Permits And Taxes to Establish Your Trucking Business

We all know licenses and permit requirements are endless in the trucking industry. Many of them deal with tax purpose, while for others are vital for the business operations across the state lines. As an owner operator, you need to hold on normal licenses as well as these additional permits for a secure establishment. However, if you fail to obtain these permits, your business world would surely face incur fine and delays, eventually reflecting your delivery deadlines. Obviously, due to improper credentials and paperwork, the delay takes place. But not any more! Keep reading to know what you got to do before you establish your business in trucking

Temporary Fuel and Trip Permits:

It is indeed a hassle work to deal with permits. However, to ease out your work and your workload, there are various kind of permits included in Temporary Permit. Check out the list of Temporary Permits below:

  • Trip Permits – While travelling from one state to another, your vehicle should be registered under IRP. Or you can gain Temporary Trip permits, which allows you to move around the city easily.
  • Fuel Permits – Likewise, if you’re moving to one state and your vehicle does not hold an IFTA decal and license, you’re liable to apply for a temporary fuel permit to enter the state.
  • Over Dimensional and Over Weight Permits – Sometimes, it is exceptional to go beyond the standard weight and dimension. However, you can ask for a temporary Over Dimensional and Over Weight Permit, authorizing you to enter the state according to vehicle configurations and weight and contains routing information, travel regulations/restrictions, and safety requirements.

Also, you can apply for annual permit to move your cargo beyond the standard size limits, to move along with feasibility.

  • Mileage Permits If you’re operating in Arizona, Kentucky or New York, your vehicle may require a mileage permit if at all you going for additional fuel and trip permits.

FMCSA Authority:

This authority is a necessity for all carriers operating as “For Hire” (for a fee or compensation) i.e. transportation for passengers and regulated commodities or arrange for transportation of such items in interstate commerce, required to have Interstate Operating Authority.

  • With FMCSA operating authority, the company needs to obtain multiple authorities to support its planned business operations and then the operating authority dictates the type of operation a company may run, the cargo it may carry and the geographical locations it can legally move.

Unified Carrier Registration:

Now that you’re into business, hiring truckers is almost a stereotype for any business so is Unified Carrier Registration. This registration is done in order to file an annual fee to the Federal Motor Carrier Safety Administration. However, do remember that the fee varies based on the nature of your load, trucking company, number of carriers in your trucking fleet and what kind of cargo is been hauled.

Form 2290:

Commonly known as 2290 tax, these taxes are mandatory to be filed by truckers on the basis of the weight they carry and the miles covered. However, IRS believes in going along with the technology i.e. e-filing of form 2290 HVUT and that implies to truck owners and operators if they’re holding more than 25 vehicles in hand. So go with authorized service provider to file your return and stay away from penalties.

IFTA Permits:

After your registration process is accomplished, next is almost their way. IFTA Permits! You would need them to conduct business across the state lines. However, the procedure starts by submitting the IFTA application at the state your business is located at, and in return you would receive IFTA permit provided the appropriate decals are issued. Now that you own a business, you need to make sure that every truck of yours have individual license as with one application, only one decal is issued.

IFTA filing is done in quarterly basis and you need to check on the IFTA Quarterly Tax Rate Schedule, to understand how much you owe taxes, where and when is the due date for your payments.

International Registration Plan:

You must have surely come across IRP, International Registration Plan? It is mandatory to get your fleets registered if you’re likely to operate in multiple states over the course of time. This plan is used by the base state where your business is established in order to distribute the tax payment to the states where your commercial vehicles have been operating over the year.

These permits are simply to make your hauling smooth and safe. Without them, you’re likely to be questioned while inspection and the matter would frizzle out of your hand, which is not so healthy for your new venture.

We would like to remind you that your IFTA return is due by this week, i.e. 31st October 2013. So all the IFTA filers come to and prepare your IFTA return online, to simply eliminate the errors. We’re more than happy to serve you with your filing concerns. Simply call +1 – 866 – 245- 3918 or shoot a mail to Hope your business flourish and serve you with more opportunities, filing your taxes on time.

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