Need some more advice!

[Fresh]

I am in the process of purchasing a international box truck to mainly specialize in dedicated 1-2 hour runs once or twice a week. This truck does not have a sleeper and GVW is under 24,600. My question is what exactly would I need to get up and running. Do I need to get a DOT# since the gvw is under 24,600. Also does any one have some recommendations on a place to get load insurance. I am estimating the highest dollar amount of freight that would be hauled would be $200,000. I would also possibly be using this truck for short expediting runs in and around are area. Thanks for any help.

Ryan

 

[Broompilot]

Do you have a Customer Yet? Are you paying cash? Do you have Cash reserves?

Trucking is a very aggriviating industry to get started in. First GO TO THE DMV and ask them the same question. Find out before you pay for this truck or someone else does. (LIKE THE BANK) How much is it gona cost you to plate it and insure it.

Than once you do that figure out where are gona get the loads, FED EX or your uncle Billy. With out loads or customers you have no income zero. Just cause Uncle Billy says so, it better be in writing and the ink better have some funds behinid it to pay for the loads. (credit ratiing).

If this sounds dumb and you have accomplished what I wrote, than this is for others with the assumption that just buying the truck puts you in business.

Just today I went to the DMV (true story) guy in front of me who if I had a brick in my hand or a bat would have had a knot on his dumb head.

Idiot is arguing with the staff that since they the DMV offered him a plate renewal that he must have paid for the for all the necessary fees. Well guess what? IRS form 2290 was not paid last year, and when mister Policeman pulled him over and saw his plate was not registered guess what came to my mind as I am waiting my turn. YOU IDIOT its your responsibility to pay it NO THERE IS NO WARNING just a cancelation and guess what else???? YES your driving back the 70 miles to the IRS paying the last years 2290 and this years 2290 plus fees and penalties and than with the RECIEPT in hand you can now apply ALL OVER AGAIN for that registration and plate renewal.....

idiots and when I tried explaining it to him the DEER IN THE HEADLIGHTS really began to reflect stupid stupid stupid, but he thought the same of me, and will not even bother to remember my comments but they are facts. But hey is was 100% sure he is right and the DMV screwed this up not him no sir.....

 

[Broompilot]

Now straight trucks do not pay a 2290 form but this is just one example of what to expect. IRP, the list continues on and on.

 

[Fresh]

Let me explain my situation a little better and more detail. After looking a little closer I am not going to buy a truck. I have a relative who owns a company and has a truck that I can use when ever I would like. The truck is insured through his company for normal driving use. There are no DOT#'s on the truck and it does not have cargo insurance. Now with that being said I have started an LLC and and would like to use this truck for dedicated runs 1-2hours at most. My problem is do I need him to get DOT#'s on the truck and I would supply the truck insurance? Or would I be better off with him going out and getting all of the extra insurance and Dot#'s and me just reimbursing him monthly for the cost? (Sort of leasing the truck and insurance from him) As far as me being able to drive the truck I work for his company and I am listed as a driver under the insurance.

also with having loads to keep the truck busy I have some contacts and I strongly beleive that I can line some dedicated routes up rather quickly. My problems is I need to have all of these issues worked out before I approach my potential customers.

The only expenses that I will occur is insurance and gas to run this truck on dedicated routes. I have the freedom to take most of the runs myself to get things up and running and eventually I would incurr the expense of hiring a driver as more runs would be added.

Thanks again for everyones help.

 

[Moot]

Fresh, I really think you should consult with a transportion lawyer.

I believe even private carriers need a DOT number and liability coverage.

Would your friends insurance carrier cover you (you are not an employee of this company) in the event of an accident?

 

[Fresh]

I am an employee of his company. That is why I am insured on this truck. My issue is that I want to use this truck for my company to make weekly dedicated route runs. Does anyone know how or if I can legaly do this?

 

[greg334]

Fresh,
Here is my take on this, so I would also back this up with legal advice too as mentioned or consult with a DOT authority specialist. I have been told, which is open to interpretation that if I was contracted, I need a DOT # but if I was open to "for hire" hauling I needed an authority, two different things and my source is the USPS contracting services group.

I think you will need at least a dot # on the side of the truck plus the standard insurance coverage, $500K if I am not mistaken. Seeing you are new to this, the insurance may be more than you think so I would get at least a few quotes.

The DOT# is the first problem, the record keeping the responsibility for a number of requirements and the final liability falls on his shoulders exclusively regardless how much you use the truck. You have to be careful to ensure he understands this and being an employee also opens up a couple of other issues that a good lawyer can discuss with you and him directly and bluntly.

With that said, I would be careful on how you plan on doing this, seeing you are reaching into subleasing world with the equipment and you have to have contracts setup to CYA with liabilities and insurance. The LLC structure may not be the right thing to do and may not offer you a single bit of liability protection under the situation in your state.

Remember that the insurance company will have the final say so on this and it is not your responsibility to insure the truck, but the owner's.

 

[Crazynuff]

Best advice - give this relative the business with you taking a percentage . If your company accepts the loads you are your own employer and need an employee file for yourself . That means inquiries to past employers , copies of long form DOT physical , pre-employment drug screen , copy of MVR ,participation in a random drug pool , and much more . Since your company hauls the freight your company needs the authority . Companies that lease or rent trucks are supposed to show their name and MC number on the truck , often with magnetic signs . If their is damage would the customer file a claim with your relative's insurance company ? Dont try to avoid liability with an LLC . If you are found personally negligent they can go after your personal assets . If you are stopped and asked to produce bills of lading and truck registration you're in trouble . Renting the truck ? O.K. , show the rental agreement . I haven't even begun to touch on potential problems you're facing .