Trucking: Take over Authority or start new one, contract carrier authority, dot audit

Question
QUESTION: Hello Jim,
I am working on starting a trucking company that will have 2-3 drivers working for me. (These drivers happen to be family members that are currently driving for other companies). I have opportunity to buy an established company with established (1.5 years) mc and DOT #'S for $2000. This price includes just name llc with clean mc and dot # and good credit history and all office equipment and some training.  Is there advantage to taking over company with established history or should just start from scratch? My worry is that some places will not give me loads because of new mc # and no history established.  Just for info sake....The company was run as freight broker from day 1 and owners are leaving broker work for real jobs. Company just had DOT audit and passed with no issues.  I know its cheaper to start from scratch but will savings I get from established business be worth it when I get insurance and start shopping for loads?
thank for any advice u may offer.
Luke

ANSWER: Luke, I obviously don't know all of the details but my instinct is that a $2000 investment just might be worth it for the reasons you mentioned.  If you add up all of your start up costs I think it won't be as inexpensive as you might think.
Just be sure what you are buying.  Are you getting both Broker and Contract Carrier authority?  With both you will be able broker to other carriers when you have more loads than you can handle.  You can also get access to the broker boards to find loads for your small fleet.
DXo you have customers lined up?  What region/state are you in?



---------- FOLLOW-UP ----------

QUESTION: Thanks Jim,
The company actually is set up with broker authority and carrier authority. I have a few possible accounts lined up, or at least they will give me chance to haul for them. We will be doing mostly flatbed work, but I would like to possibly put a car carrier on road as well as I have contacts in that business. How do I do a thourough search on the mc# to check for any issues and or debts that the company might have?  I plan on purchasing the mc# from current owners in next few weeks and adding the 2 or 3 drivers I have lined up and getting things rolling.  Will be pulling loads from brokers while I work on getting opportunity to pull for accounts that I have in mind. Any suggestions you may have for newbie like me who knows trucking business but first time going on own business wise.
thanks

Answer
Luke, here is the link to the FMCSA SAFER website which will give you the publicly available information including authority, insurance, safety record, etc.
http://www.safersys.org/CompanySnapshot.aspx
There are also links to a lot of good information on their main websitel; http://www.safersys.org/
And you can gather more from the FMCSA website: http://www.fmcsa.dot.gov/registration-licensing/NewEntrant-faq.aspx?
The debts and liabilities are not attached to the MC# but to the actual business entity be it a corporation, partnership, LLC, or individual.  You do not want to buy the company, just the assets which would be the Name and the MC# and DOT#.  I recommend contacting an attorney to structure this as an asset purchase only.  If you don't have a good attorney I suggest getting one who specializes in Transportation law. A little more up front can save you a lot in the long run.  Look here to find one:
http://www.translaw.org/index.cfm?fuse=member_lookup
Hope this helps.
Jim.