So you want to "own " your own company

I didn't mean to say down payment, I meant per year.
I haven't actually done any of the leg work for getting my own authority just yet. Im just gathering as much information as I can and working on the numbers. Preparing to take that plunge.

 

Could someone further explain this for me?

And also I havent seen anything in the thread about hazmat permits, does it payoff to have them without having a dedicated hazmat shipper?

2 excellent posts by G/MAN on page 107 thank you G/MAN!

 

Registered Agents - You have to have someone IN EVERY STATE YOU OPERATE IN, that can be SERVED PROCESS in the event someone in that state decides to SUE YOU (for ANY and EVERYTHING - including accidents, cargo mishaps, etc.). A "Registered Agent" is the person/service - that ACCEPTS that "service of process". OOIDA (if you're a member) provides this to members for free - other places/business can provide this service also for a fee (sometimes one-time, most times YEARLY of anywhere from $50-$100). A form is filed with FMCSA (BOC-3) that tells them you have this "in place".

As far as HazMat goes - there's an "additional authority" that has to be purchased (another $300), plus the insurance requirement is $5,000,000 (versus the usual $750K minimum for other trucking authorities - though most will just go with $1 Mil). There is also MUCH MORE REGULATORY COMPLIANCE IN PLACE to run Haz (and quite rightfully so), including a lot more paperwork, training, etc.

You do NOT HAVE TO BE A HM CARRIER in order to run HM in amounts that DO NOT REQUIRE THE LOAD TO BE PLACARDED. Nor do you have to have an HM Endorsement on your license - to run loads in quantities in amounts LESS THAN PLACARDED AMOUNTS. DO NOT GET CAUGHT running loads that DO REQUIRE PLACARDS - without: HM Authority, Placards (DUH?), PROPER INSURANCE (DUH?), DOCUMENTATION that the proper training and compliance requirements are in place and documented - have and a whole lot more balls than most "new entrants" have.

IMO - it doesn't pay a newb authority to take on the burden of the of additional FINANCIAL (insurance costs, etc.), REGULATORY & COMPLIANCE RESPONSIBILITY, unless you have a dedicated, long term, GOOD PAYING ACCOUNT that will PAY WELL ENOUGH to offset the additional burden.

Rick

 

And he called me Holier than thou and a negative nanny last week go figure

 

I called you a negative nanny......

 

You are welcome, razor1983. Since registered agents has already been explained, I will address your hazmat question. Unlike motor carrier authority which has a one time filing fee, hazmat licensing is for 1 to 3 years, as I recall. You essentially pay an annual fee to be licensed to carry hazmat freight. The fee is based upon whether you are a small carrier or large carrier. A small carrier pays $300/year. There is a discount for the three years license. Not all insurance companies write hazmat insurance. Some may require that you have a minimum amount of time in business and a good safety record in order to write that type of policy. I have not hauled hazmat in a number of years. I used to only haul about 1 load per year. I didn't think that it was worth the extra cost for the limited amount of hazmat freight that I hauled. I dropped the hazmat off my CDL when they started charging $100 for a background check. Unless you haul a lot of hazmat I don't believe that it is worth the additional cost and paperwork. The rates are not that great, either. I can usually find non hazmat freight that pays as well or more than rates on most hazmat loads. The rates are better in some segments of hazmat, such as explosives and radio active, but you will likely find it difficult to get that type of freight without being leased to a major carrier. Those loads usually originate with the government and will also require a performance bond if you get the loads direct. The minimum bond is $25,000. It makes it more difficult for the smaller carriers to do business direct with the federal government. That is not something you need to concern yourself at this point.

 

Don't forget that you have different classes of hazmat and the "higher" you go the harder it is for a small carrier to get insurance.

 

Some insurance companies don't even want to write hazmat. It can be very expensive for a small carrier.

 

There are a MESS of trucks around that have APU's on them for good money in Kansas City. Supposedly, this place lists 28 different trucks all identical.

http://www.truckpaper.com/listingsdetail/detail.aspx?OHID=3424475&

 

Used APU's can be purchased from TK for $2500 to $5000 Don't let an APU, or the lack of, stop you from getting a good used truck.