Purchasing our first tractor - What licensing requirements should I be aware of?

Discussion in 'Ask An Owner Operator' started by setter12, Mar 19, 2012.

  1. setter12

    setter12 Bobtail Member

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    Apr 19, 2011
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    So my company is purchasing our first tractor that we'll use to haul our products around to various tradeshows. We basically go coast to coast and into Canada. As a new owner, I am very unfamiliar with the licensing requirements we will face (permits, licensing, taxes, etc). Can someone shed some light on what we'll face as we cross from state to state?

    And are there any 3rd party companies, that can handle all the permits, licensing, and paperwork for an owner?

    Thanks for your time!
     
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  3. free2frog

    free2frog Medium Load Member

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    http://www.ooida.com/ You can start here most of the truck stop rags all full of ads for doing that to.
     
  4. ITS62

    ITS62 Light Load Member

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    Apr 29, 2011
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    Recently set up my own authority as a private carrier similar to your outfit and here is the list I came up with:

    -Register for DOT #

    http://www.fmcsa.dot.gov/registration-licensing/online-registration/onlineregdescription.htm

    -Register with FMCSA for "New Entrant" audit

    http://www.fmcsa.dot.gov/registration-licensing/NewEntrant-faq.aspx

    -Start employee files and records keeping, and associated requirements for FMCSA
    -Enroll in random drug testing program for all employees including yourself
    -File Heavy Highway Vehicle Use Tax with IRS

    http://www.irs.gov/instructions/i2290/index.html

    -Get Insurance per FMCSA requirements and submit on form MCP 65
    -Register with IRP (apportioned registration) in your base state and add states you anticipate running through (you will need trip permits for rest), get plates and cab card (registration) in truck.
    -Register with IFTA (tracks fuel taxes in each state) in your state and get stickers on truck.
    -Register with the Unified Carrier Registration (UCR)

    http://www.ucr.in.gov/

    -Get graphics with company name, city and state, DOT#, IFTA stickers

    -Download and learn about Hours of Service for your drivers and what to expect:

    http://www.fmcsa.dot.gov/rules-regulations/truck/driver/hos/fmcsa-guide-to-hos.PDF

    -Register with the following in addition to IRP and IFTA if you are running there :

    Oregon- temporary mileage pass before you enter the state, or post a $2000 bond and file monthly- (No permit, $520 fine)
    http://www.oregontruckingonline.com/...ction=services

    New Mexico weight/distance tax-
    http://www.tax.newmexico.gov/All-Tax...tance-Tax.aspx

    New York HUT-
    http://www.tax.ny.gov/bus/hut/huidx.htm

    Kentucky KYU#-
    http://transportation.ky.gov/dmc/owo..._owod.htm#Q1-a

    Unless you are headed to NY and OR a lot, I found it easiest to register with NM & KY and just do trip permits for NY and OR on a per trip basis.

    Instead of IRP and IFTA, you can just get combination trip permits for each state (which covers their portion of vehicle registration fees and fuel taxes), but if you are gonna be on the road more than 2-3 times a year, it is just easier to get established from the start with IFTA and IRP because no two states are the same for trip permits.

    There are a few more steps that you must do if you are gonna run "for hire" meaning you will be paid to move someone else's freight. If you are hauling your own property, you will be a "private carrier"....NOT "not for hire" as some would suggest. That is for purely non commercial operations.

    As a private carrier, you do not need a MC#...that is only needed for "for hire" carriers

    All not hard to do, but there are one stop shop services that can set it all up for you if you don't like jumping through bureaucratic hoops. I have set up several companies in the past and about pulled my hair out getting my authority as there is not one place to go of all of the information that you will need to get established...except this board!

    Would also recommend that if you plan on hiring a driver or two, that someone inside your organization that is likely to be on site also have their CDL so you can hop in the truck in a pinch if needed. Unlike regular freight, you should always have a backup plan should something go wrong to get to the show on time.

    Going into Canada is a whole 'nother world which I don't know about.

    Good Luck!
     
    Last edited: Mar 20, 2012
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  5. Poker Guy

    Poker Guy Bobtail Member

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    Mar 4, 2012
    Austin, Texas
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    ITS62......

    That post is PERFECT. Nice job. You covered pretty much all of the things that I could think of. The only other thing I would add is MY RECOMMENDATION that you do all of the paperwork yourself. Make the effort to do your calls yourself and contacting the agencies involved. It does two things for you. It helps you become familiar with the mechanics of the Trucking industry and it provides you the opportunity to ask questions regarding your concerns.

    I clearly understand that this takes time and is definitely a hassle but you will be much better for it. I had a very bad experience with a company who posed as a "Permit and operating authority Company". Basically what they told me is that they can take care of all the papers for you and will give you all the help you need when you are on the road. TOTAL BS. I'm sure their may be honest companies out there but this one in particular just cost me alot of money. They would charge crazy fee's and would never answer the phone when I had a question. The final straw was where they charged me over $600 for a document that I readily found and downloaded off the internet. Yes, that is correct. I asked them to send me a specific document, and they went and found a "draft-practice" document on Google and tried to pass it off as the real thing (something a lawyer would draw up). They auto drafted my business account and took the money without my consent. So my rule is do it yourself and dont trust some of these fly by night paper pushing companies.

    Be careful and ask questions. Remember, you are directly responsible for your vehicle and company. DOT doesnt care if you were not aware of the rule or law. They will write the ticket and send you on your way. ITS62 is dead on the money. He included all the important things that you need to start it up.........

    Good Luck
     
  6. HDFatboy

    HDFatboy Light Load Member

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    Sep 22, 2011
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    That website is NOT official. It's a service that does the registration for you with a huge fee included.

    Good post, though!
     
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  7. ITS62

    ITS62 Light Load Member

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    Apr 29, 2011
    Gilroy, CA
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    Good catch (I stole link that from another post!)...found the official link and updated the above post and added some new links.
     
  8. RedRabbit

    RedRabbit Bobtail Member

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    Mar 14, 2012
    Akron, Ohio
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    To haul into Canada there are a bunch of hoops to jump through and if you are selling goods in Canada there are other issues involved such as taxes and permits. I can recomend a broker to set up hauling into and out of Canada. Check out www.mckaytrucking.ca or contact Kevin at 709-595-3233. As far as the other issue with selling in Canada you should contact Canada customs and they will help you figure out what paper work you will need.
    Good luck with your venture!
     
  9. CenutryClass

    CenutryClass Road Train Member

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    make sure the HVUT 2290 has been paid as well
     
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