paperwork involved with getting started, what can i expect?

[geeshock]

Ok, I got some ideas as to the purchase price of a truck and trailer. Right now is probably the time to get one as the prices are extreamly low on used trucks out there. even some fleet maintained trucks are 19k and under. I even understand getting insurance to get the truck to my front door so I can park it isn't going to kill me but now comes the part that I would imagine kills most new O/O's or at least deters most would be O/O's from fileing thier own authority, the paperwork and leg work involved in actuality getting a truck ready for it's 1st run so you are 100% legit. I would like to know what kind of paperwork I need to file when the time comes so I'll be legal to drive that truck to pickup and deliver my 1st load. I know I could probably go through OOIDA or another entity that does this stuff to help truckers and might still go that route but beleave it would benefit myself to understand the paperwork trail myself, even if I do go through one of these independent fileing firms. thx.

[Bigmon]

It's actually easier than you think. You file for your Authority, get approval letter, have insurance file with DOT,get process agent, get plates, get UCR, get signed up with brokers or shippers and go. Even Pepe did it.

[geeshock]

Sounds prety straight foward, where do you file for your own authority?

What Kind of insurance we talking about.

How much of each do I need to have most brokers even consider me?

process agent? Might you clarify what this is?

UCR is another new term to me.

Haven't heard anything about IFTA or anything about any tax papers I know I'm goinna have to file.

I know my friend had to fill out and file a form about heavy road use tax and probably some others.

Permits is probably something I'd have to call state by state. I know I'll need an IFTA, probably a KYU to start. Not sure if I plan on doing New York, not even sure if they still have a seperate HUT permit anymore but I'm prety sure I can get most of these things at the first weigh station in the state or just call ahead of time.

[jagerbomber3.0]

I learned a ton from reading through the stuff on the FMCSA website this week and they have all of the authority stuff worked out to where you can do it in a very self explanatory maner on there. That is as far as your actual authority and motor carrier number goes. You will have to go other places for IFTA and your KYU number if you choose to ever run through Kentucky.You have to print out the KYU application and mail it in and their site says it takes 7-14 business days to get it through the system once they receive your application. Do that through the state of kentucky itself and there is no fee for getting your KYU number. I think you have to get a UCR and that can be done online.You will have to get your heavy highway use tax paid up and get your IFTA started up before you can get your plates if i am not mistaken. You have to get signed up with a BOC-3 and a drug testing group. If you join OOIDA they will get you set up with the BOC-3 for no charge if i remember correct and they can help you out on getting set up with the random drug tetsing stuff as well. You will also need to have a driver qualification file for yourself. i cant remember ALL that goes into this but I do know that you have to have an actuall employment application on your self and a ten year employment history on yourself just like when you work for a company, you will need a current drug test and DOT physical and some other things but those are some of the highlights that I have learned about. It all seemed REALLY overwhelming to me when i first started looking into the stuff but the further I have looked into it it is really fairly easy to do stuff and outside of getting the money for your permits and plates and all that stuff it seems like a pretty straightforward process and all of the appropriate state and federal websites have been full of some good information. i cant wait to get started on all of it this next year. Also, there are several usefull posters on this site that can answer any other questions you have pretty easily. G-Man gave me a basic run down a few months back and i took his info and used it to research everything and it was a great help. I hope I have given you a few of the things you need to know, anything i was wrong on or missed can surely be answered with ease on here.

[jagerbomber3.0]

Sounds prety straight foward, where do you file for your own authority?

What Kind of insurance we talking about.

How much of each do I need to have most brokers even consider me?

process agent? Might you clarify what this is?

UCR is another new term to me.

Haven't heard anything about IFTA or anything about any tax papers I know I'm goinna have to file.

I know my friend had to fill out and file a form about heavy road use tax and probably some others.

Permits is probably something I'd have to call state by state. I know I'll need an IFTA, probably a KYU to start. Not sure if I plan on doing New York, not even sure if they still have a seperate HUT permit anymore but I'm prety sure I can get most of these things at the first weigh station in the state or just call ahead of time.

