IRP Problems - putting trucks on IRP

Did someone make you do this? My state didn't tell me I had to do that.

 

This was for IRP. Can't have the truck in your name while getting IRP in the LLC name without a lease agreement. The truck was in my name, but I was driving for my LLC. Same as leasing onto a company. I'm literally a "lease operator" as far as the law is concerned.

 

Ok in the case of the subject of the thread, let’s break this all down.

the op for some unexplained reason has to companies or entities. The state dmv won’t allow registering for an irp for the trucks under one entity operating under the second entity.

I have some interchanging between my companies so I have this setup to shed a business or assets easier, I don’t manage it, I hired people to manage all of that, I just tell them what I want.

So I digress …

The first the entity (person, company, llc, Martian protectorate, etc. …) that holds the authorized authority is the carrier.

The authority is interchangeable term for dot numbers for running intrastate by the way.

The truck is the tool that if owned by the entity, has no need for a lease agreement because the entity is one in the same as the authority.

So if the truck is owned by a separate entity (person, company, llc, Martian protectorate, etc. …) then there has to be a legal agreement between an authorized authority and the owner of the truck.

but why?

because of the chain of custody of the freight.

The lease is a legal document that says this truck can take freight across state lines that is handed to the authorized authority to legally haul and the coverage of the insurance and protections for the consignee are in place.

The lease defines the relationship between the two entities and it has to be created and in place.

This is where a Bill of Ladening is required by law from authorized authority to the shipper that indicates who is now responsible party for that load.

 

I just registered another truck today, title in my name, irp in company name and they didn't say anything about me needing a lease agreement.

 

Some people require it, some don’t …

 

Who requires you to do it? I'm 100% independent and the motor carrier services in my state(they) didn't say anything about a lease contract. Who is telling y'all you need a lease contract? Do you think it varies by state?

 

On Landline Now, their insurance segment, they discussed if the truck was titled in the personal name but the company was an LLC or Corp, you need a lease to be able to run the truck this way. Yes, maybe a state will let you get away without it at their IRP office, but legally you need to have it in the truck.