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What Is USDOT Number And Its Importance?

January 28, 2022 0USDOT Number

Running a trucking business in the United States requires hoops to jump through. These include obtaining USDOT Numbers, documentation, route check, and many more. The Department of Transportation mandates registration of USDOT Numbers for trucking companies to evaluate their safety practices. The Federal Motor Carrier Safety Administration issues USDOT Numbers for trucking companies. They also regulate the transportation industry to reduce accidents and injury by monitoring commercial vehicles and trucking companies. These ensure safe, modern, and efficient transport systems in the United States. Are you wondering if you need to have a USDOT Number.? Read on as Global Multi services explain USDOT Number and their importance

WHAT IS USDOT NUMBER?

USDOT Number is a unique identifier issued to trucking companies by the Federal Motor Carrier Safety Administration after registering their vehicle with the Department of Transportation. It regulates the commercial driving industry to reduce accidents and injury. It also allows the collection and monitoring of trucking company safety information from safety audits, reviews of compliance, and investigations.

The USDOT ensures the United States has safe, modern, and efficient transport systems. Additionally, potential customers can use a USDOT Number to see if the trucking company they hire has registered with the U.S. Department of Transportation. They can also check its safety information from the FMCSA website.

WHO NEED THE USDOT NUMBER

The USDOT number is mandatory for trucking companies transporting passengers or hauling cargo in interstate commerce. It is also compulsory for trucking companies to transport hazardous materials across interstate and intrastate in quantities requiring a safety permit.

You also need a USDOT Number if you operate vehicles with the following:

  • GVWR, GCWR, GVW, or GCW with 10,000 lbs and above.
  • Transport more than eight people with the driver for compensation.
  • Transport more than 15 passengers with the driver without compensation.
  • Travel from one place to another within or outside a state (including outside the United States).
  • Travel from one place to another within a state through other states.

IMPORTANCE OF USDOT NUMBER

Doing a diligence check on the USDOT Number of commercial vehicles is essential to ensure safety and scam. The search provides you with information that will allow you to make informed decisions when choosing a trucking company to move your freight based on their past performance. Here is the importance of the USDOT Number.

COMPILE SAFETY RECORDS

The Federal Monitor Carrier Safety Administration has websites that provide easy access to valuable safety-related information on trucking companies. But you must have the Company name, USDOT Number and Motor Carrier to access it.

SHOW SAFTEY RATINGS

The Federal Motor Carrier Safety Administration uses safety ratings to indicate trucking company compliance. A blank safety rating often shows the company has a high crash history. The safety rating is grouped into the following:

  • Satisfactory: The record reveals no evidence of non-compliance with the safety requirements.
  • Conditional: The document displays the trucking company was out of compliance with one or more safety requirements.
  • Unsatisfactory: The records indicate evidence of non-compliance to safety requirements.

AVOID FRAUD

Checking the Federal Motor Carrier Safety Administration database protects you from hiring trucking companies operating without proper certification. The company profile on the website contains operating status like active or authorized for household goods. Therefore, trucking companies listed on the website as “Out of Service” or “Unauthorized for Household Goods” must be avoided. Also, USDOT Numbers that do not match their company profile are a red flag that indicates the company is not safe.

CONDUCT SAFETY AUDIT

The FMCSA certified auditor is responsible for conducting safety audits at the offices of the trucking companies or electronically by submitting relevant documents to FMCSA online or by mail. The Federal Monitor Carrier Safety Administration often informs trucking companies of the type of audit they want to carry out.

During the Safety Audit, trucking companies will provide the following:

  • Documentation that verifies they have established safety management controls.
  • Documents about drivers and vehicles.
  • General operating procedures.
  • Record-keeping requirements.

SHOW PREVIOUS CRASHES

The Federal Monitor Carrier Safety Administration website lists the crash history of trucking companies. The section has four columns:

Fatal: The number in the column shows fatal accidents experienced by trucking companies
Injury: The number in the column shows the company injuries obtained by trucking companies
Tow: The number in the column shows the towing history of the trucking companies
Total: The number in the column shows the total crash incurred by the company.