For insurance $750,000 in liability to be legal but most brokers from what I understand will want a minimum of $1,000,000 in coverage and $100,000 of cargo coverage.
On your Heavy Highway Use Tax I am pretty sure you do that through a local IRS office and your IFTA you will register through your statei think.
UCR is your Universal Carrier Registration and you can also do that online.
For processing agents you have to have a BOC-3 filled out and set up,it is so you have a processing agent in every state you run in. OOIDA can get you set up with this with membership to them.

[geeshock]

Thank you, just like you I probably won't be looking into the paperwork till next year. Might get the truck b4 that since rates are so reasonable right now but right now, just getting things in order, research, researxh, and yeh, did I mention research? TYVM

[mike3fan]

Thank you, just like you I probably won't be looking into the paperwork till next year. Might get the truck b4 that since rates are so reasonable right now but right now, just getting things in order, research, researxh, and yeh, did I mention research? TYVM



Before you buy a truck get a quote from an insurance company on rates for your authority as they may have milage restrictions and a high price that would make going this route very difficult.

[Bigmon]

I was in a hurry and forgot about IFTA for state and 2290 Heavy tax to IRS.

IFTA can be done in person, mail or through a service. Same with 2290.

[geeshock]

a lot of these are pretty set fees. I don't know about anyone else but I don't have 1m to throw in escrow for my insurance so I guess I'd have to go through an insurance agency. Any recommendations?

[merrick4]

Call Carrier Service in Miami. 305-652-9990 extension 3. Doesn't matter where you live. They will take care of everything for you for a very low price. Been in business like 40 years or so. Family owned

[Justruckin]

Go here to get your authority

Registration & Assistance: USDOT Number/Operating Authority - Federal Motor Carrier Safety Administration (http://www.fmcsa.dot.gov/registration-licensing/online-registration/onlineregdescription.htm)

They take Visa and MasterCard. As soon as you pay, you will probably recieve a phone call from a process agent to handle the rest of your needs. And you will need to have your cargo and liability ins on file with the feds before you will be issued a DOT or MC number. No insurance, no number, and no refunds. Get your insurance first! The whole process takes roughly one to two months to complete.

You will also need a receipt for your 2290 payment to get your plate, at least it is like that in MI.

Expect to pay roughly $2000.00 for your tractor license plate if you plan to run the lower 48. But you can pick and choose which states you want to operate in and save a few bucks.

IFTA stickers are free, but you need to track all of your miles for every state you travel so you can pay those IFTA taxes quarterly and purchase next years plate. Keep track of your mileage! I found the easiest and cheapest way was a pad and pen. Much less likely to be lost like on a computer hard drive failure or USB thumb drive. Write it down. Make yourself up a trip sheet to track all miles and expenses, and use one for every trip. You will also need these for your safety audit, at least I did.

Insurance (cargo, collision, liability) will run you somewhere in the area of $8,000 to say $12,000 a year depending on your driving record and area you plan to work. You will need a minimum of 10 to 20% down, and expect to make payments for 9 months unless you can pay cash, which I would recommend.

Insurance, shop around for cargo, you will need $1,000,000 in liability and $100,000 cargo, any less and few will touch you. Call Progressive for your tractor and trailer insurance, they are very hard to beat. And Progressive does not handle cargo ins, like I said, shop around for cargo. And stay away from OOIDA for cargo insurance, as some outfits like LandStar will not load their freight on your trailer, and I believe Prime and a few other big guys will not honor OOIDA cargo ins. And they tend to charge a bit more for the same coverage you can get elsewhere for less money.

You will also need to join a drug testing consortium. Call around to your local clinics that handle the drug testing in your area. Stay away from outfits like Foley Services, they will rape you. My local clinic, Concentra, out of Detroit, put me in a pool for random drug/alcohol testing for free, I just had to pay for the pee test if I was selected.

Also, check with any local trucking associations in your state in regards to what you will need for your safety audit. The rules will be changing here very shortly, really do some research on this and utilize any trucking groups that have some clout in your state. Do not depend on these boards for your information when it comes to your first state audit.

