out by the PHMSA.
The next level of qualifying to haul hazardous materials is the registration for
permit level. Whenever you have to placard a load for hazardous material you'll
have to be registered with thePHMSA to do so. There is an application and a
fee which is set by a fee table depending on what you are carrying and the size
of your company. Once you obtain this registration for your company you can
copy the registration certificate and put it on each truck that will haul Hazmat.
The application is online at the PHMSA site and the fee table. There is an online
application and pay option available which allows you to complete the process
online and have the Permit faxed to you immediately.
Trucking Business Start Up Plans To Become A Company Driver
Operator Operating Authority
Lease
Running Expedited
Expedited loads are loads that usually have to be run straight through for
earliest possible delivery. The market for expedited started as many loads either
missed certain items in filling the order, or sent the wrong items. Suddenly the
precedence to get the right or missing shipment to the customer becomes in
some cases a matter of keeping the contract to continue doing business with
the customer. In an average market finding available trucks can be very difficult,
and the competition from other trying to find those same trucks can be fierce.
This is why the expedited market will always continue to thrive. There are
always things that go wrong that create a very high precedence on
loads.Sometimes machines go down, or management makes a mistake, or a
more profitable contract order had to suddenly be filled, which in turn puts the
burden of the rush on a less important customer.Even in some cases with very
large companies the transportation department has been allotted a budget to
work from. If they don't use all the funds in that budget the next budget will
probably be less; and even though the company may offer the department
manager an incentive to lower the budget many of them have seen an attempt
to work on less fail; and they've seen this enough times to opt for using "all" the
funds in their budget, so as to be allotted the same or more in the future.
So as you can see it's a great big world out there: and the brokers are on to
whats going on: They know how willing a shipper is to pay expedited rates and
they even know when the shipper is ready to have their shipment flown in on
aircraft. All of this become a bonanza for the brokers. But for the ordinary
trucker that does not study the market carefully, he is completely oblivious to all
of these kind of things going on in the market. I've had truckers accuse me of
being greedy for demanding $4+ dollars a mile. but I already knew the areas
where I could catch expedited and most of the time the expedited loads took me
into very weak freight lanes. I would have to run cheap to get back; since I
refused to run cheap, I already understood I would have to make enough on the
run to dead head back. I learned through basic math I could make enough
running expedited loads to cover the expense of dead heading back to the
strong areas and then some. So you see, I wasn't making $4.00+ a mile I
"really" was only making $2.00+ a mile going and coming back. That's
expedited in a nutshell, more later.
Defini nombre de la compañía
Escoger si debe ser LLC o DBA o solo manejarla con tu nombre
Luego que tienes la compañía necesitas regristrarla en el estado donde vives
Necesitas obtener el Federal ID Number, no debes usa el Social security number
como FIDN para tu compañia al menos que quieras corres riesgo de robo de
identidad.
Permisos y documentos necesarios para el negocio
IRC ( International Registration Plan)
IFTA (international fuel tax agreement)
FMCSA (The Federal Motor Carrier Safety Administration)
Federal DOT Number and Motor Carrier Authority Number
UCR (unified carrier registration)
Otros permisos
IRC
Es un acuerdo de reciprocidad Entre los estados de los Estados Unidos,
el Distrito de Columbia y provincias de Canadá que prevén el pago de derechos
de licencia sobre la base de la flota según la distancia recorrida en varias
jurisdicciones.
Para registrarte en Florida deberas hacer lo siguiente:
- completa IRP, FLORIDA APPLICATION, SCHEDULE A & B (Forma HSMV
85900). Lo pueden ver aqui:
http://www.flhsmv.gov/dmv/forms/bmcs/85900.pdf
- si no se entiende como rellenarla aquí están las instrucciones:
http://www.flhsmv.gov/dmv/forms/bmcs/85901.pdf
requisitos: tener un transporte superior a 26000 pounds
IFTA
Es un acuerdo entre los 48 estados de los Estados Unidos y las
provincias canadienses, para simplificar la presentación de informes de uso de
combustible en los vehículos de autotransporte.
