I will be leasing on to a friends trucking co. It is an LLC if that matters. I need to find out what I need to supply other than the truck, trailer and unladen insurance. I do know I will run under his athority. DO I put his mc# and dot# on my truck ? Do I put my business name on my truck or "leased to" his business name or both? His business is located in MD. and I am in NJ. Am I correct that the truck is still registered in my state? Do I pay for the apportioned licence plates? Who provides the IFTA sticker Is there anything I am missing? Also what does he need to do other that liability and cargo insurance? BOC filing, anything? This is a first for both of us and we want to make sure we are doing it right. Thanks so much in advance.
Sit down with the full FMCSR and study part 376 'lease and interchange of vehicles'. The contract he chooses to use is supposed to answer most of your questions... You need his company name and DOT number on the sides of your truck. If you also choose to have your name then the carrier's info needs to be preceeded by 'leased to' -or- 'Operated By'. In order to maintain 'independent' status, most carriers want the contractor to pay for his own apportioned plates, IFTA & fuel tax and you should also be prepared to purchase your own fuel and pay your own tolls. He needs authority and insurance filed w/ the FEDS and needs to supply the Unified Carrier Registration Form too. The lease must tell you how often you will be paid and how it will be calculated and anything else you are expected to be charged back like workmen's compensation if you are not supplying your own coverage... He needs to complete a qualification file, including drug testing results and he needs to have a drug and alcohol program that includes pre-employment, random, post accident testing, etc. and an example of the drug and alcohol information he gives you when you are hired. [he needs this for him self and any drivers/contractors working for him].
First step is for him to make sure that his insurance will accept you. You show 0-1 years experience and that is an issue for most insurance companies. He will have to have a complete driver file on you that is completed, including drug screens and background check before you start. When audited, they will look at dates these reports are run and when you started. You must have his legal name and DOT on your truck. Your name as Owned and Operated by: is optional. What you pay and he pays on insurance is between the two of you. Cargo and Auto Liability will have to be in the companies name. Plates - He can provide plates out of MD for you but the company "owns" the plates. So if you leave then you have to get new plates. I believe NJ is high on plates so this may work out. I'm in IL and our plates are high so I recommend to my O/O's that they get their own plates. Plus, if they want to leave me they are already plated. If you want to get your own plates then you will need to have a lease agreement in place when applying. Best money spent for him would be to join OOIDA. They have a detailed list of what is needed and even a sample lease agreement.
You should ask your buddy. If he doesn't know, you may want to find someplace else to put this truck of yours.
