Trying to get away from high insurance rates or simply moving company to another state? This will not be simple. Here’s what you need to know.

Relocating a trucking company to a new state involves more than just a change of address.

The trucking industry is heavily regulated, and moving operations across state lines requires meticulous planning and compliance with federal, state, and local regulations.

Below, we outline the critical considerations and steps trucking companies should take when relocating their business to a different state, including potential costs and detailed processes.

If any of this sounds complicated, contact CNS and our compliance and licensing teams can help you through the entire process!

Business Registration and State Licensing

Registering a New Business Entity

When relocating, your company may need to register as a new entity in the new state.

If your business operates as an LLC or corporation, you’ll likely need to file formation documents with the Secretary of State and obtain a new Employer Identification Number (EIN) if necessary.

Filing fees for registration typically range from $50 to $500, depending on the state.

How to Make the Change:

• Visit the new state’s Secretary of State website.
• Complete and submit the required formation documents.
• Pay the necessary filing fees and obtain your updated EIN if needed.

Foreign Qualification

If you plan to maintain operations in your current state while establishing a presence in the new one, you’ll need to register for a “foreign qualification.” This allows your company to operate legally in multiple states. Costs typically range from $100 to $300.

How to Make the Change:

• File an application for foreign qualification in the new state.
• Provide a Certificate of Good Standing from your current state.

State-Specific Licensing

Trucking companies must ensure compliance with state-specific business licenses and permits. Some states may require additional registrations, such as a state DOT number or intrastate operating authority, which can cost between $50 and $200.

How to Make the Change:

• Research the new state’s requirements for trucking companies.
• Apply for any necessary licenses through the appropriate state agency.

Updating Operating Authority

Federal Motor Carrier Safety Administration (FMCSA) Compliance

Your FMCSA operating authority (MC number) is tied to your business location. When you change states, you must update your operating authority details through the Unified Registration System (URS). FMCSA updates typically cost $14.

How to Make the Change:

• Log in to the FMCSA URS portal.
• Update your address and other required details.
• Pay the update fee and ensure your USDOT number reflects the new address.

International Registration Plan (IRP) Changes

The IRP governs commercial vehicle registration for operations across multiple states and Canadian provinces. When changing your base state, you must transfer your IRP registration to the new state’s jurisdiction. Transfer fees can range from $100 to $500 per vehicle.

How to Make the Change:

• Close your current IRP account and submit final mileage reports.
• Apply for a new IRP account in your new base state.
• Pay the necessary transfer fees.

International Fuel Tax Agreement (IFTA) Transfers

Relocation requires transferring your IFTA license to the new base state. Ensure you properly close your IFTA account in the current state and comply with all reporting requirements before applying in the new state. Costs include filing fees of $10 to $50 and possible bond requirements.

How to Make the Change:

• File a final quarterly fuel tax report in your current state.
• Apply for a new IFTA license in your new state.
• Display new decals on all applicable vehicles.

Insurance Requirements

Reviewing Coverage Needs

Insurance requirements vary by state. When relocating, review state-mandated minimum coverages, such as liability, cargo, and physical damage insurance. Policy adjustments may result in premium increases or decreases.

How to Make the Change:

• Contact your insurance provider to review new state requirements.
• Update your policy to reflect changes and request updated certificates of insurance.

Need help with this? Reach out to CNS Insurance to get a quick quote in your new state.

Filing Form BMC-91/91X

To maintain your FMCSA operating authority, you’ll need to update your BMC-91/91X filings, which confirm your compliance with federal liability insurance requirements.

How to Make the Change:

• Work with your insurer to file updated BMC-91/91X forms with the FMCSA.

Worker’s Compensation Insurance

Each state has unique regulations regarding worker’s compensation. Premium costs vary but are generally calculated based on payroll and industry classification.

How to Make the Change:

• Research worker’s compensation requirements in your new state.
• Obtain a new policy or transfer your existing one through your insurance provider.

Tax Implications

Corporate and Income Tax

Research the new state’s corporate tax structure and ensure compliance with its income tax laws. Costs depend on state tax rates, which vary significantly.

