What Authorities, Running Rights Do You Need to Start a Trucking Or Expedite Company?
The authorities you need may vary depending on; where do you want your business to travel to and from? Will you be hauling truck load, less than truck load (ltl), and/or expedite. If you only obtain a licensing for an Expedite Business you will not be limited to the vehicles that you can run and the weight you are able to haul.
Who must register for Authorities, also known as running rights? All Companies that intend to use heavy commercial vehicle power units (including leased, rented and owned) having a gross weight or registered gross weight of more than 4500kgs.
Below are some examples of various authorities that are needed to start-up a company in the transportation industry
o CVOR (Commercial Vehicle Operator’s Registration) Canada(under the transportation act valid insurance is required)
o USDOT (United States Department of Transportation) Number is required to haul goods into the us MCS-150,MCS-150A,MCS-150B,OP1
o FMCSA (Federal Motor Carriers Safety Administration) Certificate is requires to haul freight, for hire, or under contract, into the U.S. regardless of the weight
o BOC-3 filing form (us processing agent will file your form)
o UCR (Unified Carrier Registration) is required if you have a USDOT Number. You must select a base state where the fees are to be sent. This new registration program has replaced the Single State Registration Program (SSRS)
o SCAC (Standard Carrier Alpha Code) is required to produce a PAPS code (Pre-Arrival Processing System)
o FORM 2290 (Heavy Highway Use Tax) must be filed for every vehicle with a Gross Vehicle Weight in excess of 55,000 lbs. or 25,000kgs., which will travel over 5,000 miles on highways in the U.S. during the registration period, July 1st to June 30th of each year
o EIN/FIN (Employer Identification Number, also referred as a Federal Identification Number is required in order to file a Form 2290
o W-8BEN is a Certificate of Foreign Status of Beneficial Owner for United States Withholding Tax. You will be asked to submit this form to most U.S. entities that you do business
o IRP (International Registration Program)
o IFTA (International Fuel Tax Agreement)
o OPTIONAL PERMITS – KENTUCKY (KYU tax license number), OREGON (registration#),
NEW YORKSTATE (NY hut tax license #)
You could pay a consultant anywhere from $2500.00 and up to apply for your authorities and be your go between. I have been helping owner operators, expedite drivers; dispatchers and people genuinely interested in the transportation industry start up there own company.
I came up with three different packages/business kits that give you the cost cutting edge with simple step by step instructions. I did this to make it more affordable and enables a wider availability so anyone that is interested in starting their own business can access it. Having a better understanding of what’s needed when you are starting up, is a big advantage once you get going!