That is all just off of the top of my head. Did you say how you are planning on getting your freight? Are you going to use direct shippers in your area, or are you going to pimp off the load boards like Get Loaded and TransCore? If you are pimping off of the boards, figure a dollar a mile or less depending on the area you are in, if there is any freight at all.

Are you going to Factor your paper? Do you have a trustworthy way to credit check the brokers and shippers you are going to be dealing with? You need to look at this very carefully. You must credit check EVERYONE!!!! I don't care if you use the same guy every week, credit check them every time you use them. Credit check, credit check, credit check!!!!! It is nothing for a brokerage to go t-ts up out here at the drop of a hat, and that includes direct shippers, do those credit checks as you cannot afford not to!

How do you plan on getting paid? Mail in your bills, using multiple brokers or rely on an outfit like CH Robinson for all of your freight and their QuickPay?

I wound up factoring along with my credit checks, through Apex Capital. Check them out, along with their fuel card, look at their FUEL CARD! Their fuel card will cover their factoring rates in many cases, and you will have cash in hand to keep the wheels rolling.

When I hung up my authority, my payments to Apex from the brokers were running on average 53 days. That means, that from when I sent my paperwork to Apex and it was sitting on their desk, it took an average of 53 days for them to see any money. I had a few that were out over 120 days, and these were from some big brokerage houses. And to let you know, most all of the brokers I used have closed their doors. I tended to stay with the little guys, they liked good service and understood trucking and its expenses. The big guys moved freight for the least amount of dollars possible. I hated the big guys and tried to stay away from them unless I had an in like I did with CH Robinson for my flat bed.

How will you pay for fuel? I would say you will need at least $1000 to $1500 a week for fuel, and if you have to wait an average of 53 days to be paid... Do the math, 53 days is near two months. And do not, do not rely on credit cards to pay for fuel! You will be under water so quick it will make your head spin! Get a fuel card from Apex or one of the big boys that you pay weekly with no interest. And I hope you have stellar credit, because you will need it. Credit is very very tight out here, trust me on that.

Good luck!

And on edit: Just to let you know, that my break even with all of the expenses with having my own authority were around $1.30 to $1.50 a mile give or take with the fuel spikes. And that was before I put a dime in my pocket, ate, showered, etc. And my equipment was paid for, tractor and two trailers. Some food for thought.

[geeshock]

thank you, this is exactly the feedback I was looking for. I wasn't expecting a cakewalk, otherwise everyone would be able to do it. This gives me something to sit down and make a plan of attack. This also explains why ppl say if you don't have a minnimum of 10k don't even think of trying this.

[Justruckin]

thank you, this is exactly the feedback I was looking for. I wasn't expecting a cakewalk, otherwise everyone would be able to do it. This gives me something to sit down and make a plan of attack. This also explains why ppl say if you don't have a minnimum of 10k don't even think of trying this.

gee,

Honestly, I would want at least say $30,000 in the bank after paying cash for a truck and trailer, the insurance, plates and all of the other little things. And even at that, I would still be very nervous about even attempting anything like this in this current economy, especially if you have a family and all of the responsibilities that come with that job.

Not saying it cannot be done, but looking at the big picture, along with the risk to reward factor, I would be hard pressed to do anything like you are thinking in our current state of affairs. I believe I can honestly say that I would probably wind up losing everything if I was to attempt what you are currently thinking.

Get an acount on one of the load boards, and call around to the brokers and see what the freight rates are in and out of your area. I think you will be shocked. That is the first thing I would do, drop forty bucks and do some research. Trust me, most of these brokers will have plenty of time to answer your questions.

Mike

[geeshock]

Yeh, I'm ready to make a move but the economy isn't, lol. I'm just getting a feal for it right now, doing the research and putting everything on paper. Just becuse I'm asking around doesn't meen I'm planning on doing it just this moment. I think I'd be insane to try it atm, ok, you have to be a little insane to do it period, lol. But I'd rather do it when the cards are a little more in my favor. I might sink the money into a truck right now since trucks are about as cheep as I've seen them but till the economy is better I don't see going for my athurity, base plates, etc. I do thank you for your up front candor and will keep this page bookmarked for reference so when the time is right, i can make the move as quick and painless as posable.

