The corporation is rigid and subjected to many oversights. The process of a corporation filing is also unquestionably complex. Therefore, it is vital to ensure you are not missing any critical information. Rushing through corporation filing to launch your business faster can affect your future operational success.

Hence, it is necessary to have a deeper understanding and vast knowledge before structuring your business legally as a corporation.

A corporation exists beyond the founder, and shares are transferred easily from one owner to another. Incorporating your business separates it from your assets. But you may be wondering whether a corporation is necessary for your small business.

Incorporation helps to limit your liability for business obligations. It is also a good option if you want investors to invest in your business. Read on as global Multi Services explains things to know before incorporating your business.

Corporation Filing

The Right Business Structure

Before incorporating your business, you need to know if structuring your business is the best way to reach your business goal.

There are four major business structures, and you need to evaluate the pros and cons of each. A corporation is only attractive if you want to build a rigid managerial hierarchy and anticipate a rapid expansion of your business.

It is also beneficial for asset protection and the transfer of shares. However, corporations are subject to strict reporting and compliance regulations. The shareholders are responsible for making major business decisions.

The other business structures available are sole proprietorships and partnerships. Their management structure is flexible and taxed as personal income to their owners. Also, they do not have reporting or compliance requirements.

Finally, you can also structure your business as a limited liability company. LLC allows you to benefit from personal liability protection. That means member assets are protected if the business loses money, is issued, or is subject to government fines.

Where You Want To Incorporate Your Business

Your business location is one of the crucial decisions after choosing a corporation. An attorney will give you a thorough breakdown of the corporation filing in each state.

The attorney can also help you get permission to conduct business in multiple states through a foreign qualification process or a multi state registration process.

However, be careful when choosing your state of incorporation. The state’s laws will impact your corporate tax rate, reporting, compliance, baselines, and many more.

Choosing The Corporate Officers

Corporations are rigid and complex compared to sole proprietorships, partnerships, and limited liability companies. The shareholders appoint corporate officers to run the daily affairs of the business.

Therefore, you will need to list the names of the corporate officers with their functions in your articles of incorporation. You will also list the number of shares of stocks your corporation can issue. Your state of incorporation determines the minimum number of directors. You’ll also need to list

Many industries rely on the trucking industry to transport goods and raw materials from one place to another in the United States. These have presented a business opportunity for many trucking companies. But they need to obtain MC Authority and other permits to operate interstate.

The trucking business is lucrative once it starts running because of its high demand. However, the cost of starting a trucking business is intensive. The capital is expensive, with multiple operational costs associated with your business model.

Starting a trucking business also requires many costs related to trucking specifically and the ones incurred through the Federal Motor Carrier Safety Administration. In this blog, Global Multi Services will break down the cost of starting a trucking business.

MC Authority

Trucking Related Cost

Trucking-specific costs are paramount and assertive when starting a trucking business. It gives you independence and step into more management roles when compared to only collecting income from driving. Trucking costs are one of the largest expenses categories unique to the trucking industry. And the first costs you should be concerned with when establishing your trucking business.

According to trucking reports, one mile costs approximately $1.38 for a semi-truck, which is incredibly high for someone just getting into the business. But it can be lower depending on the type of trucking niche you plan to venture in.

The Cost For Trucking Equipment

The trucking industry is incredibly capital intensive because safety is paramount, and you need quality equipment to operate safely. Having the trucks, proper coverage, and other equipment is necessary to carry out business. And the cost of your trucking equipment is dependent on your market niche. Two options are involved when purchasing trucking equipment:

  • Purchase trucks and hire truck drivers to drive them.
  • Hire drivers that must provide their trucks.

Although the first option is often lucrative, it requires a lot of money to purchase all the equipment.

Truck Maintenance Cost

In addition to purchasing trucks and other equipment, you will also need regular preventive maintenance. These indicate issues from the trucks and keep them in good working condition to protect drivers, freight, and other road users.

Truck parts that need proper maintenance are brakes, alternator, wheel, batteries, airlines, and others. Taking care of your trucks avoids future expenses. But they are costs you need to consider when running your trucking business.

The Cost For MC Authority

MC Authority is one of the legal requirements mandatory to operate your trucking business in the United States. Motor Carrier Authority is a license issued to trucking companies by the Federal Motor Carrier Safety Administration, allowing them to transport freight on public roads.

Trucking companies also need to file paperwork to stay compliant with the trucking industry. These include applications for other permits, licenses, and fees. It also prevents them from paying hefty fines and penalties.

The Bottom Line

As you can see, establishing and running a trucking business is not a cheap endeavor. It also requires many equipment, high operating and maintenance costs to keep it running successfully. Therefore, do thorough research and prepare well before venturing into the business.

Trucking companies are responsible for transporting raw materials and finished products from one location to another in the United States. Hence, they need special licenses and permits like IRP Plates, UCR Permits, MC Authority, and many more to operate across state lines. They must also follow all the rules governing the trucking industry. These regulations are issued by the Department of Motor Carriers and enforced by the Federal Motor Carrier Safety Administration with help from State Police Departments throughout the United States.

The purpose of the FMCSA is to create uniform travel standards and promote safety by helping to prevent accidents. The FMCSA also ensures the trucking companies and their drivers comply with the regulations. Read on as Global Multi Services takes us through the responsibilities of trucking companies.

IRP Plates

Better Logistics And Fleet Services

Trucking companies transport goods and products from one place to another in the United States. They provide logistics and dedicated fleet needed for each shipment, saving time, energy, and money by eliminating excess inventory. They also offer better flexible payment options, so you don’t have to worry about having enough capital every time. With their services, you will never stress over late orders, delivery delays, missing packages, and many more.

Proper Maintenance And Repair services

Trucking companies must ensure their trucks, trailers, and equipment they use are in good condition mechanically and safe to drive. That means trucking companies must perform routine inspections and schedule regular maintenance to identify and repair any potential problems before the truck hits the road.

Compliance With Standards And Regulations

The trucking industry is governed by regulations designed to keep drivers safe on the road. These include Hours of Service regulations, DOT Registration, Weight Restrictions, and many more. Failure to adhere to these regulations can create catastrophic dangers for truck drivers and other road users. It can also cause accidents and injuries.

Safety programs are also put in place to ensure compliance with various safety requirements of the regulations. Trucking companies must demonstrate it has adequate safety management controls to ensure compliance with the Federal Motor Carrier Safety Administration.

Registering For IRP Plates

The IRP is a reciprocal agreement established between the continental United States and the Canadian provinces in 1994. The plan facilitates apportioned fees collection from commercial vehicles traveling across two or more jurisdictions. The apportioned fees are calculated based on the mileage covered in each jurisdiction and the vehicle’s weight. Trucking companies need to register in their base jurisdiction to obtain their IRP Plates and fill their IRP Plate Renewal which varies from state to state.

Performing Background Checkups On Drivers

Trucking companies must perform a background check of commercial driver licenses on potential drivers. The drivers must also undergo drug and alcohol tests because of the high-risk nature of the driving jobs. Additionally, drivers with multiple driving under influence convictions or certain traffic violations in the past are ineligible for the position.

Some trucking companies often overlook these testing and background checks to fill vacant positions as quickly as possible. These can lead to hefty penalties and license cancellation from the Federal Motor Carrier Safety Administration.