Get Into Trucking Presents: The Launch Program

Before you can file for federal trucking authority or obtain any operating licenses, your business needs a legal foundation. This is where everything begins and getting it right from the start saves you time and headaches down the road. 

Your company name is the first official decision you will make. It needs to be unique in your state and cannot already be registered by another business. We help you search your state's business name database to make sure the name you want is available before you file anything. 

Every trucking business needs to be registered as a legal entity with the Secretary of State in the state where you are based. There are different entity types available and the decision of which one to choose is yours to make. We strongly recommend speaking with an accountant or attorney if you are unsure which structure is right for your situation. Once you have decided we help you complete and submit the filing directly with your state. You will pay the state filing fee directly to the government and fees vary by state. 

Your Employer Identification Number is your federal tax ID and it is required before you can do almost anything else in the process. It is how the IRS identifies your business for tax purposes. We walk you through obtaining your EIN directly through the IRS website at no cost. This is a free filing and you should never pay a third party to do this for you as it can be done quickly and at no charge. 

Once your entity is filed and your EIN is in hand you will need a dedicated business bank account. Mixing personal and business finances is one of the most common mistakes new owners make and it can create serious problems at tax time. We guide you on what to look for in a business banking account and what your best options are based on your situation. 

Once your business is legally formed it is time to register with the federal government as a motor carrier. This is the process that gives you the legal right to haul freight across state lines and it is handled through the Federal Motor Carrier Safety Administration, also known as the FMCSA. 

Every commercial motor carrier operating in interstate commerce is required to have a USDOT Number. This is your unique federal identifier and it is how the government tracks your safety record, inspections, and compliance history. We help you register for your USDOT Number and make sure all of your information is entered correctly from the start to avoid any issues later. 

If you plan to haul freight for hire you will also need an MC Number, which is your Motor Carrier Operating Authority. This is obtained by filing the MCSA application with the FMCSA. The filing fee is paid directly to the government. We complete this application with you and make sure the correct authority type is selected based on the loads you plan to haul. Getting this wrong can limit what freight you are legally allowed to carry so accuracy here matters a great deal. 

After your MCSA application is submitted there is a mandatory waiting period required by federal law during which your application is publicly posted and existing carriers have the opportunity to contest it. This period must pass before your authority can become active. We let you know exactly what to expect during this time and use it productively to work through the remaining steps of the program with you. 

The BOC3 is a required federal filing that designates a legal process agent in every state where you operate. This means there is an authorized representative in each state who can accept legal documents on behalf of your business. This filing is required before your authority will be activated by the FMCSA. We handle this filing with you and make sure it is done correctly. 

The Unified Carrier Registration, known as the UCR, is a mandatory annual registration that applies to all carriers operating in interstate commerce. The fee is based on the size of your fleet and is paid directly to the government. We calculate what you owe, walk you through the registration process, and make sure you are filed correctly for the current year. 

While your federal authority application is being processed there is a significant amount of compliance work to complete. The FMCSA takes safety and regulatory compliance extremely seriously and new carriers are subject to a mandatory New Entrant Safety Audit within their first year of operation. We make sure you are fully prepared and that nothing is overlooked. 

Before your authority can be activated your insurance provider must file proof of coverage directly with the FMCSA. Federal law requires a minimum level of liability coverage for all for hire carriers and the amount required depends on what type of freight you are hauling. Insurance for new carriers can be one of the more challenging parts of the process and we guide you through what is required, what to look for in a policy, and how to find providers that work with new authorities. 

To operate a commercial motor vehicle over a certain weight you are required to hold a valid Commercial Driver License, known as a CDL. If you do not already have yours we can guide you through what is required to obtain one in your state, including the knowledge test, skills test, and any endorsements you may need depending on the type of freight or equipment you plan to operate. 

All commercial drivers are required by federal law under FMCSA regulations to be enrolled in a drug and alcohol testing program. This includes a pre employment drug test before you begin operating as well as participation in a random testing pool throughout the year. We guide you through what this requirement involves, what you need to do to get enrolled, and where to go in your area to get this completed. 

If your vehicle has a gross weight of 55,000 pounds or more you are required to file Form 2290 with the IRS and pay the Heavy Vehicle Use Tax annually. Once filed the IRS provides a Stamped Schedule 1 which is required by your state DMV in order to register your vehicle and obtain your plates. We walk you through this filing and make sure you receive your Stamped Schedule 1 so nothing delays your registration. 

The International Fuel Tax Agreement, known as IFTA, is a program that simplifies fuel tax reporting for carriers operating in multiple states and Canadian provinces. Instead of filing separately with each state you travel through, you file one quarterly return with your base state and they distribute the taxes accordingly. We help you set up your IFTA account and explain how to track your mileage and fuel purchases so your quarterly filings go smoothly. 

The International Registration Plan, known as IRP, is the program through which commercial vehicles operating in multiple states obtain their apportioned registration plates. Your registration fee is calculated based on the percentage of miles you drive in each state. We guide you through registering for your apportioned plates and make sure your cab card is issued correctly, as this document must be in your truck at all times. 

Depending on where you plan to operate and what you plan to haul, certain states require additional permits beyond your standard federal authority and apportioned plates. States like New York, Kentucky, and New Mexico have their own weight distance tax programs that require separate registration and quarterly filings. We help you understand which additional permits apply to your specific operating area and guide you through obtaining and maintaining them. 

With your authority active and your compliance in order you are ready to start operating. This final step is about making sure you have everything you need to hit the road, find freight, and get paid. We continue to support you through every part of this stage as well. 

If you do not already have a truck we can help guide you through the process of finding and obtaining one. There are several ways to acquire equipment including purchasing outright, financing through a lender, or leasing. Each option has its own considerations depending on your financial situation and goals. We help you understand your options and point you in the right direction so you can make the best decision for your business. 

Financing a commercial truck as a new business owner can feel overwhelming but there are lenders who work specifically with new authorities and first time buyers. We guide you on what lenders generally look for, what documents you will need to have ready, and what questions to ask so you go into the process informed and prepared. 

Federal law requires all commercial drivers subject to Hours of Service regulations to use an Electronic Logging Device, known as an ELD, to record their driving time. This device connects to your truck's engine and automatically records your duty status. Choosing the right ELD for your operation is important and there are many options available at different price points. We guide you on what to look for and where to find the right device for your needs. 

A load board is an online marketplace where freight brokers and shippers post available loads that carriers can search and book. Load boards are one of the primary ways owner operators find freight, especially when starting out. We walk you through how load boards work, how to search for loads that match your equipment and lane preferences, and what to look for when evaluating a load before you accept it. 

A fuel card is a payment card used specifically for purchasing diesel fuel and other truck stop services. Many fuel card programs offer discounts per gallon at major truck stop networks which can add up to significant savings over time. We help you understand how fuel cards work and what your options are so you can make an informed decision about which program makes the most sense for how and where you plan to operate. 

One of the biggest challenges for new carriers is cash flow. When you haul a load for a broker they typically have anywhere from 30 to 60 days to pay your invoice. Factoring is a financial service that allows you to sell your invoice to a factoring company and receive your payment quickly rather than waiting weeks for the broker to pay. We explain how factoring works, what to look for in a factoring agreement, and how it can help you keep your business moving without cash flow interruptions. 

Our relationship with you does not end when you haul your first load. We are here for continued guidance and support as your business grows. Whether you have questions about compliance, need help with filings, or want guidance on next steps as you scale, we are always available to help.