Apex TRUCKING COMPANY. Start Your Own TRUCKING COMPANY. America s Favorite Factor. Start Your Own

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2 Start Your Own Start Your Own Trucking Company...3 Getting Started...4 Licenses and Registrations...5 Insurance...7 Taxes...7 Business Expenses...8 Factoring / Cash Flow...8 Support...8 Fuel...9 Credit...9 Loads...10 Maintenance...10 Apex... A Good Place to Start!...11 Need help getting started? Call Apex today! Apex Capital Corp. All rights reserved. 2

3 Start Your Own There has never been a better time to start a trucking company. The trucking industry is one of the biggest and most lucrative businesses in the United States. Nearly 70% of all freight tonnage moved in the U.S. is transported on trucks. It takes three million heavy-duty class 8 trucks and over 3 million truck drivers to move 9.2 billion tons of freight annually. Without trucking companies and drivers, the economy would come to a standstill. According to the American Trucking Associations (ATA), there is a driver shortage in the U.S. with approximately 25,000 unfilled truck driving jobs and they project that the trucking industry will grow 7% annually over the next 5 years. The U.S. government projects that 330,000 new truck drivers will be needed by Apex Capital Corp. All rights reserved. Need help getting started? Call Apex today!

4 What is the FMCSA? Formerly a part of the Federal Highway Administration, the FMCSA was established to prevent commercial motor vehicle-related fatalities and injuries. The FMCSA contributes to ensuring safety in the trucking industry through enforcement of safety regulations. GETTING STARTED Starting your trucking company and getting motor carrier operating authority can be complicated and frustrating. Before getting started, you should understand the basics of starting a business, understand the basics of the trucking industry, and you should research what is necessary to get started. A good place to start Apex Capital can simplify the process of starting your trucking company. Its highly-experienced transportation specialists can save you time and help you get your trucking company started quickly. Apex gathers all the necessary information from you, registers your company as a limited liability company (LLC) in your home state, and completes and files the appropriate registration applications with the Internal Revenue Service (IRS) and the Federal Motor Carrier Safety Administration (FMCSA). Apex Capital is one of the few companies that forms your trucking company, applies for motor carrier authority (MC number) for you, and offers freight bill factoring to help you keep your business running smoothly Apex Capital Corp. All rights reserved. Need help getting started? Call Apex today!

5 LICENSES AND REGISTRATIONS New Entrant When a new MC Number is assigned, the carrier becomes a new entrant and will be monitored during an initial 18-month period (soon to be 12-month period). A new entrant must: Operate safely Maintain up-to-date records Conduct periodic inspections and perform maintenance on Commercial Motor Vehicles (CMVs) Pass the Safety Audit Commercial Driver s License (CDL) If you don t already have a CDL, you will need to get one. Although there are federal guidelines in place for obtaining a CDL, each state has its own set of application procedures and training regulations. To learn your state s procedures, contact your state s Department of Motor Vehicles (DMV) to get a copy of your state s CDL manual. Register as a Limited Liability Company (LLC) A limited liability company is a business entity that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. Formation documents must be filed with the Secretary of State in your home state. United States Department of Transportation (USDOT) Number Companies that operate commercial vehicles that haul cargo in interstate commerce must be registered with the Federal Motor Carrier Safety Association (FMCSA) and must have a USDOT Number. Required FMCSA Forms: MCS-150 Motor Carrier Identification Report (Application for USDOT number) Motor Carrier (MC) Operating Authority If you plan to operate as a for-hire carrier, transport passengers in interstate commerce, or transport federally-regulated commodities in interstate commerce you will need MC authority from the FMCSA. FMCSA motor carrier operating authority is often referred to as a MC number. Required FMCSA Form: OP Apex Capital Corp. All rights reserved. Need help getting started? Call Apex today!

