Trucking Business Licenses & Permits | Wexford Insurance
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 days ago
- 3 min read
Starting a trucking business in the United States can be a profitable venture—but it’s also highly regulated. From federal registrations to state-specific permits, there are several legal requirements you must meet before hitting the road.
Breakdown of the Essential Licenses and Permits
Whether you're launching a fleet or becoming an owner-operator, here’s a breakdown of the essential licenses and permits you’ll need to operate legally—and how Wexford Insurance can help protect your business.
Register Your Business Entity
Before applying for any permits, you must legally register your business. Most trucking companies choose to form an LLC or corporation to protect personal assets and simplify tax filing. You’ll also need an Employer Identification Number (EIN) from the IRS.
Get a Commercial Driver’s License (CDL)
All drivers operating commercial vehicles must hold a valid CDL. Depending on the type of cargo and vehicle, additional endorsements may be required (e.g., hazardous materials, tankers, or double/triple trailers). CDL requirements vary by state, so check with your local DMV.
Apply for a USDOT Number
Issued by the Federal Motor Carrier Safety Administration (FMCSA), a USDOT Number is mandatory for companies operating commercial vehicles in interstate commerce. It tracks safety records, inspections, and compliance reviews.
Obtain Operating Authority (MC Number)
If you plan to transport goods across state lines for hire, you’ll need an MC Number (Motor Carrier Authority). This defines the type of cargo you’re authorized to haul. You can apply for both USDOT and MC numbers through the FMCSA’s Unified Registration System.
5. File a BOC-3 Form
The BOC-3 designates a legal process agent in each state where you operate. This is required to activate your operating authority and must be filed through a third-party processing agent.
6. Secure International Registration Plan (IRP) Credentials
The IRP allows commercial vehicles to operate across multiple states and Canadian provinces with a single registration plate. Fees are based on mileage driven in each jurisdiction.
7. Get an International Fuel Tax Agreement (IFTA) License
The IFTA simplifies fuel tax reporting for interstate carriers. You’ll need to file quarterly fuel tax returns with your base state, which then distributes taxes to other states where you operate.
8. Pay the Heavy Vehicle Use Tax (HVUT)
If your truck weighs 55,000 pounds or more, you must file IRS Form 2290 and pay the HVUT annually.
9. Enroll in the FMCSA Drug & Alcohol Clearinghouse
All trucking companies must register with the FMCSA Clearinghouse, a database that tracks drug and alcohol violations. Employers must conduct pre-employment and annual queries for all CDL drivers.
10. Obtain Trucking Insurance
Insurance is not just a legal requirement—it’s essential for protecting your business. At a minimum, you’ll need:
Physical Damage Coverage
General Liability
Workers’ Compensation (if you have employees)
Wexford Insurance specializes in providing comprehensive trucking insurance for fleets, owner-operators, and new ventures. We help you find the right coverage to meet FMCSA requirements and protect your assets.
Conclusion
Starting a trucking business involves more than just buying a truck—it requires careful planning, legal compliance, and the right insurance coverage. By securing the proper licenses and permits, and partnering with Wexford Insurance, you can build a strong foundation for long-term success in the transportation industry. Connect now!
