Running a trucking business is risky, and moving goods from one part of the state or country to another is even more risky when you consider accidents, theft, vehicle breakdowns, and natural disasters. This type of situation makes it obvious that you need protection for your trucking business, regardless of the scale at which you intend to start the business.
A trucking business on its own is a business that is involved in moving goods of all types from one part of the state or country to another for customers who hire and pay for the services. Do you want to know the legal requirements you need to start a trucking business ? If yes, here is a truck licensing checklist, allow insurance, after we have provided you with:
- Trucking Industry Overview
- Market research and feasibility
- Trucking business plan
- Truck Marketing Plan
- Truck business name ideas
- Commercial Trucking Licenses and Permits
- Cost to start a trucking business
- Truck Service Marketing Ideas
We will consider what it takes to obtain an operating license and permit for your trucking business including insurance coverage and intellectual property protection.
Starting a trucking company Licenses, insurance permits
- The best legal entity to use in a trucking business
When it comes to choosing a legal entity for a business, it can sometimes be difficult to make a choice. This is because there are many forms of organization that you can choose from.
If you are considering choosing a legal entity for your trucking business and perhaps any other business, you have the option of choosing a sole proprietorship, general partnership, limited partnership, LLC, “C” corporation, or “S corporation. It is important to clearly establish that these different forms of legal structure for business have their own advantages and disadvantages.
Before choosing a legal entity for your trucking business, it is important to consider these factors: limitation of personal liability, ease of transfer, admission of new owners and investor expectations and, of course, taxes. If you take the time to critically study the various legal entities that you will use for your trucking business, you will accept that limited liability company; An LLC is the most suitable. You can start your trucking business as a limited liability company (LLC) and in the future turn it into a ‘C’ corporation, especially when you have plans to go public.
Upgrading to a ‘C’ corporation will give you the opportunity to grow your trucking business to compete with the major players in the industry; You will be able to generate capital from venture capital firms, you will enjoy a separate tax structure and you will be able to easily transfer ownership of the company (flexibility in ownership and management structures).
The only reason you should consider starting a sole proprietorship trucking business is when you have no plans to grow the business beyond a single truck and if you are comfortable with the owner’s operator style.
Is a professional certification and license required to operate a trucking business?
If you want to operate your own trucking business, that is, if you want to drive your truck yourself, then you make sure you get the proper training and license needed to drive heavy trucks and others. In the United States of America, large truck and bus drivers require a commercial driver’s license (CDL) before they are allowed to operate.
In the United States of America, Canada, and most of the world, truck drivers undergo special training on how to operate large vehicles before applying for and obtaining their commercial driver’s license (CDL). In addition to the required commercial license (CDL) for your drivers, your trucks must have certificates showing that they can hit the roads too. As such, it will always be necessary to obtain some professional certifications and licenses.
List of Legal Documents You Need to Run a Trucking Business
Here are some of the basic legal requirements necessary before you can successfully start and run your own trucking business:
- Commercial and civil liability insurance
- Commercial Vehicle Operator Registration for Truck
- Appropriate driver’s licenses for drivers
- Assistant licenses for assistants
- Proof of ownership, proper identification and vehicle license
- Taxpayer identification
- Fire certificate
- Certificate of incorporation
- Commercial license
- Business plan
- Confidentiality agreement
- Employment Agreement (Offer Letters)
- Employee Handbook
- Operating Agreement for LLCs
You can also visit the United States Department of Transportation (USDOT), the Federal Motor Carrier Safety Administration (FMCSA), and the Federal Highway Administration (FHWA) to confirm if there are any other legal requirements you would need. This is important because you may need to obtain an additional permit before you can transport poisons, chemicals, and other hazardous chemicals and materials.
Insurance Policies Needed for a Trucking Business
are essential insurance policies that you should have in place if you run a trucking business. The truth is, you would not be allowed to operate a trucking business in the United States, Canada, and most countries in the world if you did not have insurance coverage. certain insurance. Also, most people who want to do business with you can only feel comfortable if they know that you have a certain insurance policy for your business.
These are some of the basic insurance coverages that you should consider purchasing if you wish. to start your own trucking business in the United States of America or Canada;
- Commercial Auto Liability Insurance
- Physical damage coverage
- Motorized Truck Cargo Insurance (Complete)
- Bobtail Insurance
- Work accident insurance
- Non-own truck insurance
- General insurance
- Health / medical insurance
- Liability insurance
- Workers compensation
- Disability insurance for general expenses
- Business owner policy group insurance
Intellectual property protection for a trucking business
Most players in the trucking business don’t need IP protection. This is simply because trucking companies do not necessarily need intellectual property protection. The real reason that a trucking company can apply for intellectual property protection is to protect competitors or newbies from making use of or copying its logo or business documents, etc.
The bottom line is that business is straightforward and if you enter the industry, you have other things to resolve and intellectual property protection shouldn’t be one of them; except that you have a compelling reason why you want to apply for intellectual property protection.