[Justruckin]

You would be better off finding a good quality commodity and futures broker and sending him 10 or 20 grand. Just stay at home and do dishes and laundry. It ain't that bad, and it pays the bills.

[heavyhaulerss]

You would be better off finding a good quality commodity and futures broker and sending him 10 or 20 grand. Just stay at home and do dishes and laundry. It ain't that bad, and it pays the bills.

there is no such thing as a good commodity/ futures broker. & sending him/her money would do nothing. someone has to place the trades. YOU!. I have been trading commodities for over 22 years. a broker does you absolutely no good unless you tell him what to do for you.

[heavyhaulerss]

there is no such thing as a good commodity/ futures broker. & sending him/her money would do nothing. someone has to place the trades. YOU!. I have been trading commodities for over 22 years. a broker does you absolutely no good unless you tell him what to do for you.

I want to clarify my post. I am not saying a broker is not a good person or not honest. it is just that his/her positon is not to make money for you. they are not like an investment adviser or other investment firms who make money when you make money. I like my broker very well, but I never listen to any advice he has. successful traders do not take the advice from brokers in the futures market. it is just a different relationship than with other fixed investments.

[GMAN]

I want to clarify my post. I am not saying a broker is not a good person or not honest. it is just that his/her positon is not to make money for you. they are not like an investment adviser or other investment firms who make money when you make money. I like my broker very well, but I never listen to any advice he has. successful traders do not take the advice from brokers in the futures market. it is just a different relationship than with other fixed investments.


I have never made money listening to the advice of a broker. In fact, I seem to lose money when I listen to them. I always did much better on my own.

[Justruckin]

I have never made money listening to the advice of a broker. In fact, I seem to lose money when I listen to them. I always did much better on my own.

Agree, I was a little flippant with my last comment.

[GMAN]

Most brokers only make money when you trade. If you buy or sell they make money so they encourage you to trade. Sometimes it is better to just hold what you have and ride it out. I just found out a stock that I sold some years ago is selling for about $190/share. I bought most of it at $19/share and sold at $28/share. It didn't pay dividends and sat at the same rate for about 2 years. Had I held on to the stock I would have a nice nest egg on the shares that I owned. Of course, it could have gone the other way.

[Justruckin]

Most brokers only make money when you trade. If you buy or sell they make money so they encourage you to trade. Sometimes it is better to just hold what you have and ride it out. I just found out a stock that I sold some years ago is selling for about $190/share. I bought most of it at $19/share and sold at $28/share. It didn't pay dividends and sat at the same rate for about 2 years. Had I held on to the stock I would have a nice nest egg on the shares that I owned. Of course, it could have gone the other way.

I know, I was in a bad spot many years ago with a divorce, Apple was trading at $7.00... I wound up in a truck after losing everything, you know the rest of the story.

But, times have changed, we made a few bucks on some cocoa and euro puts this am, hoping to make a few shekels on a silver short too. Looks like the markets are heading our way this morning.

[GMAN]

Some years ago I bought Apple on the advice of my then broker and promptly lost my shirt. I have been out of the market for some time. I have been giving some thought of jumping back in. The thing is that I tend to be an aggressive trader and get involved with investments which can be rather volatile, so I need to watch what is going on. It is difficult to do when you are on the road.

[Justruckin]

Some years ago I bought Apple on the advice of my then broker and promptly lost my shirt. I have been out of the market for some time. I have been giving some thought of jumping back in. The thing is that I tend to be an aggressive trader and get involved with investments which can be rather volatile, so I need to watch what is going on. It is difficult to do when you are on the road.

How did you lose on Apple, playing options?

The broker that I found actually keeps me rather level headed and has all of the numbers in real time right in front of him. I like to be in and out, make a profit and move on. The strategy is working and paying the bills. But I will say, it can get rather nerve racking with the dollar the way it is right now. It is so over sold, that when it bounces back Katy bar the door. This will be an exciting next few weeks.

