9+ Licenses and Permits You May Need to Open a Auto Transport Hauling Service

Embarking on the journey of opening an auto transport/hauling service can be a lucrative and fulfilling business venture for those with a passion for automobiles and logistics. However, navigating the complex world of licenses and permits required to legally operate such a business can be a daunting task for even the most seasoned entrepreneur. With a myriad of regulations and requirements to adhere to, it is crucial for aspiring auto transport service owners to be well-informed and prepared. In this article, we will explore 9+ essential licenses and permits that you may need to obtain in order to successfully launch and operate your auto transport/hauling service. By understanding and securing these necessary credentials, you will be one step closer to turning your dream of owning a thriving auto transport business into a reality.

image of author
Written by:
Newfoundr
Updated on:
April 17, 2023
image of Auto Transport & Hauling Service licenses
Our #1 recommend business formation partner:
Image of Zenbusiness logo
ZenBusiness
Image of full star review ratingImage of full star review ratingImage of full star review ratingImage of half a star review rating
Form your LLC Dream Business in minutes.

Get worry-free services and support to launch your business starting at $0 plus state fees.

Subscribe to our newsletter
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
More Helpful Content
Table of Contents:

Our List of 9+ Licenses and Permits You May Need to Open a Auto Transport Hauling Service:

Below is a list of possible Auto Transport & Hauling Service licenses and permits needed. Please note it will vary state by state, so please do extensive research before starting.

1. Commercial Driver's License (CDL).

A Commercial Driver's License (CDL) is a special license required to operate large, heavy vehicles such as tractor-trailers, buses, and other commercial vehicles. It is issued by the state's Department of Motor Vehicles (DMV) after passing specific tests and meeting certain requirements.To start an Auto Transport/Hauling Service, you will need a CDL to legally operate the large trucks and trailers used for transporting vehicles. Without a CDL, you will not be able to obtain the necessary permits and insurance to operate your business. Additionally, having a CDL demonstrates to potential clients that you are a qualified and experienced driver, which can increase their confidence in your ability to safely transport their vehicles.

Check if your state requires a Commercial Driver's License (CDL).

Skip the hassle of creating a business plan yourself.

With LivePlan you can easily write your business plan, secure funding, and get insights from experts.
Start your business plan →
Image of liveplan business formation

2. Motor Carrier Operating Authority (MC Number).

A Motor Carrier Operating Authority (MC Number) is a unique identifier issued by the Federal Motor Carrier Safety Administration (FMCSA) to companies that operate commercial vehicles transporting passengers or hauling cargo in interstate commerce. It is required for companies that operate as for-hire carriers, transporting goods or passengers across state lines.If you are planning to start an auto transport/hauling service, you will need an MC Number to legally operate your business. This number is required by the FMCSA to ensure that your company complies with federal safety regulations and has the necessary insurance coverage to protect your customers' vehicles during transport. Without an MC Number, you will not be able to legally operate your business and could face fines or other penalties.

Check if your state requires a Motor Carrier Operating Authority (MC Number).

Save time and lots of headaches...

Form your business in minutes and get up in running with one of the most trusted business formation services, ZenBusiness.
Form your business today →
Image of Zenbusiness business formation

3. Unified Carrier Registration (UCR).

Unified Carrier Registration (UCR) is a federal program that requires all motor carriers, brokers, and freight forwarders to register and pay an annual fee based on the size of their fleet. The UCR program was created to ensure that carriers operating in interstate commerce are properly registered and insured.If you want to start an Auto Transport/Hauling Service, you will need to register with the UCR program. This is because you will be operating in interstate commerce, which means you will be transporting vehicles across state lines. The UCR program is designed to ensure that carriers are properly registered and insured, which helps to protect the public and other carriers from unscrupulous operators.By registering with the UCR program, you will be able to legally operate your Auto Transport/Hauling Service and avoid any fines or penalties for operating without proper registration. Additionally, many shippers and brokers require carriers to be registered with the UCR program before they will work with them, so registering with the program can help you attract more business.

Check if your state requires a Unified Carrier Registration (UCR).

Simply all of your accounting and taxes in one place.

