Hitting the road without a Class A CDL

First off, thanks for any advice in advance, I know some of this gets repetitive..... I still have quite a lot of reading to do here!

Beginning 1/1/23 I'm looking to go start hot shotting vehicles in the neighboring-state area and I'm trying to get my ducks in a row.

I currently have a F-250 and a 45' wedge style car hauler that I've used for personal transportation as far away as Moab, UT (from MS). I'm looking to take my current setup and go out own my own hauling vehicles in the MS, TN, AL, LA, AR area.

My truck is GVWR of <8Klbs and my wedge is older and does NOT have a GVWR. From my understanding per MDOT law anything that does not have a GVWR is based solely on combined actual GVW. I'm looking to stay under 26k lbs (actually I'd like to haul 2 passenger vehicles at a time staying with a combined GVW of +/- 20k lbs).

My action plan is as follows : *please chime in accordingly with any gaps you see...everything helps*

- Obtain MC and DOT number (even operating with a R license I'll need these, correct?).
-File for LLC within' my state
-Obtain commercial insurance for truck/trailer/cargo

What am I missing?

 

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

 

I haven't yet, but that's for sure on the list.

I've weighed it loaded before and to the best of my memory it was around 28k with 2 full body rock crawlers and one tube buggy.

Honestly, I'm not opposed to getting a CDL, upgrading to a ton truck and hauling a full trailer load at some point. I figured since I had all this stuff already paid for I'd see where it goes.

I just got the email confirmation back approving my LLC here in MS about 15 minutes ago, so the little ball is rolling at least!

 

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.