How To Start Your Trucking Company- Part 1

At Bulkloads Permitting, we help carriers set up their authorities all the time. Due to ever changing regulations and the long list of requirements, most people don't know where to start. We wanted to create resources to answer some of the most common questions. In this two part series I will walk through the steps any carrier would need to take in order to set up their authority from start to finish. Let's dive in! 

1. Set up a Business Entity and Apply for an Federal Tax ID (EIN) 
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   • The first step is to set up a business entity. You can go as a sole proprietor with a DBA, an LLC, a partnership, or a corporation. All have different pros and cons, but we recommend some type of business entity to protect your assets. An LLC is usually the simplest to set up online on your home state’s Secretary of State website. Once you have a business, you’ll be able to apply for an EIN in just a few minutes on the IRS website. If you have questions or have a more complex situation it may make sense to use an attorney to set up your business. 
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2. Apply for a DOT Number/ MC Number
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   • Once you have a business and an EIN you are ready to take the next step towards your own authority! You’ll need to answer a few questions before deciding what to do next:
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     • Are you going to be intrastate or interstate? 
     • What commodities will you be hauling? 
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   • If you plan to go interstate you’ll want to apply for a DOT number and an MC number. (Unless you are hauling only exempt commodities) If you are staying in state, you will only need a DOT number. Keep in mind that a DOT number usually goes active within 24 hours of applying, but an MC number takes a minimum of 3 weeks to go active and also requires active liability insurance. 
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3. Apply for IRP/IFTA
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   • If you are going across state lines for hire you will need to get set up with an IRP and IFTA account. The International Registration plan establishes reciprocity with the lower 48 states and Canada. By setting up an account you will get Apportioned Plates that will allow you to go into any other state for hire. Each state has a different process to get set up, but most will allow you to apply online. You will need your company info, truck info, as well as several proofs of address. If you have held an IRP account previously you will also need to report the mileage you ran in each state during the previous year.
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   • IFTA stands for the International Fuel Tax Agreement. This is usually paired with IRP, but may need to be set up separately in some states. Once you are set up you will need to report your miles traveled and gallons of fuel purchased in each state. These are due one month after each quarter ends and need to be reported even if you don’t run.

If you have questions on any of these steps don't hesitate to reach out. I know it can be overwhelming when thinking about everything you need to do, we are happy to walk through it with you free of charge. (417-262-5511) If you'd rather have someone else take care of all the paperwork for you, we do that as well! At the end of the day you want to make sure that everything is filed correctly the first time!

In part Two I will discuss the next few steps you’ll need to complete in order to get running!

God Bless, 

Tanner