How to Make the Change:

• Consult a tax professional to understand new state obligations.
• File initial and ongoing tax documents with the new state’s revenue agency.

Sales and Use Tax

Review state-specific sales and use tax rules, particularly if you sell trucks or equipment as part of your operations.

How to Make the Change:

• Register for a sales tax account in the new state.
• Update accounting systems to reflect new tax rates.

Fuel and Highway Use Taxes

Each state has different tax rates and filing procedures for fuel and highway use taxes. Update your processes accordingly to avoid penalties.

How to Make the Change:

• Register with the new state’s Department of Revenue.
• Update fuel tax reporting systems and procedures.

Employment Law and HR Adjustments

Wage and Hour Laws

Ensure compliance with the new state’s minimum wage, overtime regulations, and other labor laws.

How to Make the Change:

• Update payroll systems to reflect new state laws.
• Train HR staff on state-specific labor regulations.

Unemployment Insurance

Register for unemployment insurance with the new state’s workforce agency. Costs are generally a percentage of employee wages.

How to Make the Change:

• Close your current state’s account.
• Register with the new state’s unemployment insurance agency.

Driver Qualification Files (DQF)

Review and update DQFs to ensure compliance with both federal and state-specific requirements for commercial drivers.

How to Make the Change:

• Audit existing DQFs to ensure they meet new state requirements.
• Update files with any additional state-mandated documentation.

Real Estate and Terminal Operations

Zoning Laws

Confirm the new property complies with local zoning ordinances for trucking operations, including parking, maintenance facilities, and dispatch centers.

How to Make the Change:

• Research zoning laws through local government offices.
• Apply for zoning variances if needed.

Lease Agreements

If leasing property, review the terms for transferability or termination. Negotiate new lease agreements as needed.

How to Make the Change:

• Work with a commercial real estate agent to find suitable properties.
• Negotiate terms that accommodate your trucking operations.

Utility and Infrastructure Needs

Coordinate the setup of utilities, internet, and other infrastructure critical for your business operations.

How to Make the Change:

• Contact utility providers well in advance.
• Schedule installations to align with your relocation timeline.

Environmental Regulations

Emissions Standards

Some states, like California, have stricter emissions standards for commercial vehicles. Ensure your fleet complies with these requirements.

How to Make the Change:

• Upgrade vehicles to meet stricter standards, if necessary.
• Obtain certifications for compliance from the state’s environmental agency.

Hazardous Materials (HAZMAT) Permits

If you transport hazardous materials, verify compliance with state-specific HAZMAT permitting and storage regulations.

How to Make the Change:

• Apply for new HAZMAT permits through the state’s Department of Transportation.
• Update your safety plans to reflect state-specific requirements.

Customer and Vendor Communication

Notify Key Stakeholders

Inform customers, vendors, and partners of your relocation well in advance to ensure a smooth transition.

How to Make the Change:

• Send formal announcements via email and mail.
• Update your address on contracts, invoices, and marketing materials.

Update Contact Information

Update your company’s address on invoices, contracts, marketing materials, and online listings.

How to Make the Change:

• Update your website, social media profiles, and online directories.
• Notify postal services and update your address with the FMCSA.

Operational Continuity Plan

Timeline Development

Create a detailed timeline for the relocation, including deadlines for compliance updates and move logistics.

How to Make the Change:

• Assign a relocation project manager to oversee the process.
• Break down tasks into manageable steps with clear deadlines.

Backup Plans

Prepare contingency plans to address potential disruptions, such as delays in licensing or operational setup.

How to Make the Change:

• Identify critical operations and ensure redundancy.
• Develop partnerships with local service providers for temporary support.

CNS is here to help you change headquarters across state lines!

Managing everything on your own is overwhelming and missing any little detail can lead to audits, fines and other negative consequences.

Reach out to CNS Compliance and Licensing teams where we have been helping clients’ for over 30 years.

We also carry many types of plates for:

• Passenger Cars
• Trucks
• Motorcycles and Mopeds
• Trailers and Permanent Trailers
• Bus
• School Bus
• Intransit
• Omni Bus
• SME
• IMP

If you have any questions, call (717)627.4334 or email at info@cnslicensing.com.