Una compañía operadora con IFTA recibe una licencia IFTA y dos calcomanías
para cada vehículo. El vehículo presenta un informe trimestral de impuesto a
los combustibles. Este informe se utiliza para determinantes la devolución de
impuestos netos y la redistribución de los impuestos que fueron generado por
los estados donde recorrió el transporte.
Requisitos para optar por IFTA
-tener un lugar establecido de negocios en la Florida desde el que se realizan
las operaciones de autotransporte
-kilometraje debe acumularse en la Florida
-sus registros de operación de la flota deben mantenerse o pueden estar
disponibles en la Florida
-debe operar en almenos en otro estado o jurisdicción IFTA
Para registrarse dejo el link para que vean el manual para ello
http://www.flhsmv.gov/dmv/forms/bmcs/85920.pdf
Este otro link es la forma(BMCS 85920) que hay que llenar para aplicar a IFTA
http://www.flhsmv.gov/dmv/forms/BMCS/85008.pdf
Si quieren mas información pueden llamar a Bureau of Motor Carrier Services
Customer Service line at (850) 617-3711.
DOT NUMBER
La Patrulla de Carreteras de Florida, Oficina de ejecución comercial del
vehículo (CVE) y la Administración Federal Motor Carrier Safety (FMCSA), han
puesto en práctica el Programa de Registro de Autotransportes de la
Interestatal y autotransportistas intraestatales. Es obligatorio que su empresa
obtenga un número USDOT y mostrarlo en todos sus vehículos comerciales
(CMV). Una vez que reciba el número DOT, deberá colocarse en ambos lados
de la unidad, en un color que contraste con el fondo del vehículo, y el número
debe ser lo suficientemente grande como para ser legibles desde cincuenta
metros del vehículo.
El número USDOT sirve como un identificador único para el seguimiento de
seguridad de una empresa como seria la información obtenida durante las
auditorías, revisiones de cumplimiento, investigaciones de accidentes e
inspecciones.etc…
Formato que aplica para el DOT en el siguiente link
http://www.flhsmv.gov/fhp/cve/DOTNumberApplication.pdf
la oficina que tramita esto es
FMCSA (The Federal Motor Carrier Safety Administration)
puedes acceder a esta pagina
http://www.fmcsa.dot.gov/
de todas formas pueden llamat a este numero 1/800-832-5660 or e-mail
[email protected] para asistencia.
FMCSA Get Authority to Operate (MC Number)
En general, A las empresas se le requiere una autorizacion para estar en
un estado a otro (número MC) además de un número DOT
La Autorización para operar FMCSA se identifica a menudo como "MC", "FF" o
"número MX", según el tipo de autoridad concedido lo que Es. A diferencia del
proceso de solicitud Número USDOT que es unico, una empresa puede
necesitar obtener múltiples Autoridades de funcionamiento para apoyar sus
operaciones comerciales previstas.la Autoridad de funcionamiento determina el
tipo de operaciónes que puede dirigir una empresa y la carga que puede
transportar.
Es importante antes de aplicar saber la actividad específica que se va a
desenvolver porque hay varias autorizaciones
En esta página puedes ver los tipos y seleccionar el formato para completar la
operación según lo que yo vi pienso que seria el modulo Freight Forwarder
Authority - Form OP-1 (FF) Instructions pero seria de evaluar.
http://www.fmcsa.dot.gov/registration/types-operating-authority
El proceso dura mas o menos de 25-30 dias laborables se puede hacer por
internet
Hay otro número que seria el MT pero es si vana reparar tanques o soldar
vehículos de transporte
Determine how your trucking business will operate.
Trucking businesses operate by bidding on and fulfilling transportation accounts
and contracts. Most trucking businesses usually operate in one of two formsthe difference lies in how they acquire drivers to fulfill their accounts and
contracts:
Sub-contracted drivers: Under the first option, you run your business
using sub-contractors as drivers. Although you, as the business owner,
run the business and receive the contracts, your drivers are not actually
employed by your company. This option cuts down on start-up costs,
insurance costs, and required equipment. On the other side, this option
gives you less control over your drivers and cuts into your profits.
