Hitting the road without a Class A CDL

Have you weighed your truck and trailer together on a scale? What's the combined weight empty?

 

If your truck and trailer are paid for you got an upper hand for sure. But you'd be limited to capacity without a CDL. Its a really hard time to get into this business but if your going to proceed I'd suggest doing it like this.

Get your authority active and get your token plates and IRP plates immediately. Do a CDL school 4 days a week for a month. While your authority is aging. On your 3 days off from school do whatever short loads you can from brokers to establish a relationship while doing the school. These loads probably won't be very profitable but more so to establish relationships and to use as references and to learn the ropes.

A SRW 2500 probably won't last long but something you should account for is when you buy new truck you can't get IRP plates for it til your registration paper work comes in. That usually takes 4-6 weeks. Plan to account for that.

Also when your authority won't be active til you have commercial insurance and there is a 21 day wait from apply to active. Plan for that too. Knowing that you will greatly have limitations with new authority under 90 days old should be accounted for too. Because of this the first 4 months are tough but you can be better prepared for it knowing what obstacles you'll face and comfortably be able to afford it. It's an expensive start up without a quick return on investment. Consider yourself warned.

 

Next step from LLC is to open business bank account. It's important you keep business and personal expenses separate.

 

LLC has nothing to do with moving freight, regulation-wise. It's an accounting/tax issue only, IIRC.
Weigh stations look closely at the setup you are describing because lots of disreputable people try to pull CVM/CDL loads with sub-CMV/CDL equipment. I've never done hotshot or dually type work, but I've heard this since I started trucking.

 

In Texas a LLC was required for IRP and IFTA if I remember correctly

 

That doesn't sound right to me.

 

The following requirements must be met before you can claim Texas as your base or home

1. The applicant must have an established place of business in Texas;
2. The applicant’s fleet accrues mileage in the state, and;
3. All operational records are maintained and can be made available in Texas.

An “established place of business” is defined as one that is a physical structure located within the base jurisdiction. The business must be leased or owned by the applicant.

Texas IRP

I had to show my letter of formation for one of the 2. This was for IRP, at first I was thinking I did IRP and ifta at same time. Now I think I had to send the IRP off for IFTA and it took about 6 weeks. May not be required but it was one of the acceptable documents. Not sure but the way its worded from that link makes me think that is.

 

Those IRP requirements are the same in every state. Where does it state you can't be a sole proprietor? They require business structure proof because it's relative to the residency requirements. Technically, as long as you're not a sole proprietorship you can live outside the state you're applying for the IRP account in as long as the records and office requirements are met.