Selling truck company? No assets needed, for authority

[Chicubs22gs]

No sweat.
If I were starting out today I'd be doing exactly the same thing as you.
I obtained my authority before all the new entrant B/S was introduced and even that was a PIA.
We got inspected so often I had a driver ready to quit over it.
A couple of the diesel cops told us that they checked us just because of the new(ish) numbers.
It went on for about about a year.

Unless things have changed it cost the same to transfer as it does to obtain new authority ($300).
But you can be added as a partner for $14 (as I recall) then have the original owner dropped for another $14 if saving a couple hundred is worth the hassle to you and depending on your time frame.

To my understanding, if an inactive USDOT/MC number gets reactivated, it re-enters the New Entrant process and then will require another 6-12 months wait to get audited by the DOT. If that's not true, maybe I should look into re-activating instead of purchasing an active carrier?

My biggest concern is having to wait 6-9 months to get audited. My customers require 'New Entrants' to pass New Entrant Safety Audit until they can do business with you. Contrary to what one of the guys on this thread thinks, I'm not trying to scam anyone including the DOT or hide from safety measures, I wish I could be audited day 1.

I may not be the most savvy trucking expert, but my business background tells me it's unwise to start a trucking company without customers --- and the one I know will give me freight has specific carrier requirements i.e. the passed New Entrant Safety Audit which right now is my biggest hurdle as I don't want to wait potentially a year to sit and do nothing.

 

[Blood]

To my understanding, if an inactive USDOT/MC number gets reactivated, it re-enters the New Entrant process and then will require another 6-12 months wait to get audited by the DOT. If that's not true, maybe I should look into re-activating instead of purchasing an active carrier?

I'm not aware but anyone I know who would be willing to sell would have been inactive for at least 2 years.

 

[mndriver]

I had my new carrier audit within a month of getting my authority letter.

The new carrier clock started the day I got my DOT number, not my MC number. I got my DOT number in Sept '12 and MC in Aug 13. New carrier audit in Sept 13.

I had 1 customer refuse to work with me from being less than a year old. I've had one carrier tell me it's because I have less than 10 trucks. Never have I been turned down for age of equipment.

Buddy who was driving for a guy in 2015 was turned down by some of the very contacts that likely got him hired to a guy. Their explanation was his numbers were too new. "Need 6(12) months history".

There's reasons for needing time to pass. It's building experience and reputation.

And it's not that painful.

 

[Duck]

 

[Blood]

There's reasons for needing time to pass. It's building experience and reputation.

Which doesn't have jack schit to do with going through a new entrant audit.
Stay on topic.

 

[mndriver]

6 months of log sheets? I suppose you can just take those off the roll of toilet paper now. They wanted to see all of them.

Same with the Level 1 Inspections I got. He knew WHEN I had them before he even got to the office. First thing he did when he looked at my log sheets was to see if those Level 1's were properly recorded.

But all that happens overnight.

 

[Blood]

6 months of log sheets? I suppose you can just take those off the roll of toilet paper now. They wanted to see all of them.

So what?
If you've only been active for a week you give them the week and you've given them everything required for the 6 month period since it's everything you have.

Same with the Level 1 Inspections I got. He knew WHEN I had them before he even got to the office. First thing he did when he looked at my log sheets was to see if those Level 1's were properly recorded.

Refer to solution previously stated.

But all that happens overnight.

If you started business yesterday, then yeah.

 

[Chicubs22gs]

So someone help me understand the operations...

Let's say I buy an entire trucking company WITH a passed new entrant safety audit. How would that work? Would I just take over their USDOT/MC, passwords, bank accounts etc? Because from what I'm reading you can't transfer USDOT and although the MC is transferable, it has to go inactive and then reactivated in your companies name? I.e. My worries being the passed New Entrant Safety Audit would be void.

I reached out to a lawyer who told me there's two types of acquisition, Asset Acquistion (specific identified assets) and Stock Acquisition (including debts) but he didn't know specifics to the industry and if that would change how things work.

Any help in the right direction would help..

 

[OJ_DUB]

Whether your purchasing one or starting new it doenst matter as long as you don't cut corners on safety or regs. scores can be brought back up. but when they are steadily going down, it only a matter of time before they (dot) are knocking on your door. Good luck you guys!!! you can do it!!!

 

[Tazz]

I think your worrying about this new entrant thing way to much. Any number you buy is gonna have to be reactivated, or be a company on its way out of business (so maybe not the best reputation) both red flags to brokers to my understanding.

I would call the FMCSA and ask them what would be required if you bought a company. They can give you a definitive answer.
However I see nothing in the transfer regs about shutting down first

Regulations Section

 

[BRD]

Selling 28 year very old and very clean [6 digit] MC# 260132.
keep your DOT# or get a new one 1993 was 2 years prior to The DOT in 1995!!
accepting bids retiring!!