Privately-owned drivers: Under the second option, you privately run your
business and all operations. You use your own equipment, pay higher
insurance prices, and hire a fleet of private drivers as employees. This
option gives you total control over your business and its employees, and
promises the most return on profits. On the downside, this option
requires a great deal more start-up capital and operating costs.
Follow the traditional steps to starting a business.
As with any new business venture, first understand the basics of starting a
business, and then research the additional steps specific to your field. After
yo've determined what type of trucking business yo'd like to start, follow
these 10 Steps to Starting a Business for more information on financing your
business, hiring employees, and complying with tax obligations.
Comply with all trucking-specific business licenses, permits, and forms.
In addition to the general federal and state requirements, there are tax, license,
and permit regulations that apply specifically to the trucking industry. Depending
on the type of trucking business you plan to run, several important requirements
may include:
Federal DOT Number and Motor Carrier Authority Number' Understand
your requirements and apply for these certifications online at the Federal
Motor Carrier Authorit's website.
Heavy Use Tax Form (2290)' Comply with tax regulations related to the
heavy use of U.S roads with IRS Form 2290 .
International Registration Plan (IRP) Tag' Understand your requirements
and obtain IRP tags by visiting your stat's transportation website and
their IRP portal.
International Fuel Tax Agreement (IFTA) Decal' Understand your
requirements and obtain IFTA decals by visiting your state's
transportation website.
BOC-3 Filing - Use a processing agent and the BOC-3 filing
secure and maintain active operating status.
option to
In addition to these operational requirements, if you chose to employ private
drivers, they'll need to obtain special drivers permits or endorsements, such as
a commercial driver's license, to legally operate your vehicles.
Each state has a portal dedicated to commercial transportation. For example,
Idaho's government website has a Trucking Portal that has detailed information
on commercial driver's license requirements, rules and manuals, safety
information, licenses and permits, taxes, and all other related issues. Before
you start your trucking business, be sure to visit your state's transportation
portal to help understand the required regulations and assistance your state
provides.
For more information on the regulations facing the trucking industry, visit
Business.gov'sTransportation and Logistics guide. Because these regulations
can be confusing, you may decide to hire a compliance professional to help
make sure all requirements are met.
Obtain the necessary insurance requirements to sustain your business.
The nature of the trucking industry imposes strict insurance requirements on
businesses. Because you own and oversee the operation of commercial
vehicles, your insurance requirements will cost more than many other
businesses. To fully understand your insurance responsibilities, discuss them
with specialist in your area.
The following guides provide more information on types of business insurance
and your requirements:
What Type of Insurance Do I Need?
Finding and Buying the Right Policy
Protect Your Business With the Proper Insurance
In addition to your insurance responsibilities, your employer responsibilities
require you to comply with health and safety standards and regulations. The
U.S. Department of Labor's Occupational Safety and Health Administration
provides compliance assistance for the trucking industry to meet these
expectations.
Find and buy the proper equipment to get started.
If you choose to operate a private fleet with your own drivers, you'll need to
purchase commercial vehicle(s). Depending on your start-up capital, you'll need
to determine how many vehicles are reasonable. While many businesses start
small, as your profits grow you can always add to your fleet. When choosing
what commercial vehicles are appropriate, consider the type of freight you plan
to carry. Different types of cargo require different equipment. For example, if
you'll be transporting food, you may require a refrigerated truck or if your cargo
is oversized, you may require a flatbed truck.
When making your selection, also think about the environmental considerations.
The Small Business Matters blog, Greening Your Business Fleet - A Five Step
Approach that Can Save You Money, has tips that can help you make an
environmentally friendly decision while helping your business's bottom line.
Equipment Leasing: Weighing the Pros and Cons provides insight into choosing
to purchase or lease equipment for your business.
Build up your client base to obtain transportation accounts and contracts.
The competitiveness of the trucking industry makes receiving contracts difficult.
As a start-up business, you most likely will not have the reputation required to
receive large accounts. Many trucking businesses start small, utilizing local
contracts and small business trade shows, to build up a client base. As you
successfully complete these jobs, you'll be able to grow your business and
contract larger jobs.
Business.gov's blog on Tips for Growing New Markets on a Tight Budget has
more information on successful advertising techniques.