 

 

 

 

 

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Things To Do When Starting A Trucking Business

January 21, 2022 0IRP RenewalMC Authority

Trucking companies follow strict regulations from the Federal Motor Carrier Safety Administration to stay compliant. From obtaining MC Authority, processing UCR Renewals, to IRP Plates Renewal.

The trucking industry is one of the most significant and ever-growing industries in the United States. These present business opportunities for many people in the country. Though highly competitive, it has great potential for entrepreneurs that understand the business.

There is so much benefit to running a trucking business. These include: choosing your niche, routes, rate per miles, the companies to work with, and many more. It also provides a perfect combination of freedom and financial success.

But despite all the benefits mentioned above, starting a trucking business is lucrative and capital intensive, with multiple costs associated depending on your business niche. Also, it can sometimes be overwhelming with hurdles and challenges. That is why many people avoid venturing into the business despite the potential benefits they can enjoy.

Do you want to start a trucking business but don’t know where to begin? Global Multi Services highlights a straightforward guide that will steer you in the right direction.

WHY DO YOU NEED TO VENTURE INTO THE TRUCKING BUSINESS?

With driver shortage, increasing freight demand, and rates, you have the potential to make a lot of money by venturing into a trucking business. Aside from the ease of access into the industry, you will also build a sustainable business. But you will need to do thorough research to understand how the industry works. You also need to look for customers and contracts because they do not magically appear.

Here are things to do before starting a trucking business.

HAVE A BUSINESS PLAN

Having a business plan is very crucial when starting a trucking business. Just as a new job requires a fresh perspective and goals, a new trucking business needs an organized plan. A business plan is your fundamental guide and roadmap that determines your success. It is a GPS that gets you from where you are now to where you want to be.

It also helps you articulate your value proposition and shows potential obstacles down the road. Your business plan should include your financial budget, the type of equipment you plan to buy or lease, market niche, and other crucial business decisions.

CHOOSE A NICHE

Targeting the right market niche is crucial when starting a trucking business. Having a niche help streamline your operational processes and resources, optimize your sales, avoid competition with many companies and establish your name in the industry,

PERMITS AND LICENSE

Trucking companies must have specific licenses and permits to operate legally in the trucking industry. The type of permit you need depends on your market niche, base state, the type of freight you haul, and many more.

HOW TO STAY IN COMPLIANCE IN THE TRUCKING BUSINESS

Staying in compliance in the trucking industry requires obtaining several permits. The permits allow you to operate legally as a trucking business and also allow your trucks to transport freights across state lines. Having all these permits prevents you from paying hefty fines and penalties.

Here are permit and renewal processes to stay compliant in the trucking industry.

ACQUIRE YOUR MC AUTHORITY

MC Authority is mandatory for trucking companies operating across the United States. The authority indicates the Federal Motor Carrier Safety Administration (FMCSA) has given the trucking company permission to transport goods on public roads. There are other trucking-related registrations that a new business must obtain. They include IRP Plates, UCR Permit, IFTA Permits, and many more.

OBTAIN IFTA LICENSE

The International Fuel Tax Agreement is mandatory for trucking companies operating across interstate and international borders. Qualified motor carriers must register in their base state and obtain IFTA License with two IFTA Decals. They are also required to file IFTA Fuel Tax Returns quarterly in their base state.

PROCESS UCR RENEWAL

Trucking companies must obtain UCR Permit and process their UCR Renewals annually to run their trucking business smoothly. The Unified Carrier Registration is a federally-mandated program for trucking companies operating interstate and internationally. Trucking companies must apply in their base state and renew their permit before the expiring date to avoid penalties.

FILE IRP PLATES RENEWAL

The International Registration Plan allows trucking companies to operate across multiple jurisdictions using a single license plate. But they must register in their base state to obtain IRP Plates. All registered motor carriers must keep records of the distance covered in each member jurisdiction to process IRP Plates Renewal.

 

 

 

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Corporation Filing: Things To Consider Before Incorporating Your Business

January 6, 2022 0Corporation Filing

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.

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

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