I want to join you all and get my own authority! But heres my checklist

It can take up to 6 weeks to get your authority back after you apply. The minimum time is two weeks. Anyone who applies for authority must have it advertised for a couple of weeks, so that should be the minimum time you allow. Once you apply, you can go online and check the status of your application. The cost is $300, if you do it yourself. Everything can be done online.

I would allow a minimum of 30-60 days to be up and running. Your insurance will need to be on file along with your authority being active. Most insurance companies take at least several days to get back with you. I have had to wait a week or so for some to get back with me with a rate. And you need to check around and compare rates. You may be surprised at the wide range of rates.

You can incorporate in a day in many states. Most now offer online applications. You can do it yourself or hire a lawyer to do it for you. But, the actual process can be done online in a matter of minutes. Using a lawyer or service can take longer.

If you only run California you may only need California authority. It will limit you to only running withing the boundaries of the state. You will be limited. California is one of the handful of states which require intrastate authority for those who pick up and deliver the same load within state boundaries. When you apply for interstate authority you will be issued a motor carrier number (MC number). You will also need to apply for a DOT number. There is no charge for the DOT number. You can apply for both at the same time on the fmcsa website. DOT number is not authority. It is a number the feds came up with several years ago and it is used more than the MC number.

State laws differ when it comes to workers comp. Some will allow you to have an occupational accident policy in lieu of workers comp. Some do not require workers comp until you reach a minimum number of employees. Other states require workers comp even if you are the only employee. Call your state or check with OOIDA. www.ooida.com. They are a good resource for drivers, owner operators, independents and small fleet owners.

You will need a minimum of $750,000 liability insurance to get authority. Most brokers and shippers require a minimum of $1 million auto liability and $100,000 cargo in order to do business with them. You can get insurance prior to having your authority. In fact, you won't be able to get the authority without it. Most insurance companies will also require you to have a truck to list on the application.

You pay a lot of money upfront when you first apply for authority. You will likely pay your first and possibly second premium before you can start making money. You cannot get your base plates (IRP) or permits, IFTA, etc., until your authority is active and you have received a copy to show them. That is why it can easily take 30 days or longer to get rolling. Good luck.

 

G-Man said it all and he is right,

Plan on 45 to 60 days from the time you apply until you can actually start hauling,,Important factor is getting your insurance right and filed with the Fed DOT..

 

Send me a msg, I will give you a phone number to a lady in FL. She can get you everything and she does the paperwork for 700$.

Thats what I did when I went out to get my own authority.

 

you'll need comp if anyone's working for you. You can try the 1099 route but unless they have their own truck, it would be hard to defend in court, in which case you pay their taxes on top of what you paid them, and all at once, plus fines. If you go the business partner route, expect to do 90% of the work for 30% of the profit, or that's how you'll feel. The other guy who's your partner will probably feel the same way. Partnerships rarely seem to work out. I recommend just being a sole owner. Definitely incorporate, it brings down some insurance rates/minimums (in my experience workman's comp). You don't legally need comp on anyone who's a principal (owner) so legally you can skip it with a partner, but I've found some customers require everyone to be covered by comp that goes on their property (pricipals included) so you might need it for yourself anyway (which would seem strange, insuring yourself for comp). You might have some latitude in how you're listed on the policy though if you tell them you just dispatch (lower rate than driving, which is also a lower rate than say, roofing). I'd recommend starting with a good insurance agent who knows your type of trucking and then get his advice on who to get for a lawyer and the specifics of applying for authority. A good agent knows everybody and knows the laws, rules, regs etc. Plus that way if you don't have an accident, you're at-least getting some consulting for all your money paid to insurance! filing to be a corporation is best done right off the bat, it's a SOB to switch stuff later.

 

I filed my LLC myself. Go to the corporation commission in your state and file it - you don't need legal zoom or a lawyer for that.

 

A couple of small gotchas specific to Cali:

Part of filling for LLC is making sure nobody else has your LLC Name. A minimum 2 week delay for the state to check. Some lawyers, accountants, and online folks are set up to do an electronic search. They can set you up for same/ next day LLC for a small fee. There may still be an additional couple week or so delay to get your paperwork after the Sacramento office gets it.

Cali Has some kinda tax that is triggered When the LLC is formed. It's in the $1000 dollar range. It's an annual tax. You may want to look at Business Start date after the first. Check with your accountant on how to legally side step that one.

 

Plan on minimum 2 months for California. On top of your federal authority (which can take 6 weeks), you will need a California Motor Carrier Permit which you get after having authority. That will take at least 2 weeks but as much as 6.

Don't get intrastate-only because you'll have to get an apportioned plate once you go interstate and you'll lose all the money spent on the intrastate plate.

CA has a minimum income tax of $800 for corporations & a flat income tax of ~9%