General Cash Outlay for Operating Authority
300.00 MC# FMCSA Application
1250.00 Insurance Primary Liability and Cargo
1000.00 Down Payment on a new to fairly new Trailer
500.00 Tax Tag Title
100.00 Compliance Services providing Consortium for random drug and
alcohol screening
100.00 If you chose to use a Compliance Service to set up all the other
compliance paperwork
12.00
New Mexico Weight and Distance Application 2.00 and 10.00 per
Certificate
10.00 New York Application and Sticker
20.00 IFTA Application and Sticker
3,500.00 Roughly is the cash layout in general on average to make the switch
Heavy Highway Use Tax may or may not be due, as already owning your truck
you should know by now it's about 550.00 annually Form2290
California State Application is no charge if you have not run miles
under you authority
Kentucky's Application is free for the KYU
Any one of these may have change, but these prices are fairly current at the
time I'm posting the material 1st QRT 2009
One of the first things you'll want to concern yourself with is what is my
responsibility at the Authority level, what should I expect to earn and HOW" am I
going to do it. Here's a few things to keep in mind and a little bit of what happen
to me at the Authority Level
III Business responsibility: This includes but is not limited to the previous
responsibilities of the load and the unit, the total responsibility for the creation of
the business, the structure of its services, the range and scope of the business,
the choosing of all services to the business, all legal requirements, employment
requirements, compliance requirements, record keeping e.g. maintenance,
driver logs, qualification and medical/drug and alcohol screening and random
test, filings, taxes, penalties, legal injunctions, negotiating of all contracts
involved in the general day to day business, setting rates, finding loads, gauging
the market, research and development “which is by the way is what you’re
doing now, permits, buying and selling of equipment, trailers and other load
securing devices, recovery in breakdown situations, training, office and location,
rents, utilities, and all other overhead financial responsibilities, and the list goes
on and on and on.
One of the main things to continue to bear in mind is, If you have all this double
the responsibility it should go without saying that you should be paid double of
what you are paid at the company level. I did nothing but math and
Spreadsheets the whole time I owned equipment, and over and over again I
found that those that did not have a working knowledge of the market were paid
as such that after their expenses they were making in most cases half of what
the company drivers make. I'll be showing you some of those numbers. Point is
it should never be and the shame is that in an average market with a high
demand for truck it never should happen.
Authority stage: The decision to get my own Authority came as somewhat a
surprise and carried its fair share of a mystery to me; I had left Panther thinking
the grass was greener on the other side over at Tri-State. It wasn’t, I think
maybe I could have stayed but I was already use to freely finding my own loads,
at least outside the service area and sometimes inside all depending on the
situation but there was, let’s just say, a different kind of environment there for
that. So it got me to thinking, maybe God is putting out a challenge for me, and
as you can tell I’m always up to it if the Lord “opens the door” so I check the
bank and they said “No!”, I was some what relieved . I’d just stick it out and who
know what the future would hold. But I remembered I’d been with the Credit
Union for a long time, so I thought Why not try, turns out, they help me get the
loan for the trailer. So the door was open and three weeks later I was on my
own Authority and the Lord bless me to learn so much I can’t list it all here, so I
decided to write a book, so here it is.
The process for obtaining your own Authority
Federal Common and Contract Operating Authority
If you were a local distributor of some type of goods that never leave the state
you don’t need Federal Authority. You may need state authority, so check with
your state. If the same local freight goes out of the state or comes into the state
from out of state, you’ll need Federal Authority.
What is Interstate Operating Authority: Authority is permission from the Federal
Motor Carrier Safety Administration to haul freight passengers or equipment that
originates from one state to another state, which means you have complied with
the requirements set forth by the FMCSA for Operating Authority.
