If you are already involved in the road transport industry and are considering starting your own trucking company in the United States, it is crucial to understand the necessary steps to comply with all regulations and legislation. This article has everything you need to know to have a legal company, covering topics from drafting a business plan to obtaining the necessary licenses and insurance.
Before discussing the steps to keep your business completely legal, it is important to address the creation of a business plan. As the owner of a trucking company in the United States, you will need to plan by detailing aspects such as the reason for opening a business, initial capital, projections for the coming years, and more.
Other important points include understanding the sectors in which you can operate, the operations you and your team will undertake, current market conditions., It is crucial to determine how your company will stand out, defineing company services, assess costs, and develop financial projections – essentially, outlining your expected growth and revenue.
After detailing this business plan, the most essential factor for keeping your company functional and compliant with U.S. laws comes next. Let’s move on to the necessary steps to comply with the legislation.
Step 01: Obtaining a Commercial Driver’s License (CDL)
As a truck driver, you are likely familiar with this information. To drive, it is necessary to have a commercial driver’s license, or CDL, as required by the Federal Motor Carrier Safety Administration (FMCSA). This means ensuring that the hired drivers possess this document.
CDL licenses have variations and are listed by class, so it is important to know which type of CDL your company will require. The materials your trucking company will transport may also require additional tests, which also means you and your drivers may need to renew the license more frequently for safety reasons.
If you are unfamiliar with this information, drivers over 21 years old can be part of your team. However, the process requires fees and tests of knowledge and vision, essential factors for operating large trucks.
Step 02: Official Registration of Your Trucking Company in the United States
For your new business to be fully operational, you will need to register it with local and state governments, all in accordance with regulations in your area.
Now, some points to consider in the process of regulating your business:
- If you are starting your business alone, you need to choose a business entity that suits your needs. An example is the LLC type for a limited liability company.
- Check the database of the Patent and Trademark Office to avoid choosing a repetitive business name for your brand or one that has already been registered.
- Apply for your transport authorization if you use vehicles with a gross vehicle weight (GVW) of more than 10,000 pounds.
Step 03: Business License, Permits, and Insurance
Now that you know you need to register your trucking company, let’s move on to the next important step, which is obtaining your licenses and permits to operate your business fullycompletely legally.
At this stage, extra attention is crucial required since the road transport industry in the United States has a high level of regulation. This means there are several requirements for you to operate within the law without any headaches.
Need help obtaining your licenses and permits? Click here and get in touch with Legal Trucking, a company specialized in ensuring compliance and safety for trucking companies in the United States.
Below are some of the licenses and documents necessary to stay legal:
- U.S. Department of Transportation (USDOT) number.
- International Fuel Tax Agreement (IFTA) stickers.
- Employer Identification Number (EIN).
- Registration of license plates.
- Obtain a Standard Carrier Alpha Code (SCAC) from the National Motor Freight Traffic Association (NMFTA).
- Obtain the necessary commercial/state licenses.
In this phaseAt this stage, it is also important to think about safety, so surround yourself with commercial liability, cargo, physical damage insurance, and other types.
Step 04: Adequate Equipment for Day-to-Day Operations
After the previous steps, you can start thinking about how to facilitate the day-to-day operations of your trucking business. Therefore, thinking about equipment is an important step, always considering the most important needs in your the company’s routine.
An example of equipment that can be vital is support systems such as electronic logging devices, also known as ELDs.
This means trucks first and foremost, but also other support systems that vehicles will need to operate efficiently, such as electronic logging devices (ELDs). Also, check safety equipment for yourself and your fleet, includingsuch as cones, jumper cables, and window de-icer.
Step 05: Legal Trucking is Your Partner for Compliance and Safety of your the Trucking Company
At every step of the process, Legal Trucking stands out as a reliable partner for truckers who want to venture safely and in compliance. The company simplifies paperwork, guides entrepreneurs through the complexities of regulations, and ensures that all legal requirements are met.
By opting for Legal Trucking’s services, entrepreneurs can focus on growing their businesses while the company takes care of safety and compliance at all stages of the venture.
We know that starting a trucking company in the United States involves a series of complex steps, but with the right support, the process can be simpler and more efficient. Legal Trucking stands out as a comprehensive solution, providing assistance from the inception of your business idea of starting a business to ensuring continuous compliance and safety. By choosing Legal Trucking as your business partner, you are taking a significant step toward sustainable success in the freight transportation industry.
