Steps Required For Getting Motor Carrier Authority
Trucking is one of the most promising businesses to start in the United States. People are attracted to it because it enables them to make good in a rapidly growing industry. But there are several requirements set up by the government that one should fulfill to start this business. The most essential of them is getting the motor carrier authority. The recipient of this authority can start their business under the legal framework. In this article, you will find the steps you should follow for getting the motor carrier authority for your trucking business, so keep reading!
Your primary expense
The first thing you need to start your business is buying the trucks. Not all people have the funds to buy new trucks on a whim. Getting the trucks is the first step of your journey because authorities check your fleet before registering your company. The best option is buying new trucks for your business. however, you can buy used trucks at a cheaper price. Another option is getting trucks on lease. You are legally allowed to get loans or find investors to finance your new trucking business.
1. Finding Investors
Investors can provide money, support, and insight to run your new trucking business properly. Without their help, you may find yourself figuring out all things on your own, which is not a good thing to begin with. But attracting the investors is not an easy task. You will have to get better at communication skills if you aren’t good at persuading people, so you can find investors for your new endeavour.
2. Getting Bank Loans
Bank loans are often the choice of most people because it doesn’t require holding meetings with potential investors. It also requires low effort as you don’t have to move from office to office to get these loans. However, loans come with hefty debts, something that you should care about.
Create Your Company
Before you move on to the next step of getting the registration, you have to ensure that you are contacting the authorities on behalf of your newly established company. There are three basic business models that you can adopt:
LLC stands for Limited Liability Company. This model is best for those who want to secure their assets. In this business model, you don’t have to worry about anything if you fall short of paying your debt or completing any expenses. Any authority will not seize your assets if you don’t make the payments.
Building a corporation is a good idea if you want to operate your business on a greater scale. Corporation structure helps you expand your business and meet the constant changes in your business. This business structure also helps you stay protected from any seizure of your assets.
5. Self Proprietorship
This company structure makes you the only owner of your trucking business. It is popular among entrepreneurs who want to take complete control of how they run their company. However, if you don’t pay your dues, your lenders may seize your assets.
Your Insurance Plan
FMCSA requires all the companies to buy an insurance plan before proceeding to register a company. This requirement makes your company less vulnerable to any future damages and makes the authorities less worried about any harm your service can inflict on people. The trucking business’s insurance plans are significantly different from common insurance plans that you might already know about. Make sure that you assess all the available plans before choosing the best for your trucking business.
Go Ahead For Registration
There are several registrations required before you get your motor carrier authority to operate your business. You need to get UCR, IRP, IFTA, and HVUT registration to become eligible for final registration. All these registrations require complete paper filing and record-keeping along with paying the fees. And there might be some problems in the application process from your side, so you might have to revisit the offices if they call you in person. But according to the legal framework, you can hire a company to apply in your place for the motor carrier registration. A professional company can help you prepare all the documents, fill them correctly, and submit them promptly to all the required offices. They can take care of all the processes at an affordable price.