Follow this link for any questions on Federal Operating Authority FMCSA FAQ
Operating
Authority
Federal Common Authority:
If you are open to the public i.e. running loads through brokers, shipper etc. that
go from one state to another state, you don’t own the freight, your broker
doesn’t own the freight, you are expected to insure the freight, this type of
authority is commonly referred to as Common Authority. With Common Authority
you are open to the public and are liable for insuring the load, the general
public, the value of your equipment and the equipment or property of others in
the event you are at fault in an accident. When you contract with a broker to
haul a load, you agree to insure the loss of any part of the load, the broker is
required to have proof that you do in fact have Cargo Insurance for the amount
of coverage needed for the load, this make them a certificate holder. In the
event of a loss the insurance company will pay the carrier and the carrier will
pay for the losses to whomsoever the owner of the freight is. If the broker
requires you to add them as an additional insured the request has to be
approved through underwriting of the insurance company. If approved as an
additionally insured, in the event of a loss the broker is then paid by the
insurance company and is responsible to pay whomsoever the owner is of the
freight.
Federal Contract Authority:
Let’s say you only haul loads for one company that owns the freight that goes
from one state to another state and you are only responsible for hauling it, the
company is liable for any loses. In this case you are not required by DOT to
carry Cargo Insurance; but you must insure the general public and the value of
your equipment and the equipment or property of others in the event you are at
fault in an accident. This type of authority is commonly referred to as Contract
Authority. However, if the company requires you to pay in the event of a loss
due to negligence or carelessness on your part you will then be required “by
that company”, not DOT to carry Cargo Insurance. In which case whether you
have Common or Contract Authority you are on the hook for the losses if it’s
your fault.
Now some smart Truckers out there suggest you get both, I’m not that smart, I
always say get what you need. There logic is that some states exempt you from
taxes on certain purchases which could save you thousands of dollars if you
have Common Authority. Please, check that kinda thing out with your State; it
just may only apply to the good folks of Kansas I guess. Don’t get all rapped
around the axial about it though.
US DOT Number
DOT Number just like you have to have a social security number for your
person, in transportation you have to have a Department of Transportation
Number, and like a social security number doesn’t give you permission to drive
neither does the DOT number give you permission to participate in interstate
commerce, it’s just a number that all federal information about your company is
accessed by. Go online FMCSA DOT Registration
fill out the questionnaire, obtain your PIN number, your DOT number will be
issued immediately, it’s all free and you’re ready to get your MC Number.
Motor Carrier Number MC
The MC Number is to your trucking business what your CDL is to Driving a Big
Truck. It gives you Carrier status and Interstate Operating Authority. To get an
MC number go online to FMCSA DOT/MC Authority Registration Assisted or
Unassisted fill in the blanks for the online form, take out your credit/debit card
and shell out $300.00. About the same time, work out the details with your
prospective insurance company for you insurance. You’ll need two months
payments to get started, so figure about $1200.00 to $1400.00 depending on
your driving record and insurance conditions. In about two weeks your number
will issue, it will be in the inactive status until your insurance company sends
them the proof of insurance. By calling FMCSA you can know when it becomes
active. You have to have a copy in your possession to do business, if you can’t
wait for it to come in the mail you can have a copy emailed or faxed to you; its
$40.00 to get a copy; there’s only one man and his name is Don. The support
folks at the FMCSA will give you his number. Pay the man, he’ll email or fax it to
you, and you can go pick up a load that day!!! Hopefully you will have
completed the rest of the stuff on my list
BOC-3 "Process Agent"
FMCSA Reg. CFR 49 pt 366 BOC-3 A process agent is someone who may be
served on your behalf with court papers in any proceeding brought against you
as a motor carrier. In order to obtain your authority this requirement must be
met. Boy once you file that registration application those BOC-3 companies
gona be on you like ugly on a ape, they’ll call email, fax, and if you're in their
city they might knock on your door. Here look, there’s a whole page of them
listed on the FMCSA site so you can beat them to it if you want.
FMCSA BOC-3 Process Agents
They all want to charge about 25-50.00 bucks just to be the one that can be
served on you’re behalf. They already know the law requires you to have one so
just get em paid and be done wit it.
Insurance Requirements to have your Authority
To run your own Authority you have to have $750,000 primary liability and
$100,000 in Cargo. If you only have the bare minimum coverage you’ll expect to
pay around $650.00 a month and about $50.00 per $22,000 more in cargo
coverage. I suggest you have more cargo. I had 250,000 in cargo. I was
allowed to carry high dollar loads when it became necessary. I’m not saying you
need that much, and besides if the circumstances are just right you can call
your insurance provider and request an additional amount of insurance before
you agree to a load over your coverage amount.
