Description

Incorporation

Corporation:

Is a business entity that is given many of the rights as an actual person. Corporations may be made up of a single person or a group of people, known as Sole Corporation or Aggregate Corporation, respectively.

Limited Liability Company:

Is a cross between a partnership and a corporation. The advantage of a Limited Liability Company is that most states require fewer procedures to be observed in an LLC compared to a corporation. The major benefits of incorporating your business are the limits it affords you against business liability as well as personal debt liability. In case of a lawsuit or judgment against your business, no one can seize your personal assets, your home, car, bank accounts, etc. Your exposure to loss is limited to the assets of the corporation. In the reserve case, if an individual has credit problems, the corporation’s assets can not be touched.

Fictitious Business Name or D.B.A:

Allows you to legally do business as a particular name at minimal cost, and without having to create an entirely new business entity. You can accept payments, advertise, and otherwise present yourself under that name. In fact, if you present your business under a name other than your proper legal name without proper notification, it may be considered fraud.

In the United States there are three major types of Corporations: CLOSE, C, and S.

Close Corp.:

Issue stock, but the amount of shareholders is greatly limited, usually to less than thirty. Given the small number of shareholders, normally all are involved in board – level decision making. Transfer and sale of stock is also tightly controlled.

C Corp.:

Are the most common type of corporation in the United States. They allow for theoretically unlimited amounts of stock to be issued, and usually have a smaller board of directors which makes decisions. C corporations pay taxes both at the corporate level, and at the personal level, as shareholders pay taxes on their dividends.

S Corp.

Are virtually identical to C corporations, save that they have a special tax status with the IRS. Instead of paying taxes at both levels, S corporations are required only to tax their dividends – the corporation itself does not need to pay taxes.

Authority

Common Carriers:

Provide for-hire truck transportation to the general public. Common carriers must file both liability (BI & PD) insurance and cargo insurance.

Contract Carriers:

Provide for-hire truck transportation to specific, individual shippers, based on contracts. Contract carriers must file only liability (BI & PD) insurance.

Brokers:

Arrange for the truck transportation of cargo belonging to others, for compensation, utilizing for – hire carriers to provide the actual truck transportation. Brokers must file either a surety bond or trust fund agreement.

Private Motor Carrier:

Means a person who provides transportation of property to passengers, by commercial motor vehicle, and is not a for-hire carrier.

Private Motor Carrier of Passengers (Business):

Means a private motor carrier engaged in the interstate transportation of passengers which is provided in the furtherance of a commercial enterprise and is not available to the public at large.

Private Motor Carrier of Passengers (non-business):

This means a private motor carrier involved in the interstate transportation of passengers that does not otherwise meet the definition of a private motor carrier of passengers (business).

US D.O.T# :

Companies that operate commercial vehicles transporting passengers or hauling cargo in interstate commerce must be registered with the FMCSA and must have a US DOT#. The US DOT # serves as a unique identifier when collecting and monitoring a company’s safety information acquired during audits, compliance reviews, crash investigations, and inspections.

Process Agent aka B.O.C 3:

Is a legal representative upon whom court papers may be served in any proceeding brought against a motor carrier, broker, or freight forwarder. Every motor carrier (of property or passengers) shall make a designation for each State in which it is authorized to operate and for each State traversed during such operations. Brokers are required to list process agents in each state in which they have an office and in which they write contracts.

Unified Carrier Registration:

Is the U. C. R. program. Created by federal legislation, it replaces the former system for registering the operators of vehicles engaged in interstate travel – the Single State Registration System (SSRS).

Standard Carrier Alpha Code:

The SCAC is a unique two to four letter code used to identify transportation companies. The National Motor Freight Association, Inc. (NMFTA) developed the SCAC identification codes in the late 1960s to facilitate computerization in the transportation industry. The SCAC has many applications in the transportation industry today. It is used to identify company names in electronic data interchange (EDI) transactions, intermodal interchange agreements (such as the UIIA), and computerized freight and passenger transportation payment systems (Cass Information Systems, Corp, Pay Solutions, Inc., etc.).

State Permits

International Registration Plan (I.R.P.):

Is the registration required for the vehicles over 26,000 pounds that cross state lines; also known as the Apportioned Plates and Prorate Account.

International Fuel Tax Agreement (IFTA):

Is an agreement between all 48 contiguous states, and 10 Canadian provinces. It enables participating jurisdictions to cooperate in the collection and administration of motor fuel taxes. An IFTA account is set up with the base state, which authorizes travel in all IFTA jurisdictions. Then a single quarterly report must be filed with the base state, reporting miles traveled and fuel purchased in each state. The base state is responsible for dispersing the funds to the other jurisdictions. You need an IFTA license if you travel in two or more member jurisdictions and if your vehicle either weighs more than 26,000 pounds or has three or more axles, regardless of weight. This does not include the fee charged by your based state. State fees will vary by state.

Kentucky Weight Distance # (K.Y.U):

Is required for any carrier over 59,999 pounds traveling in Kentucky.

New Mexico Weight Distance Tax ID Permit (N.M. W.DT):

Is required for any carrier over 26,000 pounds or greater traveling in New Mexico highways.

New York Highway Use Tax (H.U.T.):

Is required for vehicles over 18,000 pounds traveling on New York public highways.

OREGON Weight Distance Permits:

Is required for vehicles over 26,000 traveling in Oregon.

Temporary Permits

Trip Permit:

Is needed when a carrier has no apportioned license on the vehicle (tractor & trailer).

Fuel Permit:

Is needed when a carrier has no IFTA sticker.

Hazardous Permit:

Is needed when a carrier is carrying hazardous materials.

California:

All commercial vehicles regardless of weight are required to have a California Trip Permit unless they are hauling their own personal belongings.

Kansas Clearance Permit:

Needed for Private carriers with no authority to travel in Kansas and For-Hire carriers without Kansas listed on the SSR card.

Nevada:

All commercial vehicles 10,001 pounds or greater require a trip permit.

Tax ID# & 2290

An Employers Identification # (EIN) is also known as a Federal Tax Identification Number:

Is used to identify a business entity. Generally, businesses need an EIN and are required for tax reporting purposes.

The Heavy Vehicle Use Tax Return (IRS Form 2290):

This is used to calculate and pay the tax due on motor vehicles with a gross weight of 55,000 pounds or more that are designed to carry a load over public highways. When a new truck is first put on the highway, an initial 2290 must be filed by the end of the following month. A 2290 must also be filed if the taxable gross of a vehicle increases and the vehicle falls into a new category.

Due Dates

Annual Renewal	Expiration
IRP AppliIRP Application	?
Florida Corporation, DBA or LLC Annual Report	April 1st
IRS 2290 Form	July 1st
SCAC Code	July 1st
IFTA Account & DECAL	December 31st
NM & WDT	December 31st
UCR	December 31st

Reporting Quarters	Due
January - March	April 30
April - June	July 31
July - September	October 31
October - December	January 31

DUE DATE: for the quarterly tax return is the last day of the quarter for which the return is being filed. If the due date falls on a weekend or State holiday, the due date is the next business day(except for the KYU permit). A quarterly tax return MUST be filed even if the license does not operate or purchase fuel in any IFTA jurisdiction in any particular quarter.