Truck Company Formation

Start with a business plan that maps out your financial goals, then choose a business structure that’s right for you. Once that’s done, visit the U.S. Small Business Administration’s registration site to learn how to register your business on local, state, and federal levels. Every trucker’s situation is different, so talk to our experts if you need help determining the best type of registration for your company.

Regardless of what type of business structure you choose, the next step is to get an EIN for tax purposes. You can apply online through the IRS website, but if you do this on your own, be sure to carefully read all the information before applying.

The registration process will ask you a number of questions about your vehicle, cargo, number of trucks, weight, and more. After you’ve been registered, you’ll receive a USDOT number that future customers can use to access your information.

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In addition to your USDOT number, you’ll also receive a PIN number to update your information online (when necessary). Keep this PIN number in a safe place. And remember, you have to renew your USDOT number every two years.

Your trucking authority – commonly known as your motor carrier number (MC#) – gives you the legal ability to transport goods. Most of the information required to apply will be similar to your USDOT application. Once you’ve applied through the FMCSA, you’ll be given your number. However, you have several more steps to complete within 20 days of receiving your motor carrier number in order to legally operate. Once all those steps are completed, your motor carrier number becomes active within 2–3 weeks and you’ll receive your certificate in the mail two weeks after that.

A BOC-3 is an important form the FMCSA requires. However, YOU can’t be the one to file it. You’re required to designate a process agent to be served legal paperwork related to your company (if necessary). Luckily, RediTraq maintains lists of reliable process agents in each state that we can refer you to, so we make this step a breeze.

As a result of the UCR Act, individuals or businesses traveling across state lines for work purposes must pay an annual fee based on the size of their fleet. 1–2 trucks are usually $99.99.

​Trucking insurance is vastly different than car insurance. The FMCSA requires you to have $750,000 primary liability insurance and $100,000 cargo insurance. Depending on what you haul, additional insurance may be required. Always report any changes in your operations to your insurance provider to ensure you’re covered in case of an accident. If you need help choosing an insurance provider, check out these 4 Quick Tips to Picking an Insurance Company. 

Depending on where you plan to operate, certain states require specific permits. These permits are commonly based on the gross vehicle weight (GVW) of your truck. For example, New York requires a highway use tax permit for vehicles 18,000 pounds and over. New Mexico requires vehicles over 26,000 pounds to have a weight distance tax account. Our experts can help you determine which (if any) of these required permits apply to you.

If your rig weighs over 55,000 pounds, you are required to file a Form 2290 for tax purposes. Visit the IRS website for more information on Form 2290.

The IRP is an agreement between the United States and Canada that provides for the payment of registration fees based on distance operated in each country. If you’ll be traveling internationally, you’ll have to get registered.

An ELD is an electronic device that tracks hours of service (HOS) for truck drivers. It helps protect drivers from being forced to drive beyond the threshold of safe hours and distance determined by the ELD rule. Here is a list of ELDs from the FMCSA website.

Once you’ve completed all the steps required to legally operate on the road, there are continual regulations from the DOT to keep up with. Failing to stay compliant with the DOT can result in severe consequences, ranging from hefty fines to being put out-of-service entirely.

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Read and download this DOT Compliance e-book to learn how to stay DOT compliant.