This would be in the form of an endorsement to your current insurance contract
and would have to go to underwriting for approval. The insurance companies
will only allow this maybe a few times a year. If you keep asking, their going to
start requiring that you have a higher coverage amount in cargo insurance on a
permanent basis. My problem was most of my loads booked toward the end of
the normal business hours or after, so when the shipper needed it, they needed
you to have it now! And they need you to go get the load now! So there’s no
time to wait until you’re insurance company opens the next morning to add it. If
the broker is scrambling to find a truck with the insurance requirement and if
you can’t get coverage now, they’ll usually get off the phone. If they know I
have the proper coverage, but don’t like my rate, chances are they’ll have to
come back to me anyway.
Did I pay dearly for that potential? Yes I did, but I knew I could make it up on
about two high earning loads. Should you do that? That’s a personal decision
you’ll have to make. Later we'll talk about Supply strategies, which is when
there are more trucks than freight in an unusually long downturn in the market.
When that happens you began to realize, sometimes it’s better to cut your
expenses to a minimum than to be forced to close the business.
But I would caution you!!! If you take a load say, that’s $200,000 in value and
you only have $100,000 cargo insurance, and you lose that load, the insurance
company will penalize you by only paying 50% of the coverage you had. That is,
they’ll only pay $50,000 minus your deductable, i.e. deductible = $1,000 they'll
pay $50,000-$1,000=$49,000. Now in this case you’re on the hook for the rest
$151,000 total for the load you just lost. The insurance companies can and will
do this as it is already written in your contract under the “Co Insurance Clause”
and I bet you didn't even know that. How many Truckers do you know actually
read those kinda things?
Get insurance quotes, get insurance, when they report insurance to FMCSA
your Authority MC Number becomes active. You are required to decal your
company name on the sides of your trucks, also DOT, MC, VIN (certain states)
and any other state required decals, IFTA on sides and NY HUT sticker on front
fender seen as truck approaches.
UCR the Unified Carrier Registration replaced the old SSR Single State
Registration Call your state DOT; it’s about 40 bucks one truck.
Kentucky KYU
form online at Kentucky DOT KYU Application Kentucky Trucking
Application: Form TC 95-1 “accepted only by mail” it’s about 10 bucks.
New Mexico weight distance
If you Google New Mexico weight and Distance Tax Permit you’ll find the Form
MVD 10995 PDF New Mexico Weight And Distance Application , fill it out send
about 2.00 bucks per permit.
New York HUT Highway Use Tax
application online NY HUT Application , about 20 bucks.
California Motor Carrier Permit
is online at California MC Permit Online Application
As with any of these applications don't let the look of application intimidate you,
most of it doesn't even apply to you , just go down through it carefully and you'll
find it's really not difficult at all. There is a phone number to call right on the
application itself if you have any question, I called and they were very helpful
and I don't remember going through any prompts. If I remember they picked
right up. If you haven’t run any miles in California yet, I don’t think there is a
charge for the application, call them to make sure.
Oregon Weight and Distance Permits
These are obtained trip into the state of Oregon, if you run that area all the time
you can pay a one time fee which allows you to travel the state year round, but
it up around $2,000 bucks. If you’re not traveling there on a regular basis you’ll
want to opt for the occasional permit.
Oregon will set up your account on your first entry, get your weight distance
permit “before” entering the state Oregon DOT Oregon DOT or call 503-3786699 they’ll assign you a file number after you register by phone.
Online http://www.oregon.gov
Compliance Services
Help with New Carrier New entrant Audit driver files, Medical files, Qualification
files and Drug and alcohol. They also provide Hazmat Emergency Plans and a
host of other compliance services. Find a compliance service pay about
$100.00 bucks to get in the consortium for drug and alcohol testing. It’s the law.
The other services are a choice, I used Foley Services I was very pleased and
would refer them to any carrier.
Call or go online to your state IFTA usually found on DOT DPS or DMV site for
your state.