[heavyhaulerss]

commodities/ futures trading is different than buying/selling stocks. when you involve options & strike prices, that is different from individual stock shares.

[GMAN]

How did you lose on Apple, playing options?

That was about 20 years or so ago. I broke one of my rules and when the stock started to take a dive, I started trying to cover my loses by buying. It was a dumb move that my wife occasional still reminds me of. I had not done that previously. I usually have a buy and sell point in mind when I buy a stock. I relied on the broker to do what I had been doing. Let us just say that it was a very expensive reminder of why I do my own research and trade decisions. I don't expect to ever rely on a broker to advise me on any trade decisions.

The broker that I found actually keeps me rather level headed and has all of the numbers in real time right in front of him. I like to be in and out, make a profit and move on. The strategy is working and paying the bills. But I will say, it can get rather nerve racking with the dollar the way it is right now. It is so over sold, that when it bounces back Katy bar the door. This will be an exciting next few weeks.


I remember one day that Texaco had an 11 point rise in one day. This was around the time of the Pennzoil lawsuit. Unfortunately, I was unable to take advantage of it. It went up and then down in a matter of a few hours. It is one of those things where you had to be sitting there keeping a constant eye on the market in order to take advantage of it.

I used to do a lot of options. The last time I was in the market I mostly bought the stocks. If it takes a dive then you have a better opportunity to recover your losses. I remember one stock that I traded about every week to 10 days. It would bottom out at about 12 3/4 and top out at around 16 3/4. It had this cycle for months until it finally broke the cycle and started a new one. I made a lot of money off of that stock.

I used to do well with some of the otc stocks. They tend to be more volatile, but the profit potential is there to make much more than with the blue chips. Not everyone has the mindset to trade this way. I always had a stop loss on every trade. I always knew where I would buy and sell.

[heavyhaulerss]

I remember one day that Texaco had an 11 point rise in one day. This was around the time of the Pennzoil lawsuit. Unfortunately, I was unable to take advantage of it. It went up and then down in a matter of a few hours. It is one of those things where you had to be sitting there keeping a constant eye on the market in order to take advantage of it.

I used to do a lot of options. The last time I was in the market I mostly bought the stocks. If it takes a dive then you have a better opportunity to recover your losses. I remember one stock that I traded about every week to 10 days. It would bottom out at about 12 3/4 and top out at around 16 3/4. It had this cycle for months until it finally broke the cycle and started a new one. I made a lot of money off of that stock.

I used to do well with some of the otc stocks. They tend to be more volatile, but the profit potential is there to make much more than with the blue chips. Not everyone has the mindset to trade this way. I always had a stop loss on every trade. I always knew where I would buy and sell.

I remember well my trading day's with the otc, bulletin board, & pink sheets & the adrenaline rush that went with it.

[GMAN]

Playing the market can be a rush. It can also be nerve racking if you don't have the right mindset. Some people simply can't stand the pressure of a volatile market. You need to understand that you can't always make money in the short term. Sometimes you need to cut your losses to make money in the long term.

[Justruckin]

Playing the market can be a rush. It can also be nerve racking if you don't have the right mindset. Some people simply can't stand the pressure of a volatile market. You need to understand that you can't always make money in the short term. Sometimes you need to cut your losses to make money in the long term.

I could tell you stories too, that is why I have that broker to keep me on an even keel and not go overboard. Been there and done that.

[merrick4]

These brokers make money that's for sure. A lot more than I make with these trucks. My wife is a compliance analyst with a broker/dealer.


Telling me the other day some broker made 7K in one day not too long ago. Of course he did something I guess he wasn't supposed to and they cut his commission in half. Still $3500 in one day is not too bad that's for sure.

[heavyhaulerss]

If brokers knew when to place trades, they would not be brokering. they would be successful traders. I pay almost $100.00 round trip in & out of a trade with a full commission broker on my commodities. the stocks I do on my own. my broker makes money by every order I place. so he likes when I do frequent orders. I like my full comm broker, cause he executes what I want, when I want, how I want. that is the purpose of a full brokerage firm, & the advantage.