Latest Trucking Insights to Propel Your Logistics Business

Trucking Insights

Important information for trucking companies and truck drivers

Important Safety Carrier Update for IRP (Apportioned License Plate) Registration!

Have You Changed the Company You Work For? Did you know that whenever you change the company you’re leased to, you must update the safety carrier listed on your IRP registration? Failure to do so could lead to the suspension of your IRP registration!

If the carrier you were leased to goes Out-of-Service, your IRP registration will be automatically suspended until you update the safety carrier information on your file.

Have you recently updated your email and address with the Secretary of State (IRP Section) on your IRP registration?

Ensuring that the Secretary of State (IRP Section) has your up-to-date home or business address and email is very important!

If the Secretary of State sends you a letter and it gets returned due to an incorrect address, your IRP account will be temporarily suspended until the address is updated!

Please note that the Illinois Secretary of State no longer mails IRP license plate renewal notices. Instead, these notices are now sent via email.

Therefore, it’s crucial that the Illinois Secretary of State (IRP Section) has a valid email address on file to ensure you receive your renewal notice!

Renewal notices are typically emailed at the beginning of December, so make sure your email address is updated before then!

Keep in mind, updating your address for your corporation does NOT automatically update your address on your IRP registration, even though both are managed by the Secretary of State!

IRP & IFTA Credentials - Digital Copies

IRP & IFTA Electronic Credential Copies
You are now permitted to carry your IRP cab card and IFTA license in electronic form. Paper copies of IRP cab cards and IFTA licenses are no longer required.

All U.S. States and Canadian Provinces Please be aware that your IRP registration may be suspended if certain conditions are not met. If the carrier you are leased to goes Out-of-Service, your IRP registration will be automatically suspended until you update the safety carrier information on your file. It is essential to keep your IRP details current to avoid disruptions in your operations!

IFTA Registration

IFTA Registration Every truck must have a valid IFTA (fuel taxes) registration and display the appropriate stickers on the sides of the truck.

IFTA registration is valid from January 1 through December 31, but it can be used until February 28 of the following year if the account has been renewed by December 31.

Your IRP registration may be suspended if certain conditions are not met!

If the carrier you were leased to goes Out-of-Service, your IRP registration will be automatically suspended until you update the safety carrier information on your file.

Corporation vs. LLC: Key Differences Explained

The first difference is the ownership of the entity. A corporation is owned by its shareholders, while an LLC is owned by its members.

The second major difference is how each entity is taxed. An LLC offers complete flexibility in choosing how it wants to be taxed, whereas a corporation is typically subject to double taxation—where the corporation’s income is taxed, and then shareholders are taxed on any dividends.

A corporation may not have the same tax flexibility. One of the major disadvantages of a corporate designation is the potential for double taxation. The corporation’s profit is taxed at the corporate level, and then any dividends distributed to shareholders are taxed again at the individual level. The third major difference between a corporation and an LLC is their legal structure.

Choosing Between a C Corporation and an S Corporation: What’s the Difference?

C Corporations can have an unlimited number of owners, while S Corporations are limited to a maximum of 100 shareholders. Owners of an S Corporation must be U.S. citizens or residents. Additionally, an S Corporation cannot be owned by another corporation, partnerships, or certain types of trusts. On the other hand, a C Corporation can have ownership by individuals, other corporations, and various entities, without such restrictions.

C Corporations can be owned by individuals, other businesses, and various entities, while S Corporations are limited to ownership by individuals only. C Corporations are subject to double taxation: first at the corporate level and again when profits are distributed to shareholders. In contrast, S Corporations are pass-through entities, meaning they are only taxed at the individual shareholder level after income is allocated. C Corporations offer a bit more flexibility when it comes to potential growth and expansion opportunities. However, both C Corporations and S Corporations provide limited liability protection to their owners.

Do you manage a corporation or an LLC? Have you recently updated your address?

If you answered “Yes” to both questions above, don’t forget to update your address on your corporation file with the Secretary of State. If you do not update it, you may miss important correspondence, including the annual letter the Secretary of State sends.

If you do not update it, you may miss the annual letter the Secretary of State sends to remind you to pay your corporation’s annual report. Failure to pay your corporation’s annual report on time will result in your corporation being marked as “Not In Good Standing,” and it will be dissolved within 6 months.

MC (Motor Carrier) Authority

MC (Motor Carrier) Authority – Obtain your MC (ICC) common carrier authority in just 3 weeks! Give us a call to find out how!

Motor Carriers – Required Biennial DOT Update Reminder!

Motor Carriers, did you know you MUST update your DOT information every 2 years? Whether you’ve changed your address, phone number, email, number of trucks,

trailers, drivers, or even if nothing has changed, you are still required to update your DOT registration every 2 years!

In accordance with FMCSA MCS-150 regulation 49 CFR Part §390.19, all motor carriers are required to update their MCS-150 information with the FMCSA every two years.

