Trucking: starting a small 4 carrier trucking business, interstate motor carriers, motor carrier division


Question
I will be using a F-350 dually for hauling cars locally do I need a specific license for hauling? Also if I want to transport to close states near me would I need a license state to state?

Answer
Hello Jermaine....
INTRASTATE-(NOT CROSSING STATE LINES)
I assume you're intention is to transport other people's cars for hire.  Based on that assumption, the intrastate (not crossing state lines) part of your business will be regulated by your state's laws and motor carrier regulations.  Most states require any for hire motor carrier to obtain a state DOT number and some require a US DOT number even if your operation is completely intrastate.  Since you didn't advise me of which state you would be operating inside, I can't elaborate on the requirements of your state.  My suggestion is to check with your state's Motor Carrier Division of the Department of Transportation.  Most states have a website where the information you need is readily available.

INTERSTATE (CROSSING STATE LINES)
If you decide to transport to states close by or any state outside your base state, you will require a federal motor carrier authority (MC#).  You can register an interstate motor carrier and obtain authority from the US DOT's FMCSA.  This can be accomplished on line by logging on to

http://www.fmcsa.dot.gov/registration-licensing/online-registration/onlineregdes...  

Also I suggest you visit the FMCSA website to become familiar with the regulations for interstate motor carriers.  

http://www.fmcsa.dot.gov/rules-regulations/rules-regulations.htm

A couple of quick points, not to be considered all inclusive by any means, but you'll need to register your company name (DBA-Doing Business As) with your state.  Usually that is done with the Secretary of State but you'll need to check with your particular state to be sure.  

You'll need to register with the FMCSA, as mentioned above, to obtain a US DOT number assignment and motor carrier authority.  Companies that operate commercial vehicles transporting passengers or hauling cargo in interstate commerce must be registered with the FMCSA and must have a US DOT Number. Also, commercial intrastate hazardous materials carriers who haul quantities requiring a safety permit must register for a US DOT Number. The US DOT Number serves as a unique identifier when collecting and monitoring a company’s safety information acquired during audits, compliance reviews, crash investigations, and inspections.  All first-time carrier applicants for a US DOT Number will be automatically enrolled in the FMCSA New Entrant Safety Assurance Program. This program requires new entrants to pass a safety audit and maintain acceptable roadside safety performance over an initial 18-month period before they are given permanent registration status.

FMCSA operating authority is also referred to as an "MC," "FF," or "MX" number, depending on the type of authority that is granted. Unlike the US DOT Number application process, a company may need to obtain multiple operating authorities to support its planned business operations. Operating Authority dictates the type of operation a company may run, the cargo it may carry, and the geographical area in which it may legally operate.

All of this also dictates the level of insurance/financial responsibilities a company must maintain. If you transport cars only and offer services to the general public as opposed to operating only under specific contracts, you'll need to register as a common carrier for hire.  The minimum insurance requirements to operate the vehicles you described are $1,000,000 BIPD (liability) and $5,000/$5,000 cargo coverage.  This must be obtained before your authority is activated.  When you discuss insurance quotes with an agent, you should inform them you'll require them to file the appropriate insurance forms for a commercial motor carrier.  

Registration for your US DOT number is accomplished by submitting a form MCS-150.  For your MC# (Operating Authority) you must submit an OP-1 form.  This can all be done on line at the FMCSA website mentioned above.  There is no charge for the US DOT number, however the MC# fee is $300.  

In addition to the US DOT number and MC#, you'll need to file a BOC-3.  A BOC-3 is a filing requirement by the FMCSA and the states that designates agents of process.  A Process Agent is a representative upon whom court papers may be served in any proceeding brought against a motor carrier. A process agent will accept legal papers on your behalf and get them to you in a timely manner, before a judgment can be levied against you. A Process Service Agency manages your designated process agents.  A BOC-3 is a filing requirement by the Federal Motor Carrier Safety Administration (FMCSA) and the states that designates agents of process.  A partial list of authorized Process Server Agencies can be found at http://li-public.fmcsa.dot.gov/LIVIEW/pkg_menu.prc_menu?pv_choice=BL_COMP&pv_vpa...  The cost should be $35-$75 depending on the company and is a one time fee as long as your authority remains active.

You'll need to register for the Unified Carrier Registration (UCR)system. For-hire motor carriers transporting property in interstate commerce in commercial motor vehicles that have a gross vehicle weight rating or gross vehicle weight of at least 10,001 pounds whichever is greater, are required to register.  To obtain additional information and for on line registration go to http://www.ucr.in.gov/

The above information should not be considered "all inclusive", but does cover the basic requirements for an interstate carrier transporting cars.  There are numerous other requirements including CDL (if GVWR/CGVWR is 26,000 lbs or more); Hours of Service (drivers logbook); company records; truck & trailer inspections; drug testing program (for CDL operators); Apportioned Plates, IRP, IFTA and host of other regulatory issues.  

I have posted a checklist/guide on another website that has a more thorough list of requirements for an interstate operation such as the one you describe.  It can be found by going to http://stopillegaltrucking.com/ and going to the forum pages. That web site is operated by the "Stop Illegal Trucking" organization.  The mission of "Stop Illegal Trucking" is to increase awareness of the issue of illegal truckers while educating and informing enforcement agencies, government representatives, and the general public.  We also provide sources for advice and guidance for new entrants as well as established trucking companies to assist them in operating within the regulations.  We offer an open forum where members can discuss issues related to the domestic freight motor carrier industry.  I invite you to visit the website (http://stopillegaltrucking.com/) as a guest.  If the information is of value, I invite you to become a member supporting the organization's mission and participate in the forum discussions.  Membership is free and there are no fees.

The requirements to operate an interstate motor carrier may appear complex and overwhelming at first.  However, with a little time, patience, and assistance you can satisfy all the requirements and operate a legal interstate motor carrier business.

I hope this helps a little.  If you have additional questions please feel free to ask follow up questions here on AllExperts or you may find the answers to your questions at the FMCSA website or the "Stop Illegal Trucking" website.

Thanks for the question and I sincerely wish you the best luck and success with your new business venture.

...Don
SEMO Motor Transport Service
stopillegaltrucking.com