Rough guess on what it cost for your O/O Authority

IRP, This is your base plate. depends on the value of the truck. On a mid to early 2000 model, plan on around $1800-2000 depending on the state.

Cargo Insurance, 7000-10000 depends on the company you get insurance from. That will also include your phy dam/liability.

NY HUT permit, $19
IFTA $30.50
MCS-150 $300
UCR $75
2290 $550
Graphic work $150-250. Really depends on how elaborate you make it.


Plus you need to get KYU, NM, OR, WY, and a couple other states in line (they're listed on the UCR and IRP websites too.)


Just the stuff I remember off the top of my head.

 

The IRP costs have nothing to do with the value of your truck. It is based upon the number of miles by state. The first year you pay for estimated miles in those states in which you plan on running. It is pro rated using a formula which averages what other carriers from your state run in those states. Most states will estimate that you will run more miles in your home state than in other states. Most seem to pay between about $1,500-2,200 for their base plates (IRP). Once you have 4 quarters running under your own authority, you can use actual miles run using your IFTA reports. Collision or comprehensive insurance rates are based upon the stated value of your equipment. Premiums usually run from 3 2/3-5% of the stated value.

You will need a minimum of $1 million auto liability and $100,000 cargo in order for most shippers and brokers to load you, although only $750,000 liability is required to obtain your authority. There is no longer a requirement for cargo insurance to haul general freight. Rates vary using a number of factors, such as your experience, where you base, where you plan on running, type of freight hauled and your credit rating. Most will pay between $6,000-12,000/year starting out. Insurance will be your biggest single expense to getting your authority. Although you can get your authority for the $300 filing fee, your insurance will need to be active prior to being able to use your authority. You should count on 3-6 weeks from the time you apply until you receive your authority. I believe that you can apply for your DOT number at the same time you apply for your MC number. There is no charge for the DOT number.

Before you can apply for your IRP or IFTA, you will need to have active insurance and authority. You will also need to show proof that your 2290 has been paid from the IRS. The cost is $550/year and it is pro rated from July. The tax is paid on each truck owned. You will need the serial number from the truck to pay the tax. Most states do not charge for IFTA. If you plan on running in Kentucky, New Mexico, New York you will need a HUT account in each of those states. These states usually contact new carriers or you can go to their website. Kentucky does not charge for their KYU number. New Mexico only charges about $5 per truck. If you have an account in those states, you will need to file quarterly reports in those states just as you do your IFTA. If you plan on running a lot of miles in Oregon, you may want to apply for their PUC account. I think that they still require a $2,000 cash bond or you can just buy a trip permit for each trip. I would not apply unless you plan on making a lot of trips into the state.

 

MCS-150 is the Motor carrier identification report

 

MN also ties your base plate to the value of your truck and the licensed weight as well. They have a nice little pro-rate chart to help you figure it all out in addition to the miles driven.

 

It should cost you around $1,000 a week not including your truck and trailer payment. For a cheap rig, figure about $350 a week. I'd say it would cost you about $1400 a week, not including fuel. That will depend on your truck, miles, prices, etc etc. For 2,500 miles, probably around $1,600? And this includes some money put away each week for maintenance.

So I think it would be around $3,000 a week to operate based on 2,500 miles with your own authority. If you get $2 a mile average, you can make $2,000 a week profit.

And then you have to pay IFTA tax and your other income-based taxes, of course.

And then you have to spend probably 30 hours a week looking for loads, doing your paperwork, figuring out your numbers, keeping your truck maintained, and then billing your customers. And then you have to wait 30-60 days for your money to come in.

So you really should have about $35,000 saved up just to operate before you get paid.

At least these are the numbers I came up with when trying to figure out how much it would cost me, and I'm not an O/O yet, but all this number crunching and investigating I have done has gotten me this far. Now I just need to take the jump when I have enough saved up.

 

In pa where i live and run my company to start its easy. you regirster with the state FREE. thats where you enter your company name address what you will be doing ie transportation. than they issue you your tax id number. at that point you enroll with ifta which is 10 dollars. now you need your truck, bob tail insures than your plate which is 150 a month no matter how many states you add. but adding to many and not running them will get you penlized on ifta after 2 years. now you are ready to lease on to a comany. now if you want your own authority to book your loads and what not which IMO is not worth it since you can lease a truck and trailer onto so many companies and avoid the extra cost but, you need you authority rights not sure of cost been a while. load insurance million min coverage trailer some states depending on your work requires a bond, than you need to get on the load boards or find contracts, a billing company to get paid figure how you plan to fuel your truck drug and acholo testing and a few hundred other tiny things to figure in.....Now either way you go i would recommend going with your LLC. this seperates the company from you and makes you a member so that if something happens like a bad wreck you can not be sued. they can so joe blow trucking but if they get everything from the company joe blows personal things are safe.

 

I don't think an LLC will protect you in this way, if you get into a bad wreck and you are determined to be negligent.

Here is what I came up with for myself, as far as numbers, to be an O/O and lease onto someone else.

Truck Down Payment - $2,500-$5,000 (3,750 avg)
Plates - $2,000
Sales Tax on truck - $1,400
HHUT - $550
Down Payment on Ins - $580
Trailer plates - $300
Starting Maint. Fund - $5,000
= $13,500 / 50 = $270 / week

So I need $13,500 to start out with, just to be safe.

Startups (above) - $270 / week
truck payment - $200/week
trailer fee - $100 / week
Maint/repair - $200 / week (not including the $5,000 starting fund)
phone/net/fax - $30/week
Insurance - $80/week (includes occupation accident ins @ $120/mo)
misc - $20/week

= $900 / week just to operate

I don't include food or my own salary in this - just business expenses.

So I figured out that I'd need, to be safe, $13,500 to start out with, and that's buying a truck about $25k - $30k.

And $900/week to operate, without even moving the truck, that's what it will cost. That is with the starting funds included, divided by 50 weeks, integrated into weekly costs.

So I'm looking at $45,000 a year just to operate, not including fuel. And this is not with my own authority.

If I wanted to have that, then I'd add another $150/week for insurance, and then another $150 / week for everything else to be compliant.

So $1,200 for own authority, that may be wrong, I really haven't looked into that too much, but it could be somewhere close to that. My earlier post said $1,400, that may be right as well. But remember you gotta have all that other money for fuel.

So you need to have $50,000 saved up to start your own authority if you don't have anything. And that will get you by, by the skin of your teeth, perhaps.

And a lot, lot, lot of work.

I would not want to have to deal with all of that BS of having your own authority, and still having to drive the truck. Having to have fuel money, having to bill your customers, what if they don't pay, and using all your home time just trying to stay afloat and compliant. LOL

Good luck on your venture, just please soak up all the info you can get your hands on.

 

That sounds like a property tax or ad valorem tax. Georgia has something similar, but it is only paid if you live in the state.