New Company Setup
New Company Setup
The logistics and transportation industry is highly competitive and has great potential for professional truck drivers that understand the trade. If you are ready to start a trucking company, but you are not certain where to begin, Don’t Worry! We’ve put together the crucial points you need to start your own trucking business and help you succeed.
STEP 1 – Legally Establish your company
Now that you’ve made the decision to start your own trucking company you will need to decide which business structure best suits your needs. The applicable business types in Canada are:
- Sole Proprietorship
- Partnership
- Corporation
After you have determined the business type that best suits your needs, you will need to incorporate or register that business. You may be required to register with several different levels of government for a variety of different reasons and it is up to you to do your due diligence.
STEP 2 – Apply for permits, licenses, and industry law requirements
The trucking/transportation industry is a highly regulated industry. As your full-service consultant, we provide efficient and timely processing of all annual licensing, initial registrations and the renewal process. The staff at Global truck Permits knows exactly which documents must be filed and which permits and credentials (in cab permits, decals, plates, etc.,) are required to open your trucking company.
- Ontario CVOR or Provincial Safety Fitness Certificate (Depends which province you are based in)
- IFTA License Registration & Ordering IFTA Decals
- US DOT Registration
- Operating Authority – MC Number Registration
- MCS-150 – Biennial Update
- US Process Agent Filling (BOC-3)
- UCR (Unified Carrier Registration)
- EIN/FIN Number
- Carrier Code
- SCAC Code
- US HAZMAT Permits (if applicable)
- IFTA Registration
- ACE & ACI Manifests
- PARS & PAPS Labels
- US Customs Decals/Transponders & Registrations
- Pre-Pass, EZ Pass
- Account Set up & Permit Registration – New York, Kentucky, New Mexico, Oregon.
STEP 3 – Get insured
Transportation businesses need insurance to protect against losses (damages, injuries caused by commercial vehicles). Shop around for the best rates and refer to the FMCSA for business insurance filing requirements. Trucking insurance mostly covers:
- Commercial liability insurance: $750,000 in coverage. Some brokers require $1 million in coverage.
- Cargo insurance: $100,000 in coverage.
- Physical damage: This coverage protects in no-fault accidents.
- Non-trucking use: This is coverage for accidents if you’re hauling loads for another person or company.
STEP 4 – Buy or lease the right equipment:
The proper equipment can make the difference between success and failure. When selecting equipment for your trucking company, consider the following items:
- Can the vehicle accommodate the needs of your cargo? For instance, if you are transporting perishable items, you might consider a refrigerated compartment.
- Is buying or leasing equipment a better option for your new business?
STEP 5 – Apply for IRP Plates:
The program is best suited for commercial carriers driving through two or more IRP jurisdictions. What’s more, it issues one license plate and one cab card only for every vehicle in your fleet. Register your fleet for IRP in your home state or provincial jurisdiction.
STEP 6 – Stay in compliance:
The most important goal for any trucking company is to be and stay in compliance and be in good standing. Failure to do so can result not only in lost profit or penalties and having to park trucks, but in a worse case scenario can literally put you out of business and close your trucking company down. You MUST be up to date on time-sensitive filing requirements, these can range from IFTA’s quarterly tax returns to multi-year renewals for CDLs and staying compliant with your province/state’s corporate reporting requirements.
Post Audit Help
Post Audit Help
If any carrier fails an audit, the carrier be assigned a “Conditional” Safety Rating. Now that you have been assigned a Conditional or Unsatisfactory rating, you will most likely face: A degraded CSA score Expensive violation fines Required to develop and track a corrective action plan (CAP Plan) as part of the Safety Management Plan (SMP) Being denied loads Insurance rates increased Performing a periodic review or mock-audit of your safety files and documentation is a best practice to always being prepared for an audit by the Department of Transportation.
Our experts understand the SMP /CAP process and will work with you to respond timely and get it right the first time to avoid costly delays and further actions that could be taken against your company. On any schedule you determine, our experts can review your files, determine any shortcomings, provide forms and even assist in bringing the files up to full compliance.
Our goal is to help our carriers manage safety compliance, reduce risk, and control the costs involved. When the auditors come, we stand behind our work and alongside our clients to work together for the best possible outcomes.
Safety Rating Upgrade
Safety Rating Upgrade
FMCSA assigns a safety Rating after a Compliance Review and having a Conditional Safety Rating is often subject to increased insurance rates and denied load opportunities because of the less than Satisfactory rating. Although FMCSA offers a process for upgrading a Safety Rating but the process to upgrade is daunting and time consuming, often taking months and hours of work by the carrier.
We have successfully helped many clients through the upgrade process and have the expertise to make it as quick and as painless as possible. Don’t let a Conditional Safety Rating subject your trucks and drivers to additional inspections. Worse yet, don’t let a Conditional rating increase your expenses or be denied a business opportunity. Finally, don’t let the process of going through an upgrade scare you away from doing it! We are here to help!
MTO Voluntary Audits
MTO Voluntary Audits
You got “Conditional” Safety Rating? We can help you to get you from a “Conditional” Safety Rating to either a Satisfactory or Excellent Rating. We will identify safety gaps and create corrective action plan for you.
Don’t Forget, your Safety Rating is also selling point of your business, and which also impacts your insurance rates and your company reputation.
If your company requires a MTO audit, we are here to help. We can provide a voluntary audit that not only helps your company improve its rating, but also improve your company’s public image as well.
One-Day Transportation Compliance Review of your Company
If you need to improve your company’s efficiency or identify improvements or safety gaps and areas of concern, then we recommend a quick One-Day compliance review.
Some options for review can include any one or more of the following:
- Carrier profile – Inspection/ Violation records, Collision records & reporting.
- Driver Files – Hiring Applications or DQ Files, driver profiles, training records, Inspection/conviction records, collision records/ reports, etc.
- Vehicle files and Vehicle Inspection schedules
- Hours of service logs including electric logging
- Other records as necessary
Writing Safety Policies
Writing Safety Policies
It is particularly important to explain the full range of company policies and procedures, establishing their accuracy, effectiveness, and consistency but at the same time it is very important to be sure to focus on those policies that relate specifically to the charge.
It helps carriers to be able to demonstrate policies, procedures, and practices that indicate they’re in compliance with the wide range of laws and regulations that govern our industry. Doing so is not only simply a good business practice, but also known as “due diligence”.
Insurance & Transportation Risk Management
Insurance & Transportation Risk Management
Whether you’re a single owner-operator or responsible for a fleet of commercial vehicles, you’re concerned about more than traffic accidents. You want to manage all of the risks associated with your transportation business. The truck insurance market in Ontario is without question a unique one, in that it demands a specialized knowledge. In order for a trucking company to survive, it is crucial that it develop a positive rapport within this limited insurance marketplace.
If any carrier doesn’t pass safety requirements as outlined by insurance company, they won’t get any insurance. So, clearly better be prepared for insurance safety person visit and be prepared very well.
We make sure that we represented our client accurately to the insurance company, making sure all guidelines and practices have been met throughout the policy term, the renewal should go smoothly.
When you do this correctly not only do you get to stay in business, but you can also get a competitive advantage.
