For many people, a trucking company is one of the most important types of businesses in their area. With so many trucks and transportation need all around the nation, trucking companies have become integral to delivering products within certain geographical areas as well as providing services in other areas. A common misconception about a trucking company is that it only provides the transportation of goods, but this is not entirely true. A trucking company can also be one truck amongst thousands of trucks driven by several different drivers, but operated by a few individuals. In fact, one of the largest trucking companies in the world is also one of the smallest privately held corporations.
The Trucking Company is unique because they operate solely on an electronic log system that keeps track of all the information about each of their trucks. This type of system allows the company to determine at any given moment how many drivers are working on a particular route, what kind of driving habits each driver has developed, what fuel is used by each driver, and data on what vehicles each driver is currently driving. These data are constantly being logged and analyzed using sophisticated software programs designed by trucking company professionals. When a driver does make a poor judgment call and causes an accident, the information from the log will allow the trucking company to quickly analyze the data and determine what caused the mistake. This method is much more efficient than simply checking into each driver’s log one at a time and relying on other factors such as traffic violations or weather conditions to blame.
The trucking company employs hundreds if not thousands of drivers but also relies on computer software to keep track of the truckers and the way in which they have been driving. Truckers are monitored by computer software to ensure that they are maintaining a good driving record, are not driving aggressively or carelessly, and are not making ridiculous mistakes that put themselves or their cargo in danger. Each driver is also assigned an economic model, which gives the company an idea of what the overall costs will be for them to insure a particular type of vehicle. This helps the trucking business save money and therefore stay competitive.
A sole-proprietorship means that the trucking company is run and organized as its own business entity. It is entirely separate from the trucking company and is free to set its own rules and regulations. Each sole-proprietorship can have its own drivers, own trucks, own routes, own insurance policies, own maintenance policies, own tracking systems, own tracking or maintenance software programs, and own billing procedures. The business is free to choose what products or services it offers to customers, where it markets its products and services and who it chooses to do business with.
The business is required to submit its articles of incorporation, bylaws, operating procedures, capital, and payment of payroll taxes to the appropriate state government agencies. In addition, it must prepare and submit an annual business plan to the Secretary of State, reporting on its income and assets, expenses, revenues, and assets, liabilities, debts, and equity. Then it must obtain an authority from the registered agent to operate. This gives the trucking company the right to do business in the state and to transact business in the name of the new trucking company.
The trucking company is required to file with the Department of Motor Vehicles of its operating license and all its drivers’ license renewals. This also includes all medical reports for each driver. The company must also complete an annual audit to make sure that all the tax laws and regulations are being met. The trucking industry is not subjected to the Franchise Tax Act. Drivers do not need a written guarantee that they will be able to obtain a re-certification certificate after leaving the trucking business, unless the trucking company specifically requests it. Finally, trucking companies are not permitted to hire drivers who do not possess a valid driver’s license.