Hotshot trucking has gained popularity in recent years as a flexible and lucrative option for independent truck drivers. However, before you can start your hotshot trucking business, there are several authority costs and requirements that you need to be aware of. In this article, we will discuss the essential documents and permits you need to obtain, including the BOC-3, UCR, IFTA, and IRP Plates.
BOC-3 Filing
The first requirement for hotshot trucking is the BOC-3 filing. BOC-3 stands for “Blanket of Coverage” and is a filing with the Federal Motor Carrier Safety Administration (FMCSA). This filing designates a process agent in each state where you will be operating your hotshot business. The process agent is responsible for receiving legal documents on your behalf.
BOC-3 filing ensures that there is a legal representative available to receive legal papers, such as lawsuits or other legal actions, in case they are filed against your hotshot trucking business. The cost of BOC-3 filing typically ranges from $50 to $300, depending on the service provider you choose.
Unified Carrier Registration (UCR)
The next requirement for hotshot trucking is the Unified Carrier Registration (UCR). UCR is a federally mandated program that requires all motor carriers, including hotshot truckers, to register and pay an annual fee based on the size of their fleet.
The UCR fee is determined by the number of commercial motor vehicles (CMVs) you operate and the states in which you operate. The fee ranges from $69 to $187.50 per year for carriers with one to 20 CMVs. It’s important to note that the UCR registration must be renewed annually.
International Fuel Tax Agreement (IFTA)
The International Fuel Tax Agreement (IFTA) is another crucial requirement for hotshot trucking. IFTA is an agreement among the lower 48 states of the United States and the Canadian provinces, which simplifies the reporting and payment of fuel taxes by interstate motor carriers.
Under IFTA, hotshot truckers are required to keep track of the fuel consumed and the miles traveled in each participating jurisdiction. They must then file quarterly fuel tax reports and make payments based on the fuel consumed in each jurisdiction.
The IFTA registration fee varies from state to state, typically ranging from $10 to $50. Additionally, hotshot truckers need to maintain detailed records of their fuel purchases, including receipts and mileage logs, to comply with IFTA regulations.
International Registration Plan (IRP) Plates
Lastly, hotshot truckers need to obtain International Registration Plan (IRP) plates. IRP is a registration reciprocity agreement among the 48 contiguous states, the District of Columbia, and ten Canadian provinces. It allows hotshot truckers to register their vehicles for interstate travel with a single license plate.
The cost of IRP plates depends on the weight of the vehicle and the states in which it will be operated. The fee is calculated based on the vehicle’s gross weight and the number of jurisdictions it will travel through. The IRP plates must be renewed annually, and the cost can range from a few hundred dollars to over a thousand dollars.
Conclusion
Starting a hotshot trucking business requires obtaining several authorities and permits. The BOC-3 filing ensures that you have a designated process agent to receive legal documents, while the UCR registration and IFTA compliance are essential for maintaining legal and financial compliance with fuel taxes and fleet registration.
Additionally, the IRP plates allow hotshot truckers to operate their vehicles across multiple jurisdictions with a single license plate. While the costs associated with these authorities and permits can vary, it is crucial to budget for these expenses to ensure a smooth and legal operation of your hotshot trucking business.
Remember to consult with the respective regulatory agencies and seek professional advice to ensure you are meeting all the necessary requirements and staying compliant with the regulations.