Business Licenses and Permits

Companies that lease vehicles like motor carriers need to be aware of licensing requirements that may not seem necessary. Most motor carrier companies realize they will need to register for several types of licenses and permits, but even a financial company that just leases motor carriers can have the same licensing requirements.

Carriers that transport goods typically have to register for a U.S. DOT number, or at least register for a DOT number for a particular state if they only are an intrastate carrier. Companies that lease motor carriers will have to register for a number as well. The MCS-150 form issued but the U.S. DOT or a state equivalent requires leasing companies to register as a “vehicle registrant only,” meaning they aren’t the motor carrier company and will not have operating authority.

Surprisingly, the licensing requirements don’t end there. Leasing companies also have to register as a Unified Carrier using the Unified Carrier Registration program, and have to enroll in the IRP (International Registration Plan) for motor carriers.

Just because it appears that certain licenses and permits may not be needed, it should not be taken for granted. Make sure to check with different issuing authorities to ensure your company is compliant with licensing requirements.

Ryan Julson, Business License Research Analyst, Corporation Service Company

Tags: Corporation Service Company, leasing, Motor Carriers, vehicle registrant