QuestionIm thinking of starting my own truck company with just one truck and me as a driver, How to get stated? Should i buy used or new? i can buy new Anything under 140k. What trucks are good. Im in LOVE with the new International Lonestar, or could get a Volvo VN 780, anything and everything you could help me with like how much on top of the price of the truck to really get me going and trucks and truck prices. Thank you Thank you very much. P.S Im 29 years old.
AnswerThank you for the question. Please allow me to make a couple of comments and ask a few questions before I try to provide detailed guidance. Once we have the business and legal side determined, it will be easier to discuss the type and model of truck that would best suit your needs. For now I'll just give you some general information and we can get in to details later. A business plan is highly recommended and frequently it is critical to the success of any new start company. It needs to be be prepared as a "road map" to accomplish your objectives. We can discuss that in follow up questions also.
Where would you be based and what type of operation would you prefer? By the type of operation, I'm referring to flatbed, dry box, reefer, livestock, or maybe even specializing in over size loads. There are a number of ways you can start and I would need to know a little more about what you want to do.
If you have commercial truck driving experience already, that would serve to your advantage in making decisions. If not and you're just starting in the commercial driving field, you might want to consider going through a CDL training school and driving as a company driver before you make a major monetary investment. Most reputable driver training schools provide placement assistance as a part of their package.
Another way is, you can purchase a truck and lease on to another company as an owner-operator. This would permit you to run under their motor carrier authority (MC#) and insurance.
If you plan to actually start your own company as a truly independent owner-operator, you'll need to establish credentials as a common motor carrier business. To do this, you will need to register for a US DOT number assignment and authority (MC#) to haul for hire across state lines. Registration can be done on line at the FMCSA website. There is no charge for the US DOT# and the $300 fee for the MC# can be paid by credit card on line.
A couple of other filings are required before the numbers are activated. Your insurance company will have to file the proof of financial responsibility for liability (BIPD) and cargo insurance. That is done by Form BMC-91 or BMC-91X. You may frequently hear it referred to as an MCS-90. But an MCS-90 filing is an endorsement that must be attached to liability insurance and cargo liability insurance policies. An MCS-90 is not filed with the Federal Motor Carrier Safety Administration (FMCSA). The BMC-91 or BMC-91X filing is submitted to the FMCSA, by your insurer as proof that the MCS-90 endorsement has been properly completed. The minimum required amount of insurance liability coverage is determined by a couple of things. First it is established by the commodities that you haul. With the type vehicles you've mentioned, you would require at least $750,000 BIPD to haul general cargo. It would be $1,000,000 if you transported flammable fuel powered motor vehicles, i.e. cars and trucks. Should you need to haul hazardous materials (HAZMAT) requiring placards, you would need $5,000,000 for the BIPD liability coverage.
The other filing needed before your authority is activated is a BOC-3 form. This is a process server for each state. A process server acts as the person authorized to receive official notifications for your company in that state of operations. That can be done by a single company and will cost $50 to $75 and is a one time charge unless you change process server companies or your numbers are deactivated for some reason.
I think one very important thing to remember when starting an interstate motor carrier business is that you'll be wearing two hats. One as the driver, and the other as the owner of a motor carrier business. Both are regulated and must meet and maintain specific requirements. Both are subject to citations, fines, and other forms of disciplinary actions. It is even possible that the driver and the company can be fined separately for the same offense.
A couple other quick points that may be helpful at this time. If your combined GVWR of the truck and trailer are over 26,000 lbs., you'll need a CDL with the appropriate endorsements, i.e. air brakes, tanker, etc. When a CDL is required, you'll have to have a drug testing program and a documented pre-employment drug screening test in your company files. The easiest way for a small company to meet these mandates is join a consortium. OOIDA has a good program as well as many others. The fee will be about $125 per year.
All drivers of commercial vehicles are required to pass a physical examination by a qualified medical professional. This must be documented on a particular form and carried with the driver at all times as well as a copy on file in your company records.
As a driver, you'll be regulated by the "Hours of Service" (HOS) rules and will have to maintain a driver's log book. The company must also maintain records for specified period of time. Presently as a single driver, you're allowed to drive no more than 11 hours and a full day including on-duty driving, on-duty not driving, sleeper birth time, and off duty is 14 hours. That means from the time you log on for your daily initial pre trip inspection, you can not drive after 14 hours have lapsed. Log books are kept on either a 60 hour/7 day or a 70 hour/8 day method. In general, this means that after you have logged 60 or 70 hours (depending on the method used) or at the end of the 7 or 8 day period, you must take a 34 consecutive hours break. There are several other rules and definitions that you'll need to be knowledgeable about to comply with the HOS regulations, but those are the fundamental points.
All commercial vehicles, including trucks, tractors, and trailers are required to be inspected by a certified US DOT qualified inspector annually. In addition to the mechanical and safety inspection, among other things, you'll need to carry traffic warning devices, usually florescent orange triangles or flares, spare fuses and a fire extinguisher. The power unit must be marked or lettered to be readable in daylight from distance of 50'. Some states require a specific size lettering.
New motor carrier companies commence with the "New Entrant" program for 18 months assuming everything is satisfactory. You can expect an audit a few weeks after your numbers are activated. This is primarily a learning process and for one thing, ensures that the company records contain all necessary files and documentation. We can discuss what is required at a later date when you commence preparation for the audit.
This is not intended to be all inclusive of every thing you'll need to do, but just to give you a little guidance to help you get started. Please feel free to ask any follow up or additional questions. I hope this helps.
// ...Don
SEMO Motor Transport Service
