I'm looking into getting my own truck and trailer, I figure I'll do company for a while longer and learn as much as I can but, where should I start and what is all involved, I want to run my own authority and pull reefer.

 

Go back a few months and read posts/comments on this forum. You'll find a ton of interesting and relevant information.

 

Running your authority is expensive starting out. You will need money to run your business for at least 90 days, minimum. Your primary expense will be for fuel and taking care of your monthly living expenses. I would count on burning about 120 gallons of fuel per day plus what you use in the reefer. Of course, you will probably not be running your reefer all the time. Some loads will not require a reefer.

Getting your authority is the easy part. Making it work is the real challenge. You can get your authority for $300 if you do it yourself. You can now do everything on line through the Federal website. Insurance will be your biggest expense in getting your authority. You need to check around with insurance companies to get rates. It is much easier and less expensive if you have at least 2 years of otr experience in the type of equipment you will be running under your authority. I would expect rates of $6-12,000 proving you have a decent mvr, good credit and run in a fairly average area. Insurance rates will vary according to where you run and base your truck. You can get a bump in rates simply for living in a higher risk area.

In order to get your authority you will need to pay the $300 filing fee, have registered agents in every state in which you plan on operating and insurance. You will need a minimum of $1,000,000 in liability and $100,000 in cargo to do business with most shippers and brokers. You don't need this much insurance to get your authority, but most will require it before they will do business with you. This is pretty much average. Not all insurance companies will insure reefers. I would prepare for a surcharge that might be a bit stiff starting out. If you are a member of OOIDA, they will act as your registered agent at no charge.

There are a couple of other expenses you will incur starting out. You will need to have a base plate and pay a 2290. The 2290 is a heavy highway use tax imposed by the Federal government. It will need to be paid before you can get your base plates. Depending on where you live you can pay anywhere from $1,100 to over $2,500. A friend of mine just got a bill for over $2,300 in Virginia. I pay over $1,600 in Tennessee. Rates vary from one state to another.

If you plan on running in New Mexico you will need a $2 annual permit. Kentucky requires a KYU number but doesn't charge a fee. New York has a permit but I don't recall how much it costs. I think it is $68 every 2 years. If you want to do intrastate loads there are about 11 states you will need to get your intrastate authority. Texas and California are the two most expensive. I believe there are about 11 states which require intrastate authority if you pick up and deliver the same load in their state.

If you plan on running in Oregon you can either put up cash, a bond or buy a permit each time you enter the state. The cost is based upon the miles you run and your weight classification. If you don't run on a consistent basis I suggest you just buy a permit each time. Each permit is good for 10 days and there is an additional fee of $9 for using a credit card.

You will need to register with IFTA. There isn't a charge, but they will issue you a number and stickers for each truck.

One other charge is for UCR registration. This has taken the place of the Single State Registration in most states, although not all states participate. It is based upon the number of trucks and trailers you run. I believe the minimum is $39 for 1-3 pieces of equipment.

You will need to file fuel reports each quarter with IFTA, New Mexico and Kentucky. If you post a bond or put up a cash bond in Oregon, you will also need to file a quarterly report with them.

I think those are the highlights. I may have over looked something, but this will get you started. There are other expenses, such as load boards, maintenance, equipment payments (unless you pay cash), etc., in addition to your living expenses and regular monthly expenses which should be factored into the amount of money you will require until the cash starts coming in. If you are short of cash you may want to get set up with a good factor. They can be expensive, but it will keep your cash flow going until you have enough to run your business on your own. From the time you get your authority you need to allow for at least 90-120 days until your money starts to flow. It will likely come in sooner, but a little cushion won't hurt. I always like to plan for the worst case scenario in business.

 

GMAN - you are always so pleasant and helpful. You actually just gave me some food for thought, too! You are a sweetie.

 

I appreciate it, BlooMoose ops:

 

I really hope your a girl

 

:lol: :lol: :lol: :lol: :lol:

 

Yep, she's a girl. :wink:

 

Ok looks like you better have your ducks in a row for this but is it the same thing if I get my own truck and lease on with a company? Can I still make decent money that way? I was thinking( and tell me what you think) that me and a buddy go in on it and we spilt everything and he run 2 to 3 weeks and then I run 2 to 3 weeks and just keep the truck rolling at all times ( except maybe a day or 2 in those weeks to go over the truck and oil changes etc....)