All the permits and regulations that trucking companies in USA need.

COMMERCIAL DRIVER'S LICENSE (CDL)

In the world of freight transportation, obtaining a Commercial Driver's License (CDL) is a fundamental step for many truck owner-operators. However, it's important to note that not all vehicles require this type of license. Those weighing less than 26,000 lbs can be operated with a regular driver's license.

It's important to consider that depending on the type of equipment and cargo you intend to transport, such as tank vehicles and hazardous materials, additional endorsements on the license may be necessary.

For those in need of a CDL, here are the FMCSA requirements.

To acquire this CDL, training, permit acquisition, written exams, as well as pre-trip inspection and driving tests are necessary. This process can cost up to $8,000 USD, depending on various factors such as location and training program. However, there are options to finance this training through government programs, scholarships, and corporate programs.

Business Name Registration

To register a business name in the United States, follow these steps:

  1. Check Name Availability: Conduct a search in the state where you plan to establish it to ensure it's available.

  2. Choose the Right Business Structure: Select from options like LLC, DBA (Doing Business As), Partnership, or Corporation, based on your needs and preferences.

  3. Gather Required Documentation:

    • Business Name: Choose the name you wish to register.

    • Business Address: Provide the physical address of your business.

    • Owner(s) Information: Full name, address, and tax identification number of each owner.

    • Description of Business Activities: Briefly outline the activities you'll conduct under the registered name.

    • Contact Information: Provide a phone number and email address.

    • Registered Agent Information: If necessary, include the name and address of the registered agent to receive legal documents on behalf of the company.

  4. Submit Documentation and Pay the Fee: Send the required documentation along with the corresponding fee payment to your state.

It's essential to research the specific requirements of your state and, if necessary, seek legal advice to ensure a proper and complete registration process.

Employer Identification Number (EIN)

An Employer Identification Number (EIN), issued by the Internal Revenue Service (IRS), is essential for businesses, including freight transportation, for tax identification purposes.

This nine-digit number is used for various functions such as filing federal taxes, hiring employees, and opening commercial bank accounts. The absence of an EIN when required can result in fines and legal complications, so obtaining it is essential for regulatory compliance. Additionally, having an EIN offers advantages such as adding professionalism, simplifying financial management, and protecting owners' personal assets in case of legal issues, besides facilitating employee hiring and access to commercial credit for the growth and maintenance of freight transportation operations.

USDOT

All companies using commercial vehicles in the transportation of goods between different states in the United States must obtain a USDOT number (U.S. Department of Transportation).

This unique number serves as identification for storing information related to safety in audits, compliance reviews, investigations, and inspections.

Even if you operate exclusively within your state (known as intrastate commerce), most states still require you to obtain a USDOT number to operate legally.

For a definitive answer on whether you need a USDOT number or not, visit the FMCSA website and complete their online questionnaire.

The DOT number is obtained online and received immediately. Additionally, you can apply for your operating authority at the same time (MC).

MC

The FMCSA MC Number, or Motor Carrier Number, is a unique identifier assigned to motor carriers involved in interstate transportation of passengers or goods, granted by the Federal Motor Carrier Safety Administration (FMCSA).

This number is a legal requirement for any carrier involved in interstate commerce, used to track and regulate their activity, ensuring compliance with safety regulations and insurance requirements. Obtaining an MC Number involves a detailed application process with the FMCSA, which includes providing information about the company and meeting insurance requirements, as well as maintaining ongoing compliance with regulations like BOC-3 and updating information as necessary, renewing the number when required, and participating in safety programs to operate legally as a motor carrier in the United States.

If you need more information, you can find it in our blog article.

BOC-3

The BOC-3, or Blanket of Coverage form, is an essential requirement for those operating as motor carriers (MC) or freight brokers in the United States, established by the Federal Motor Carrier Safety Administration (FMCSA). Its primary function is to designate process agents in each state where a company conducts operations. Unlike some licenses or permits that require annual renewal, the BOC-3 remains valid until it is decided to change process agents or discontinue operations in a specific state. However, it is crucial to keep the BOC-3 information updated to ensure its effectiveness, as these process agents are legal representatives who ensure the timely receipt of legal documents and notifications in case of legal issues or disputes related to operating as a motor carrier or freight broker. If designated process agents change their contact information or if the business expands to new states, it is necessary to update the BOC-3 to designate updated process agents in those states.

Insurance

Truck insurance in the United States is essential to protect truck owners and transportation companies from the risks associated with operating commercial trucks.

Coverage types include liability, property damage, collision, comprehensive, cargo liability, and personal injury.

Insurance rates vary depending on the type of truck, its use, driving history, and location, among other factors. It is important to compare options from various companies to find the best coverage at the best price.

Additionally, in the U.S. truck insurance market, there are numerous insurance companies, each with its own rating or ranking in terms of service quality, financial strength, and customer satisfaction.

Unified Carrier Registration (UCR)

The UCR Permit (Unified Carrier Registration Permit) is an essential requirement for individuals and businesses involved in interstate transportation in the United States. Issued by the Federal Motor Carrier Safety Administration (FMCSA), this permit seeks to promote uniformity and consistency in the regulation of motor carriers.

You should apply for the UCR Permit as soon as you engage in interstate transportation, as the registration period runs from October 1st to December 31st each year. This permit is mandatory for most individuals and businesses involved in interstate transportation, including motor carriers, private motor carriers, freight forwarders, and brokers.

Although there are certain exemptions for some vehicles, it is crucial to verify the specific situation with UCR authorities to maintain compliance and avoid penalties. The price of this permit depends on the number of vehicles owned by the individual or company.