Quickbooks is built for entrepreneurs. They provide all of the tools you need to grow your business - track your income, expenses, receipts, contractors, and so much more.
Get Quickbooks today →
Image of Quickbooks software

4. International Registration Plan (IRP) Tag.

An International Registration Plan (IRP) tag is a registration plate that allows commercial vehicles to travel across state lines and into Canada and Mexico. It is a requirement for vehicles that are used for commercial purposes, such as auto transport or hauling services. The IRP tag simplifies the registration process by allowing businesses to register their vehicles in one state and operate them in multiple states without having to obtain separate registration for each state. Without an IRP tag, a commercial vehicle would need to obtain separate registration for each state it travels through, which can be time-consuming and costly. Therefore, having an IRP tag is essential for starting an auto transport or hauling service that operates across state lines.

Check if your state requires a International Registration Plan (IRP) Tag.

Save time and go with the pros.

Let the experts at Zenbusiness help you decide which permits and licenses you need to start your business.
Get your permits today →
Image of Zenbusiness business formation

5. International Fuel Tax Agreement (IFTA) License.

An International Fuel Tax Agreement (IFTA) license is required for companies that transport goods across state borders in the United States. It is a tax collection agreement between the lower 48 states of the US and the Canadian provinces, which simplifies the reporting of fuel taxes by interstate motor carriers. The IFTA license allows carriers to travel through multiple jurisdictions while reporting and paying fuel taxes to their base state. If you are planning to start an auto transport/hauling service, you will need an IFTA license to operate legally. This license ensures that you are compliant with state and federal fuel tax laws and regulations. Without an IFTA license, you may face hefty fines and penalties for non-compliance. Additionally, having an IFTA license can help you save money by avoiding paying multiple state fuel taxes and simplifying the reporting process.

Check if your state requires a International Fuel Tax Agreement (IFTA) License.

Build a beautiful, captivating brand...

Work with the experts at Tailor Brands to help you build your brand, logo, and everything else you need to get your business off the ground!
Get your logo today →
Image of Tailorbrands logo creator

6. Heavy Vehicle Use Tax (HVUT).

The Heavy Vehicle Use Tax (HVUT) is a federal tax imposed on heavy vehicles that weigh 55,000 pounds or more and operate on public highways in the United States. The tax is calculated based on the weight of the vehicle and the number of miles driven during the tax period.If you are starting an auto transport/hauling service, you may need to pay HVUT if your vehicles meet the weight requirement. This tax is required by the Internal Revenue Service (IRS) and failure to pay can result in penalties and fines. Additionally, having proof of payment of HVUT is required when registering your heavy vehicles with the Department of Motor Vehicles (DMV). Therefore, it is important to ensure that you have paid the HVUT before starting your auto transport/hauling service.

Check if your state requires a Heavy Vehicle Use Tax (HVUT).

Build a website that your customers will love...

With SquareSpace, you don't need to be a professional designer to build a remarkable website that'll attract customers and get them to share with their friends.
Build your website today→
Image of Squarespace website builder

7. Vehicle Inspection and Maintenance Records.

Vehicle Inspection and Maintenance Records are documents that record the maintenance and repairs performed on a vehicle, as well as any inspections it has undergone. These records are important for ensuring that a vehicle is in good condition and safe to operate, as well as for tracking its performance over time.If you are starting an Auto Transport/Hauling Service, you will need to have a fleet of vehicles that are reliable and well-maintained. In order to ensure that your vehicles are in good condition, you will need to keep detailed records of their maintenance and repairs. This will help you to identify any issues early on, so that you can address them before they become more serious and costly to fix.In addition, having comprehensive records of your vehicles' maintenance and inspections can help you to demonstrate to your clients that you take safety and reliability seriously. This can help to build trust and confidence in your services, which can be important for building a successful Auto Transport/Hauling Service.

Check if your state requires a Vehicle Inspection and Maintenance Records.