IFTA Briefly Explained
In addition to IRP which registers you to run in each state you are also charged
by each state based on the amount of fuel you burn in their state. You’ll be
charged by almost every state you burn fuel in. If you buy your fuel in a state
which already includes the tax in the fuel purchase, they don’t charge you
based on the miles you run in their state, if you buy just the right amount of fuel
for just the right amount of miles in every state you won’t owe anything, but you
still have to report it, besides, that probably won’t happen in a lifetime, and they
know it. International Fuel Tax Association “IFTA”: every state has one; they
collect from you based on your fuel receipts and the miles you submit for all
states.
They then send just the right amount you owe to each state based on the miles
you ran in that state and the fuel you bought or didn’t buy there. You have to
renew the IFTA sticker every year and put it on the side of your truck. It and the
application is 10 bucks, don’t get cancelled for a non payment it’ll be 100 bucks
to redo another application in some states. You submit an IFTA report and pay
every quarter, if the paper work is a little bit more than your busy schedule can
handle you’ll need to get a service to help you. . IFTA Preparation
Your Fictitious Business Name
Most likely your state will want you to register your business name and entity in
their state. I think it was like 10 bucks in Washington but I think its like 100
bucks in Oklahoma, after that they make you pay taxes on the miles you run out
of their state or into their state while doing business i.e. under a load. That’s a
state tax not IRP, but if you don’t run any miles in their state when you renew
your IRP “that’s registration” at end of year; instead of declaring that you ran
let’s say a 1000 miles they’ll say, “oh well, since you didn’t run any miles in your
own state you have to use estimated miles chart”, which charges you like well
over 20,000 miles the IRP taxes alone for that state will come out over 200
bucks, so its better to do a little running in every state you list on your IRP,
especially the state where you base plate IRP or you’ll pay estimated taxes on
miles you didn’t even run.
HAZMAT
The first step in the process is to get to the Hazprint site online for the
Transportation Security Administration, a governmental agency that checks your
background to make sure you're not a terrorist or something. There you'll find a
city and state where you can walk into there office, do the application and have
your finger prints taken. Don't worry most places don't even use the black stuff
anymore it's all computer imaging cool. You just lay you grimmy little DB's on
the glass and whaola! it's done.
Getting the Hazmat Permit will open so many doors of opportunity for you you
would not believe it, I went the whole first two years running my own authority
thinking my insurance would skyrocket if I got my Hazmat Permit, as it turned
out I ended up going with a new provider and my overall cost including my
cargo and primary and the Hazmat was all about 70.00 bucks less than what I
was already paying. Now ain't that a blip.
By far the hardest part of any process for anything I ever did in all of trucking
was finding an underwriter that would write for an independent that really could
not tell them exactly what he might be carrying. I started the process in about
September of 2007 I think and finally ended up getting insured in about May of
2008. I might need to check those dates. It probably won't take you that long. I
went through about 5 different Insurance agencies trying to get an agent that
would finally chase it down for me. My search landed me at Clinewood
Agency Which is the insurance company I refer you to on the Business Product
Page, Others had pursued Great Western Casulty on the matter and didn't
follow up, but they did, and we got it. the primary problem was figuring out how
to assess the risk on a one man operation that could not really know exactly
what he might carry. So we all agreed I'd do about 12 loads a year on some
general Hazmat and review it at the end of the year to see if the products would
be the general kind of hazmat I expected, like paint, corrosives and this kind of
stuff you would throw on a van.
Once I got my Hazmat insurance I was ready to get a Hazmat Emergency Plan
which is what you have to have to apply for the Hazmat Permit. This is most
involved and too complicated for me, but I found out my Compliance
Company Foley Services offered the service I jumped on it , It was 450.00
bucks but for the time and energy I would save I think it was worth it, and again
that's conservation of time. Once you're out there busting it on loads on a day to
day a Hazmat Plan is the last thing you need to be worried about. Here's one
thing I know, most guys won't take the extra step to do Hazmat, which set those
of you that will miles ahead of them.
Unfortunately I got out the business before I could make good on my Hazmat
investment, but I'll give you the final steps. Next go to the FMCSA site and pull
down form MC 150-B which allows you to report your Hazmat status on the
federal level this form may or may not be current so double check at
the FMCSA help line ahead of time, at 1-800-832-5660. You'll also need to
update your original MC 150 and your DOT status on the SAFER site
Now that you have all the bases covered on the FMCSA side there is the
PHMSA side to tackle.