This update must be completed during the appropriate month—every even or odd year—based on your DOT number, even if none of your information has changed and regardless of when you last updated

Intra-State Operating Authority

Any person or entity engaged in for-hire transportation of property (excluding household goods) over public roads within the State of must obtain an Intrastate Authority!

Intrastate Equipment Leasing Contract

Please note that if you are a motor carrier with Intrastate authority, you must have an Illinois Commerce Commission equipment lease agreement for every truck leased to your company.

The filing fee for this equipment lease agreement, payable to the Illinois Commerce Commission, is $15 per truck.

UCR Compliance Registration

UCR Registration – UCR (2024) registration expired on December 31, 2024. UCR 2024 registration system is now open for payments!

Updating Address for BOC-3 (Process Agents)

Keep in mind that if you have updated your physical address on your DOT number, you must also update the address on your BOC-3 form. This change does not occur automatically!

KY Weight Distance Permit Requirements

KY Weight Distance Permits do not require renewal. You only need to add your vehicle once at the beginning and remove any vehicles that are no longer with the company.

NY Highway Use Tax (HUT) Stickers

NY HUT Stickers must be displayed on the outside of the truck, while NY permits should be kept inside the truck at all times. NY HUT stickers are renewed every 3 years.

NY permits will need to be renewed in 2024. You should receive a letter from the New York State Department of Taxation & Finance sometime in 2024 with instructions.

New Mexico weight distance tax permits are not required to be carried in the truck.

HAZMAT Compliance Registration

HAZMAT Registration for Carriers is due by June 30. If you are a hazmat carrier, your general hazmat registration expires on June 30, 2024, and must be renewed before that date.

Without an active hazmat registration, your company will be unable to transport any hazardous materials loads.

Highway Vehicle Use Tax (Form 2290)

Highway Use Taxes (Form 2290) are due by August 31. The reporting period for the Highway Use Taxes is from July 1 through June 30.

2290 HWY Use Tax Refund Process

Did you know you can claim a refund for Highway Use Tax (Form 2290) fees if a vehicle was sold, destroyed, or stolen during the tax period? Simply file a claim for refund with the supporting documents, and the IRS will refund the fees for the months the vehicle was not in use.

Title Transfer Procedures

If you have purchased a truck or trailer and have not yet transferred the title to your name, it is crucial to do so as soon as possible. Even if the title has been signed over to you, your name will not be officially listed on the title until you complete the transfer. Until then, the Secretary of State’s system will not have your name associated with that VIN number.

If you lose or destroy the title, you will need the previous owner to obtain a duplicate title and reassign it to you. This process will take additional time and may involve extra costs.

MVR Status Monitoring

The Federal Motor Carrier Safety Administration (FMCSA) requires an annual MVR (Motor Vehicle Record) check for CDL drivers, as mandated by regulation CFR 49 §391.25. Failure to comply during a DOT audit or compliance review can result in fines for your company. Be sure to check your drivers’ MVRs every year! Drivers can obtain an MVR from their local DMV or you can order one online.

Substance Abuse Testing Consortium

The Federal Motor Carrier Safety Administration (FMCSA) mandates that all CDL drivers operating vehicles with a gross weight of 26,000 pounds or more must register with an Alcohol and Drug Consortium. Additionally, drivers of buses with 16 or more passengers are also required to register with an Alcohol and Drug Consortium.

Driver Clearinghouse

Did you know that Department of Transportation (DOT)’s regulation 49CFR for Federal Motor Carrier Safety Administration (FMCSA), requires the implementation of random drug and alcohol testing rules for companies with multiple employees, as well as owner-operators?

The testing rules include procedures for testing, testing frequency, and substances tested. The drug and alcohol policy mandates that active drivers must participate in random screenings of at least 50% for drug testing and 10% for alcohol testing each calendar year. The Drug and Alcohol Clearinghouse is now fully operational and mandatory. Employers must conduct a query of the FMCSA Drug and Alcohol Clearinghouse when hiring drivers to ensure that the driver is not prohibited from performing safety-sensitive functions, including operating a CMV, due to a drug and alcohol program violation. If an employer becomes aware of a drug and alcohol program violation by an employee, they must report the violation in the Clearinghouse. Violations include positive drug or alcohol test results, refusal to take a test, or actual knowledge of a violation. Need assistance? Give us a call or email us today.

Business Tax Compliance in PA, NJ, and NE

PA, NJ & NE Corporate Business Taxes – You might receive a letter from the following states – Pennsylvania, New Jersey and Nebraska, asking you to fill out a questionnaire to determine whether or not you owe any corporate business or income taxes.

Although various factors are considered, the general rule is that if you merely passed through a state, you typically do not owe corporate or income taxes. However, if you made pickups or deliveries to or from the state, you are required to file a return and pay business income taxes.

If you receive a letter requesting you complete a questionnaire, be cautious about the information you provide. If you need assistance, feel free to reach out to us—we’re here to help!

In New Jersey, trucking companies have been required to pay fines on the spot when it was determined that corporation business taxes were owed and not paid. The annual corporation business tax is $1,000 plus a 10% cost of collection.