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These are just a few things that might help someone starting out fresh and green in the trucking business. This information is based on Wisconsin regulations. These are the things I wish someone would have told me when I started. If you have anything to add or if you find anything that's changed, please let me know. MC Authority - You need this to haul interstate - across state lines. It costs $300 if you file it yourself with the FHWA. It used to be called ICC - Interstate Commerce Commission - it's now FWHA - Federal Highway Administration. Federal Highway Administration Federal licensing forms - download the application forms here: Federal Highway Administration licensing forms Contract or Common authority - A person or entity providing motor transportation to the general public. Common carriers no longer have to file tariffs but must have cargo insurance on file in addition to liability insurance. If you haul haz mat there are different requirements. Common authority - effective January 1, 1996 there is no difference between common or contract carriers. However, carriers still must register as either common or contract carriers. If you are unsure of which authority to get, check with potential shippers to see if they have a preference. Broker authority - need before you can broker loads to others. You need to have either a $10,000 bond or $10,000 cash in a trust account. For contract authority you have to file proof of liability insurance - a minimum of $750,000 is required, but it's a good idea to get $1,000,000. It doesn't cost that much more and some shippers and brokers require it. They consider you a better carrier if you don't have the bare minimum. The minimum required for cargo insurance is $50,000, but it's a good idea to have $100,000 for the same reason. It depends on what you haul; if you haul computer equipment you'll need more. You also need physical damage insurance for your equipment and the newer it is, the more it costs. It is common to have a $1000 deductible for the tractor, $1000 for the trailer, and $1000 for the cargo. The most you'd be stuck with if you creamed everything is $3000. You can choose a 300 mile, 500 mile or unlimited radius. It's measured from your home as the crow flies. They say you can go out of your radius 4 or 5 times a year, but more often and you will have to upgrade and pay more. You also need General Liabililty insurance. It covers if something falls off your trailer or a wheel comes off or something like that. $1,000,000 costs around $300 a year. You can also get a Commercial Umbrella Liability policy to cover anything else - it costs around $800 a year. WISCONSIN LC# - Wisconsin Intrastate authority - if you load and unload in Wisconsin. You'll also need intrastate authority in other states if you load and unload in the same state. Wisconsin Department of Transportation - 608-266-1356 ILLINOIS CC# - Illinois Intrastate authority - if you load and unload in Illinois. Illinois Commerce Commission - 217-782-7295 IFTA - International Fuel Tax Agreement - You get your IFTA sticker in your home state. You file quarterly reports to your base state and they pay the other states. All 48 states are IFTA members. IFTA license and stickers cost $5 each year. Runs on a calendar year; from 1/1 - 12/31. Wisconsin IFTA - 608-267-4382 Kentucky also requires you to file a Weight Distance Tax Form quarterly and pay an additional $.0285 on each mile driven in Kentucky. To get an application for a Kentucky KYU number - 502-564-4540 IRP - International Registration Plan - You get your base plate in your home state and apportion in other states. All 48 states are members. Your base state pays the other states. The percent of miles driven in other states determines what you pay to apportion. You have to use their list of estimated miles until you actually drive in those other states, then you use your actual miles. There are various renewal periods depending on when you first start your account. Not everyone is 1/1-12/31. After you send in the application they'll send you a bill and you usually have about a month to pay. You keep the same plate and get a new sticker every year. Wisconsin IRP 608-266-9900 PROCESS AGENT - All states require you to have on file the name, address and phone number of a process agent. They use this person to serve papers on you if they can't find you. We paid a one-time fee of $45 for a 48 state list of process agents. You have to have process agents on file before your operating authority will be granted and also when you file your single state registration. HVUT - HEAVY VEHICLE USE TAX - You use IRS form 2290. It runs from 8/1-7/31 every year. It costs $550 for a full year and the IRS now allows you to apply for a prorated credit if you sell your truck. You need proof of your HVUT being paid before they'll issue your IRP license. The IRS sends you a stamped receipt after you pay and you send a copy with your IRP application. It goes by the VIN number on the truck and you can't transfer it. Internal Revenue Service - to order forms 800-829-3976 FUEL BONDS - Some states require you to post a bond. Kentucky used to require $1000 in cash or you could buy a bond through your insurance company for $125 for 3 years. They quit that in 1999 if you have never been delinquent. RANDOM DRUG AND ALCOHOL TESTING - You are required to implement random drug and alcohol testing. The easiest way is to belong to a consortium, locally, if possible. The one I belong to charges $75 per year plus the cost of the actual testing. Random drawings are done quarterly and it IS possible to be drawn every quarter. OTHER STUFF - Some states require you to pay property tax on your equipment based on the miles you drive in their state. Kansas, Arkansas and Kentucky are some I know of that do this. FEDERAL EMPLOYER IDENTIFICATION NUMBER - You can file online at the IRS forms and publications site and most Banks have this form. It is a good idea to get one instead of using your social security number. MEDICAL CARD - You have to get a DOT medical exam every 2 years and carry a medical card. U.S. DEPARTMENT OF TRANSPORTATION ANNUAL VEHICLE INSPECTION - You have to get a vehicle inspection for all of your equipment once a year and carry the papers with you in the vehicle. I'm sure that are many more things to add to this list, but these are a few of the things I would have liked to know when I started my business. Good Luck to all! |