The Pipeline and Hazardous Material Safety Administration creates and
enforces all the handlings of all hazardous material shipments.
There are two levels of requirements
Training Requirements
Placarding requirements
First the training requirements for an Independent. Like the compliance for
FMCSA you'll have to document that you trained yourself according to all the
training requirements of the PHMSA 49 CFRand create a certificate that you
must carry on the vehicle to show that you received training for your certification
within the required intervals. As you add on drivers you must insure they have
the equivilent training to the standards of the 49 CFR and are awarded a
certificate of acheivement within the time intervals of the reg..
There are several level of training. the good thing is, all the regulations of the
training is offered in the 49 CFR which is the Regulation bible for all Hazardous
material training. However to ease your burden a bit there are bite size levels of
training offered through the PHMSA site some for free others on a cost basis.
These are the categories of training required
FMSCA security awareness
General Hazardous Material Awareness
Safety Training
Function Specific Training "depending on what you haul"
Driver Training as per 49 CFR 177.816
There are lots of training materials offered by PHMSA that will assist you if you
have a classroom of students as it would be for orientation. These materials are
offered through the PHMSA site
Training Materials
Electronic Services for hazardous material training brochures which are mailed
to an address
Library Services Online are training materials which may be downloaded or
printed online
There is also a 25.00 CD for the training which is offered through
the PHMSA site
Once you have made yourself available to the training you are required to have
through PHMSA you must document all the levels of training as you did for your
compliance and qualification file for FMCSA. You'll need to have this
documented audit ready according to the intervals laid out by the PHMSA.
The next level of qualifying to haul hazardous materials is the registration for
permit level. Whenever you have to placard a load for hazardous material you'll
have to be registered with thePHMSA to do so. There is an application and a
fee which is set by a fee table depending on what you are carrying and the size
of your company. Once you obtain this registration for your company you can
copy the registration certificate and put it on each truck that will haul Hazmat.
The application is online at the PHMSA site and the fee table. There is an online
application and pay option available which allows you to complete the process
online and have the Permit faxed to you immediately.
Trucking Business Start Up Plans To Become A Company Driver
Operator Operating Authority
Lease
Running Expedited
Expedited loads are loads that usually have to be run straight through for
earliest possible delivery. The market for expedited started as many loads either
missed certain items in filling the order, or sent the wrong items. Suddenly the
precedence to get the right or missing shipment to the customer becomes in
some cases a matter of keeping the contract to continue doing business with
the customer. In an average market finding available trucks can be very difficult,
and the competition from other trying to find those same trucks can be fierce.
This is why the expedited market will always continue to thrive. There are
always things that go wrong that create a very high precedence on
loads.Sometimes machines go down, or management makes a mistake, or a
more profitable contract order had to suddenly be filled, which in turn puts the
burden of the rush on a less important customer.Even in some cases with very
large companies the transportation department has been allotted a budget to
work from. If they don't use all the funds in that budget the next budget will
probably be less; and even though the company may offer the department
manager an incentive to lower the budget many of them have seen an attempt
to work on less fail; and they've seen this enough times to opt for using "all" the
funds in their budget, so as to be allotted the same or more in the future.
So as you can see it's a great big world out there: and the brokers are on to
whats going on: They know how willing a shipper is to pay expedited rates and
they even know when the shipper is ready to have their shipment flown in on
aircraft. All of this become a bonanza for the brokers. But for the ordinary
trucker that does not study the market carefully, he is completely oblivious to all
of these kind of things going on in the market. I've had truckers accuse me of
being greedy for demanding $4+ dollars a mile. but I already knew the areas
where I could catch expedited and most of the time the expedited loads took me
into very weak freight lanes. I would have to run cheap to get back; since I
refused to run cheap, I already understood I would have to make enough on the
run to dead head back. I learned through basic math I could make enough
running expedited loads to cover the expense of dead heading back to the
strong areas and then some. So you see, I wasn't making $4.00+ a mile I
"really" was only making $2.00+ a mile going and coming back. That's
expedited in a nutshell, more later.
