Business licenses can be challenging to identify and manage
Licensing is a big part of business for companies of all types and sizes. And it can be complex, with potential obligations at the federal, state, and local level. Proper licensing helps you avoid fines, penalties, and other consequences – so it’s important to obtain the right information with the support of CT Corporation.
Frequently asked questions
Is my trucking business properly licensed?The federal government regulations impose license requirements on trucking industry related to safety and commerce. In addition, states and many localities require trucking companies and owner-operators to have a wide variety of registrations, licenses, and permits. These range from licensing requirements to drive certain types of rigs to permits and licenses for the rigs themselves. Determining what licenses and permits are required can be frustrating. CT Corporation's Business License Application Package will save you time and aggravation by pulling together forms, instructions and filing tips you need in order to do business.
How can CT help me comply with the Federal Motor Carrier Act?The Federal Motor Carrier Act (FMCA) requires a commercial carrier to appoint a service of process agent in its home state, each state where it’s registered to do business, and in each state it traverses during business operations. Your process agent is your legal representative in a state to accept service of process and other legal papers in a proceeding brought against your company. The appointment is made using Form BOC-3 (Designation of Agents for Service of Process). The form must specify all the states for which an agent designation is required. Keeping track of notifications from different agents can complicate your business operations, and increase the risk you will miss an important legal document. CT Corporation will file your Form BOC-3 on your behalf and act as your company’s BOC-3 blanket process agent in all necessary jurisdictions.
What is the best business structure for trucking companies?Whether you are the owner-operator of a single truck or operating a multi-truck company, you want to choose a business structure that protects your personal assets and allows you to meet your financial goals. The two most common choices, a corporation or an LLC (limited liability company), can protect your personal assets from business creditors, provided the business is organized and operated correctly. An LLC (limited liability company) is often the business structure of choice because of its flexibility and because there are fewer state-mandated recordkeeping requirements. With an LLC, business tax items (like income, losses, and deductions) pass through to the owners, who report the amounts on their individual tax returns. An LLC also can make an election to be taxed as an S corporation (provided certain requirements are met), which increases your tax planning options.
Why do trucking companies need an expert registered agent?A professional registered agent helps protect your business by ensuring you receive notice of lawsuits, employee wage garnishments, and important state notices, such as your annual report forms. You must have an in-state registered agent in your formation state and in every state where you are registered to do business. This state requirement is independent of the FMCA agent requirement. Your registered agent must be available during normal business hours at a fixed, street address. Using a professional registered agent service ensures your agent is available and that you don't need to worry about missing important documents while you are out on the road.
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