WHAT ARE MY OPTIONS? Own, lease or work for ?
The first step would be to decide how you want to work. Here we have 3 options. In either case you will need to take a medical exam ( DOT physical exam ).
1. Work under your OWN trucking authority (company).
2. Lease/work UNDER another authority/company with your OWN equipment for a percentage fee.
3. Work for a company.
Option 1: OWN.
May seem complicated at the beginning but it is the best in the long-term. Especially if you plan on growing your business and having more then one truck down the road. When you start working on your own, the biggest challenge will be getting loads, since you do not have a history yet, brokers will hesitate to work with you. Especially big brokers, but there is a path to get there and I’ll show you how, rest assured. This guide is a “hand-holding” approach to car hauling and trucking!
If you choose to work under your own authority, you will get most of your loads from trucking load boards. Central Dispatch and Super Dispatch (these are both common car hauling load boards. You will need to sign up with them to help with getting work as you build your own personal customer base) The first loads will be hardest to get since you will not have any ratings, but once some of the smaller brokers accept you, make sure you do a great job and insist that they give you a good review. Typically after 10 reviews you should be fine and loads should come a bit easier. As you continue to work, don’t neglect collecting positive reviews to help build your reputation in the business and on the load boards with brokers. Keep in mind there will be a few brokers that will not work with you until you have 1 year in the business (1 year with an active authority, typically the 1 year starts when your authority goes “ACTIVE” see more later on this).
As a bonus to you free of charge, I’ve included my PERSONAL list of brokers you must sign up with since they will give you the most business. These are the brokers I’ve personally used and worked with. That is the “getting work portion” Now typically there are 2 ways to find work. Either you do it yourself (most time consuming way) Or find a dispatcher. It's always a good Idea to hire a dispatcher. Time is our most valuable asset in this business and driving your equipment is already a full time job. To add, dispatching yourself can have its benefits, yet you’ll be less stressed/busy overall if you dedicate the load finding to a dedicated dispatcher.
NOTE: Getting payed by the brokers after you made a delivery and you submitted the BOL my take up to 40 days. Depends on the broker can pay at time of delivery, same day, next day, few weeks and rare up to 3 months, you will find out before booking a load with them.
PRO TIP: Planing in LONG TERM ? Aim to have your own authority, when you learn how everything works, you can work under your own DOT and use your company to build relationships with brokers, in this case you will be able to book your loads under your company, you will have access to their load boards. So you will see the FAT loads, loads paying 3$ and up a mile, rarely goes to a driver which is leased on. Usually it will go to a driver that works for the owner of the company, makes sense. Its not always you will see these loads, because they are once in a wile, but why driving 5 days when you can drive 3 days for the same money? You will learn more about brokers and will target the better paying loads, which you cannot when you are leased, because you will only see the loads your dispatcher sends you.
How to Obtain Your Trucking Authority
Applying for trucking authority grants your company permission from the U.S. government to receive payment for hauling freight as an independent entity. You'll acquire your authority from the FMCSA in the form of an MC number. Here's a step-by-step guide:
1. **Register Your Trucking Company:** If you're starting a trucking company, register your business in the state you plan to operate from. Decide on the business entity type, with sole proprietorships and limited liability companies being the most common.
2. **Get an EIN (Employer Identification Number):** Obtain an EIN from the IRS if you're forming a limited liability company (LLC). While not mandatory for sole proprietorships, having an EIN is highly recommended to avoid potential fraud issues associated with using your personal social security number.
3. **Obtain Your USDOT Number:** All trucking companies must register with the US Department of Transportation and obtain a USDOT number. This number serves as the company's ID and includes information about vehicles, cargo, safety, and compliance.
4. **Apply for Your MC Number:** To engage in interstate commerce, you need an MC number. File for your authority with the FMCSA, receive your MC number immediately upon filing, but it remains inactive until you complete the next steps. Within two to three weeks after filing, your MC authority will become active, and you'll receive your authority certificate by mail.
5. **File a BOC-3 & Obtain Insurance:** Within 20 days of filing for your MC number, complete a BOC-3 form, designating process agents in each state. You'll also need an active insurance policy. Remember to update your BOC-3 and insurance policy if you make any changes to your business information.
NOTE: For your convenience, you can hire me to take care of this process. Having all the experience, I can set you up with everything you need so you can get on the road and make money ASAP.
For more info contact me on Whatsapp: +1 (305) 333-1425
TAX EXEMPTION CERTIFICATE?
A sales tax exemption certificate is an official document that declares a business’ purchases are not subject to the usual taxation system, be that sales tax, VAT, or GST. This certificate serves as proof of your organization's tax-exempt status and is typically required when making tax-exempt purchases. Companies using these certificates promise that they’ll handle their tax calculations and remittals on their own. You would need to find the certificate emitted by the state in which you are located. You could use a tax exempt certificate when purchasing for example truck or trailer.
**Disclaimer: Not a Tax Advisor**
I am not a tax advisor, and the information provided herein should not be interpreted as tax advice. Any content shared is for general informational purposes only and may not be applicable to your specific tax situation. It is recommended to consult with a qualified tax professional or advisor regarding your individual circumstances and to obtain personalized tax advice.