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Old 10-31-2014, 06:36 AM
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Hello,

I am gathering as much information as i can pertaining to becoming an owner operator and i'm a newbie to this site, so handle me with kid gloves till i get use to the atmosphere of this forum. I have some questions if y'all don't mind! So, here goes..................................

1. If one chooses to do regional what type license plate would you need?
2. Where does IFTA come into play, only when you leave your state?
3. I understand keeping record of miles out of your home state but does it cost for the IFTA sticker?
4. If chose Intermodel would a different type of license plates be needed?
5. Briefly, what does it mean to run under another carriers authority? Is there a benefit to doing this? Does the carrier charge you for running under their authority?
6. If you run under another carriers authority are you truly an O/O or an O/O wannabee?
7. While running regional, do you pick the states you'll be running in and pay some type of tax for running in those particular states?

Sorry for all the questions but i have been researching this and some of the information is not making much sense to me. For anyone who helps me answer some of these questions i have a brand new CRISP $20.00 bill from my Monopoly game.

Thanks in advance,

Tee
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Old 11-02-2014, 01:04 PM
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Whether you run regional or nationally, you will need an apportioned plate. Right now you can still buy your base plate only with the states you plan on running. Beginning in January, major changes will happen with IRP (base plates). According to my state, you will no longer be able to exclude some states. If you have an apportioned plate, you will have all the states and Canadian provinces on your cab card. The difference is in how they calculate the charges. Currently, if you don't travel in a state, you are forced to pay estimated miles based upon what other carriers are running from your state. Beginning in the second year, you are penalized for not having actual miles in those states where you used estimated miles. It made base plates rather expensive. The fees were doubled if you didn't have miles. In January that all changes. There will no longer be penalties for not having miles in a particular state. The way I understand it, under the new program, IRP will operate similar to IFTA. We will only pay for miles we actually run in a state and will no longer use estimated miles. My state told me that my base plate charge should drop. I certainly hope so. I took a number of states off my cab card (base plate) this year and still paid a lot more than I felt I should. So, we will no longer need to worry about having to add states or stop and purchase a trip permit if we want to take a load to an area where we are not base plated. In theory, it sounds good. I think my base plate expires in February, so I will be among the first to find out. You run the same type of base plate, regardless of the type of trailer you pull. Vans, flats, step decks and intermodal all have the same type of base plate.

Under IFTA, you must file quarterly tax reports. You send in the miles and gallons for each state in which you ran. If you cross the state lines, you need an IFTA account. There should be no charge for IFTA stickers, but I have a friend in another state that has to pay for his stickers. Not all states participate in IFTA. If your state does not participate and you plan on traveling across state lines, you can get an account with a nearby state.

Leasing to a carrier means that you use the carriers motor carrier authority. If you run interstate you will need authority, either yours or someone else. The carrier who has the authority pays for auto liability and cargo insurance along with all compliance costs, such as belonging to a drug consortium, etc., If you run under your own authority, you pay for those costs yourself. Leasing to another carrier requires that you only haul their loads or those that they find for you. For this they charge a fee or deduct a percentage of the rate for their costs and services. Most charge 25-35%, depending on whether you have your own trailer.
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Old 11-02-2014, 01:24 PM
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Thank you Gman for this breakdown! This really helped.

Indiana plates are half the cost of Illinois plates and i don't live too far from the Indy border. So, if i purchase plates for just my state until January, i'd most likely save money until this law change?

Is leasing on to a carrier a better choice because the money difference in insurance?
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Old 11-02-2014, 01:43 PM
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In my state they charge by the quarter. So, even though we are in November, if I bought my base plates this month or next month, I would still pay for the entire quarter. Some states may still renew base plates on a calender year. My states has staggered the renewals for all carriers. It makes is easier on the state by not having everyone renew the last month or two of the year. You may check with Indiana to see what they tell you about getting your plates this month.

If you lease to a carrier, most require you to use their base plates and many of them use Illinois. The plate belongs to the carrier, even if you pay for it. I would prefer having my own base plate from my own state so that I would own it and be able to keep it if I decided to leave the carrier.

When you lease to a carrier, they pay the liability and cargo insurance. Some people find it more profitable to lease to another carrier rather than run their own authority. Insurance is one of the most expensive aspects of running your authority. Rates have gone up for the last 3 years. You could pay $10-12,000 for this type of insurance as a new authority, according to my insurance agent. I don't know that one way is best for everyone. I have a couple of friends who lease to other carriers and they are profitable and happy with the arrangement. I have other friends, along with myself, who are doing well running our own authority. Running your authority is expensive, but it affords a level of independence and flexibility you may not have running under another carrier. Most carriers have some level of assistance in finding loads and dispatching. There are a handful that allow you to find your own loads and run much as you would under your own authority. For instance, Landstar, CRST Malone, Universal Am Can and Mason Dixon all have an agent based system where you find your own loads. Others, such as Mercer have dispatchers to assist in finding loads for you. I think that leasing to a carrier prior to getting your own authority helps cushion the learning curve costs. But, if you have the drive, determination and resources to get your own authority, then the choice is a little different. Mistakes in this business can be very costly. Some start out on a shoestring and do well while others fail miserably. Most who start out on a shoestring don't do well.
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Old 11-02-2014, 03:50 PM
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That's interesting with the IRP. I never understood having to estimate miles on my MD plate for states I knew I wasn't going to run but wanted the option to run them. Like Utah for instance. The only states I didn't plate were CA,WA,OR.

CA. doesn't want my truck in their state and that was fine with me. (Still is)

I will call MD and see if I can obtain information on any changes for the upcoming year. I'm thinking about reinstating in the spring.

That method seems much more simple.
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Old 11-02-2014, 07:07 PM
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It sounds more simple and makes much more sense than the way we do it now. I really wish we didn't even have apportioned plates. I think we should be able to go to our local tag office and buy our base plate in the same manner we buy our car tags. It would save time and money. We could eliminate the IRP offices in every state. Of course, I feel the same way about IFTA. I would prefer to see states compete for our fuel dollars as they do with 4 wheelers. That would also save billions of dollars.

Last edited by GMAN; 11-02-2014 at 07:22 PM.
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Old 11-03-2014, 04:44 AM
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I, also, am leaning towards having my own base plates. It seems to make more sense especially if you decide to leave a carrier as you stated.

When you say they charge quarterly in your state is the total divided into four payments throughout the year? So, if your base plates are $3000.00 per year you divide that amount by 4?
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Old 11-03-2014, 04:46 AM
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Wow, i would think most carriers would avoid using Illinois seeing how expensive they are.
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Old 11-03-2014, 06:06 AM
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Illinois is very expensive, I only run Illinois and Iowa. My base plate last year was $1900 for Illinois and $985 for Iowa with about the same miles in each state.
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Old 11-03-2014, 12:00 PM
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This is where i get a bit confused! What if you decided to run Wisconsin, Michigan and Indiana along with Illinois and Iowa? Would the plates be close to 4 or 5k?

I thought you pay for the plates in the state your from, then IFTA kicks in when you travel to other states; i guess that is not so!

Scott, do you only run IL and IA because it's to expensive to run other states?
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