MCS-150 Form

The MCS-150 Form is a document used by the Federal Motor Carrier Safety Administration (FMCSA) in the United States to gather information about commercial vehicle and cargo transportation operations. This form allows transportation companies to provide updated data about their company, including details such as type of operation, vehicle fleet, and travel routes.

Its primary purpose is to help the FMCSA track and regulate the trucking industry, ensuring compliance with safety and operational standards while improving road safety by identifying and addressing risks associated with commercial transportation operations.

The MCS-150 is very important because through it, you update the DOT National Registry of Carriers and its information such as: miles traveled with your company year over year, changes like address, email, number of vehicles, and drivers, among others. To do this, you need to know the DOT PIN and EIN.

FMCSA Drug & Alcohol Clearinghouse

The Clearinghouse is a database of the FMCSA containing information on alcohol and drug testing. Its aim is to prevent drivers with positive test results from being hired again by other carriers without restrictions. All truckers holding a CDL must be registered in the Clearinghouse.

To register, you must first access the FMCSA portal and request a Clearinghouse user role. This is done using the same portal used to request your USDOT and MC numbers. Another task prior to Clearinghouse registration is to designate an external administrator or consortium for your drug and alcohol testing program. They are responsible for uploading all test results to the portal. This third party must be registered in the Clearinghouse to represent you and access information on your behalf.

IRP

IRP (International Registration Plan) is a registration agreement that allows commercial vehicles to travel and operate in multiple states in the USA. It is mandatory for vehicles weighing 26,000 lbs or more to have an IRP.

When you register to obtain IRP credentials in a state, you receive cards indicating in which jurisdictions you can operate, and the fees are distributed based on the miles traveled in each state.

IRP credentials are issued by the motor vehicle or transportation departments in each state.


IFTA

The International Fuel Tax Agreement (IFTA) is an agreement between states in the U.S. and Canadian provinces that simplifies the payment of fuel taxes for commercial vehicles traveling and operating in multiple jurisdictions. This agreement is essential for companies and drivers operating vehicles weighing over 26,000 pounds or with three or more axles that cross state or provincial borders while transporting cargo.

Under IFTA, vehicles must be registered and display IFTA decals in the state or province where the company is registered. Every three months, it is mandatory to submit a quarterly fuel tax report, detailing where fuel was purchased and the miles traveled in each state or province. This process allows for a fair distribution of fuel taxes paid among the different jurisdictions. You can easily and quickly complete this process through our app.

IRS FORM 2290

The IRS Form 2290 is used by owners and operators of heavy vehicles to report and pay the federal tax on highway use. This tax applies to trucks and tractors with a gross weight of over 55,000 pounds traveling on public roads. The collected tax is used to fund the construction and maintenance of roads and highways in the United States.

Owners and operators must file Form 2290 annually. The tax period begins on July 1st of one year and ends on June 30th of the following year. Therefore, the tax must be paid for each registered vehicle during this tax period. The deadline to pay the tax is the last day of the month following the month in which the vehicle is placed in service. The amount to pay may vary depending on the vehicle's weight and the number of miles traveled during the tax year.

State Special Permits

In some states, carriers operating out of their area must comply with additional requirements besides IFTA and IRP. If you plan to travel through these states and adhere to their weight rules, you'll need to obtain additional special permits.

Trip permit Oregon

The Oregon PUC Trip Permit is a requirement for carriers operating commercial vehicles in Oregon but registered outside the state. This permit grants them the necessary authorization to legally use Oregon's state highways. Typically, it is required for trucks with a gross weight of 26,000 pounds or more, as well as trailers and other commercial vehicles conducting business activities in the state but registered elsewhere. Obtaining this permit ensures compliance with state regulations and helps avoid fines and penalties for operating without proper authorization. Usually, this permit must be renewed annually, although there may be options for shorter periods based on the carrier's needs.

KYU Kentucky Permit

The Kentucky Permit (KYU) is essential for carriers operating commercial vehicles within the state of Kentucky, particularly for those with a gross weight of 60,000 pounds or more. Issued by the Kentucky Department of Revenue, this permit helps track and collect taxes on road usage and fuel to fund the state's road infrastructure. It must be renewed annually, and non-compliance can result in fines and penalties.

WDT Permit New Mexico

The Weight and Dimension Transportation Permit (WDT) of New Mexico is essential for commercial vehicles that exceed the weight and dimension limits set by state law. Issued by the New Mexico Department of Transportation, it allows legally operating vehicles that surpass these limits on the state's roads. The primary aim is to ensure road safety and protect road infrastructure by regulating the traffic of oversized vehicles. Compliance with WDT requirements is crucial to avoid significant fines and penalties.

HUT in New York

The Highway Use Tax (HUT) Permit in New York is required for commercial vehicles weighing over 18,000 pounds or with three or more axles. Issued by the New York State Department of Taxation and Finance, it aims to collect taxes on fuel used by these vehicles. The revenue generated is allocated to maintaining and improving state and local roads. Compliance with HUT requirements and timely reporting is essential to avoid fines and penalties.

Connecticut

The Connecticut Transit Permit is essential for commercial vehicles traveling through the state. Issued by the Connecticut Department of Transportation, it allows trucks, trailers, commercial buses, and other commercial vehicles to legally travel on Connecticut roads. Typically, it is required for vehicles with a gross weight exceeding 26,000 pounds. This permit must be renewed annually to ensure legal operation and avoid fines for non-compliance.

Washington

The Washington Commercial Vehicle Permit is essential for commercial vehicles operating in the state, primarily those exceeding a gross weight of 10,000 pounds or more, or having three or more axles. Issued by the Washington State Department of Transportation, this permit must be renewed annually to ensure the legal operation of commercial vehicles and avoid fines for operating without proper authorization.