The U.S. trucking industry is one of the most profitable industries in the States. That is why more and more people nowadays aim to start a trucking business and make it successful.
Yet, starting a trucking business and making it successful is not easy at all. There are a lot of documents to file and regulations that trucking company owners should follow.
So, if you are planning to start a trucking business, then this article will be of your great help.
Let’s take a look at all facts and figures that future trucking business owners should follow!
Understand the Trucking Industry
The trucking industry is quite complex. That is why right before you start a trucking business should try to understand the trucking industry first.
By knowing how the trucking industry works you will be in the situation to start a trucking business, and moreover to make it successful.
Thereupon, having an insight of all the aspects of the trucking business will enable you to have a positive entrance into the trucking industry.
Yet, since you are serious about incorporating a trucking company, should know that knowledge is power.
The more you are willing to learn about the trucking industry the more successful you will be.
Create a Plan
Straight after you understand the trucking industry you will have to create a perfect plan.
Moreover, since you have a clear insight of the trucking industry, the next step would be writing down an exceptional business plan.
Tip: Create a plan and try to cover every aspect of the business in detail.
So, you should create a plan that includes answers to the following questions:
- What type of equipment are you planning to run?
- In which states are you planning to run your business?
- How are you planning to find freight?
- How are you planning to finance your trucking business?
- How will you manage the business aspect that your trucking company will require?
As you can see, starting a trucking business is not quite simple. On the other hand, making your trucking business a successful one requires a lot of dedication, hard work and never-ending motivation.
Thereupon, there are many aspects to incorporating and running a successful trucking company, so speaking about that, let’s take a look at what one should do in order to achieve running a successful trucking business.
Meet The Necessary Requirements
Once you make a plan and take the final decision of starting a trucking business, you should go further in meeting the necessary requirements.
Dependently from the state in which you are planning to operate you should be familiar with the particular laws that are issued by that state in which you are operating in.
Keep in mind that different states have different rules about interstate transportation of loads as well as in-state ones.
Nevertheless, here are the basic and most common requirements that a trucking business should respect:
International Registration Plan
The International Registration Plan is issued for trucking businesses because it can maximize the interstate highway use.
Moreover, this registration plan should be filled out by all truck owners. Once the registration form is being filled truck owners that is to say trucking company owners will be in the position to proceed with the International Registration Plan and pay the needed fees.
International Fuel Tax Agreement or IFTA Decal
IFTA Decals are becoming a must. There are states that have an International Fuel Tax Agreement decals for class 8 trucks depending on the local laws.
So, trucking company owners once they make a particular route, should check their state’s rules on acquiring the registration. The International Fuel Tax Agreement and all requirements that go with it can be checked on the state’s IRP portal.
Motor Carrier Authority Number and Federal DOT Number
Motor Carrier Authority Number and Federal DOT Number can be obtained with a simple online registration through the Federal Motor Carrier Safety Administration’s website.
Therefore, on the same website trucking company owners can as well download the form for application.
So, trucking companies should determine which permits they need to obtain, starting from the USDOT number up to the Hazardous Materials Safety Permit.
The Heavy Use Tax Form has been issued with the aim to identify the tax that trucking company should pay. Trucking companies pay this tax depending on the truck’s weight and the frequency of the road use.
On the other hand, when it comes to filling for BOC3 – it can be as well done through the FMCSA’s website.
Get The Right Equipment
The first and definitely the most expensive decision that future trucking company owners take is getting the right equipment. After all the right equipment and the best truck drivers can lead you to success. So getting the right equipment is a must.
Thereupon, once you have decided what type of trucking company you want to incorporate, that is to say, what kind of services you will provide, straight proportionally you will know what type of equipment you will have to buy.
So, since you know what type of equipment you want to get for your trucking company, you will now have to decide whether you are going to buy it or lease it.
Nevertheless, you will have to make a strategy straight from the beginning.
Hence, you should as well have in mind that leasing equipment is always more complicated than buying it.
Although at first sight, it might seem like you will have lower payments at the end rarely turns out that way. The array of leasing options can be dizzying.
Yet, there is no correct answer or recommendation that I can give you because after all, it depends on your specific situation. But, if you are having doubts whether you should lease the truck and equipment or buy it, you can always ask for the second opinion from a CPA who specialized in small businesses.
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