Start a trucking company in the U.S.
Starting a trucking company in the U.S. while residing in Canada involves several steps, and the timeline can vary depending on factors like preparation, regulatory approvals, and your familiarity with the process.
Here’s a general breakdown:
- Register Your Business: You’ll need to register your company as a business entity in the U.S. You can choose structures like LLC or Corporation.
- Obtain a USDOT Number and MC Authority: Apply for a USDOT Number and MC Authority from the Federal Motor Carrier Safety Administration (FMCSA). This is mandatory for operating commercial vehicles in interstate commerce.
- Secure an EIN (Employer Identification Number): Obtain an EIN from the IRS for tax purposes. This is required for U.S. business operations and banking.
- Establish a Business Bank Account: Open a U.S. business bank account. This requires your business registration documents, EIN, and proof of address in the U.S.
- Set Up BOC-3 Filing
- Obtain Insurance: You’ll need proof of insurance to activate your MC Authority.
- Register for the International Registration Plan (IRP) and International Fuel Tax Agreement (IFTA)
- Get CDL Drivers or Driver Licenses Transferred (if applicable): If you or your drivers are Canadian CDL holders, confirm whether you’ll need a U.S. CDL. In most cases, Canadian CDL holders can operate in the U.S. but might face restrictions on ownership and leasing.
- Lease or Purchase Equipment: If you don’t already own trucks, you’ll need to purchase or lease vehicles compliant with U.S. regulations.
- Comply with State-Specific and Federal Taxes: Register for Unified Carrier Registration (UCR), and any state-specific tax requirements.
- Apply for applicable visa, for example E2 Investor visa, that helps you work in the U.S.
At Mango Legal, we would be happy to assist you with the process. Contact us now.
Advantages of starting a trucking company in the U.S.
Efficient Operations & Better Rates
A U.S. presence streamlines logistics, reduces delays, and lowers fuel costs. Higher U.S. freight rates further enhance profitability, making operations more efficient and cost-effective.
Cross-Border Stability & Growth
Operating in both Canada and the USA diversifies risk across two economies. During economic downturns in one country, operations in the other can help maintain steady revenue.
Strengthened Client Relationships
Many U.S. businesses prefer working with domestic carriers, giving you an edge in securing contracts. Being based in the U.S. can help you establish closer ties with American shippers, brokers, and logistics providers.