8. Cargo Insurance.

Cargo insurance is a type of insurance that provides coverage for loss or damage to goods or merchandise being transported from one location to another. It is designed to protect the owner of the cargo from financial loss in case of damage, theft or loss of the goods during transit.If you are starting an auto transport/hauling service, you will need cargo insurance to protect your business and your customers' vehicles. Auto transport involves moving vehicles from one location to another, and there is always a risk of damage or loss during transit. Cargo insurance will provide coverage for any damage to the vehicles being transported, ensuring that you and your customers are protected financially.Having cargo insurance is also often a requirement for obtaining contracts with shippers or brokers. Most shippers and brokers will require you to have cargo insurance before they will work with you, as it provides them with the assurance that their goods will be protected during transit.

Check if your state requires a Cargo Insurance.

9. Liability Insurance.

Liability insurance is a type of insurance that covers the costs of legal claims and lawsuits that arise from injuries, property damage, or other types of harm caused by your business. It is designed to protect your business from financial losses and to ensure that you can meet your legal obligations to compensate those who have been harmed.If you are starting an auto transport/hauling service, liability insurance is essential because it can protect you from the financial consequences of accidents, damage to property, and other incidents that may occur during the course of your business. Without liability insurance, you could be held personally liable for any damages or injuries that occur, which could be devastating to your finances and your business. Liability insurance can provide you with the peace of mind you need to focus on growing your business and providing excellent service to your customers.

Check if your state requires a Liability Insurance.

Subscribe to our newsletter
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
This post is for information only. You are responsible for reviewing and using this information appropriately. This content doesn’t contain and isn’t meant to provide legal, tax, or business advice. Requirements are updated frequently and you should make sure to do your own research and reach out to professional legal, tax and business advisers, as needed. We’re reader-supported. When you buy through links on our site, we may earn an affiliate commission.
Support

Frequently asked questions

Everything you need to know about the business licenses.

What is the best business formation license for a Auto Transport & Hauling Service?

The best business formation license for an Auto Transport & Hauling Service would likely be a Limited Liability Company (LLC) or a Corporation. Both of these formations provide limited liability protection, which can be crucial in a business with potential risks associated with transporting and hauling vehicles. However, the specific choice between an LLC and a Corporation would depend on your individual business needs, tax considerations, and personal preferences. It is recommended to consult with a business attorney or accountant to determine the best formation for your specific situation.

Is it required to have a general business license for a Auto Transport & Hauling Service?

Requirements for business licenses vary depending on the location and specific regulations of the city, county, and state where the Auto Transport & Hauling Service is operating. In many cases, a general business license may be required, along with additional permits or licenses related to transportation and hauling. It is essential to research and comply with the licensing requirements in the area where the business will be operating.
More Content

Related Business Licenses

Below are some more business ideas you can explore as options.
image of Drop Shipping Business licenses

Drop Shipping Business

Discover the essential licenses and permits required to open a drop shipping business. Learn how to navigate legal requirements and ensure a smooth launch for your e-commerce venture. Don't miss this comprehensive guide!
Read post
image of Fruit Stand licenses
Fruit Stand
8 min read

Fruit Stand

Discover the essential licenses and permits needed to open a successful fruit stand! Learn about health, zoning, and business regulations to ensure your fresh produce business thrives. Don't miss these crucial steps!
Read post
image of Etsy Store licenses
Etsy Store
8 min read

Etsy Store

Discover the essential licenses and permits required to open a successful Etsy store. Learn how to navigate legal requirements and ensure your handmade business thrives with our comprehensive guide. Don't miss out on these crucial steps to establish your online presence!
Read post
image of Bookkeeping Service licenses

Bookkeeping Service

Discover the essential licenses and permits required to launch a successful bookkeeping service. Learn how to navigate the legal landscape and ensure your business complies with industry regulations. Unlock the secrets to a thriving bookkeeping venture today!
Read post
image of Cheese Shop licenses
Cheese Shop
8 min read

Cheese Shop

Discover the essential licenses and permits needed to open a cheese shop, ensuring a smooth start to your gourmet business. Learn about health regulations, zoning laws, and more in this comprehensive guide.
Read post
image of Subscription Box Service licenses

Subscription Box Service

Discover the essential licenses and permits required to launch a successful subscription box service. Learn how to navigate legal requirements and ensure your business is fully compliant, paving the way for a thriving subscription box empire.
Read post

Newfoundr

Founder and CEO

We're newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.