6 Other Federal Requirements: Alcohol and Drug Testing Program Safety Audit within 12 Months Hours of Service Compliance Log Book or Electronic On Board Recorder Requirements FMCSA Commercial Motor Vehicle Marking Rules Preventative Maintenance and Inspection Procedures Maintenance of an Accident Register Biennial Updates of OP-1 (to be replaced by a MCSA-1 on 10/23/15) Annual Service of Process Agent Designation by BOC-3 Filing Liability Insurance (bodily injury/ property damage and/or Cargo Insurance) Designate Process Agents A process agent is a representative that can receive legal documents in proceedings that may be brought against your company. Having a process agent listed in all 50 states is known as blanket coverage. Operating authority will not be active unless a carrier designates a process agent in every state it operates in. Required FMCSA Form: BOC-3 Employee Identification Number (EIN) An EIN is a nine-digit number assigned to various business entities for tax filing and reporting purposes. Required Internal Revenue Service (IRS) Form: SS-4 Unified Carrier Registration (UCR) The UCR Agreement was established by federal law to replace the Single State Registration System (SSRS). The UCR Act consolidated numerous motor carrier databases maintained by the FMCSA into a single online system. Fees that are due under the Uniform Carrier Registration Plan are based on fleet size and must be renewed annually. The UCR registration fees collected provide funds for states to enforce motor carrier safety laws. Register Online at: International Registration Plan (IRP) The IRP is a registration reciprocity agreement among the United States, Washington D.C., and Canada providing for payment of fees based on the total distance operated in all jurisdictions. To operate in multiple states or Canadian provinces, motor carriers must register in their base state or province. To register your vehicle with IRP apportioned license plates, you must contact your base jurisdiction (state or province) for specific information and requirements. Register Online at: Apex Capital Corp. All rights reserved. Need help getting started? Call Apex today!

7 CSA Scores You should be aware of the FMCSA s Compliance, Safety, Accountability (CSA) program and do all you can to avoid poor CSA scores. The CSA program assigns safety scores to motor carriers in seven areas, each of which is known as a Behavior Analysis and Safety Improvement Category, or BASIC. Five of those scores are made available to the public. Poor CSA scores can prevent you from receiving a load from a shipper or broker. You could also lose your insurance coverage or be forced to pay very high insurance premiums because of poor CSA scores. Crash Indicator BASIC Driver Fitness BASIC Unsafe Driving BASIC Hours-of-Service (HOS) Compliance BASIC Vehicle Maintenance BASIC (Cargo-Related) BASIC-Inspection-Repair-Maintenance Controlled Substances/Alcohol BASIC Hazardous Materials (HM) Compliance BASIC INSURANCE The FMCSA must receive proof of liability and/or cargo insurance within 90 days of the filing of the Company s OP-1. Insurance documents must be submitted to the FMCSA by the home office of the insurance company issuing coverage. A good place to start Higginbotham & Associates, one of the largest independent insurance brokerage firms in the U.S., offers start-up trucking companies a quick and easy way to get competitive quotes on all of their insurance needs. Higginbotham s program is simple: competitive pricing from multiple insurance companies with one application and one agency partner. If you think you might be interested in the Higginbotham program, please contact Craig Habuck at , or send an to charbuck@higginbotham.net. TAXES There are various federal and state tax regulations for trucking companies that can be confusing. If you don t stay on top of your company s tax obligations, a state or the IRS can attach a lien to your accounts receivable and delay or stop payment from your customers. To make sure you stay on top of your income, employment, state use, and/or vehicle taxes, you should seek the advice of a reliable and experienced tax consultant. Learn more about applicable taxes at Employed/Trucking-Tax-Center. Learn more about FMCSA CSA BASIC at csa.fmcsa.dot.gov/about/basics.aspx 2014 Apex Capital Corp. All rights reserved. Need help getting started? Call Apex today!

8 Example of Business Expenses: Fixed Costs: Truck Lease Payment Trailer Cost Tolls and Scales Plates / FHUT Physical Damage Insurance Cargo Insurance Liability Insurance Variable Costs: Fuel Fuel Tax Maintenance / Repairs Reefer Fuel Outside Labor Communication Motel Expenses Office Expenses Supplies Misc. Expenses BUSINESS EXPENSES To be sure your business is turning a profit; you must know what it costs to run your business. Your business will have two types of costs; fixed and variable. A fixed cost stays the same each month, and a variable cost changes. You should develop a solid understanding of what your costs are and what you need to charge per driven mile in order to make a profit. You can then use that number in negotiations with your customers and in making decisions on whether to take a load or not. FACTORING / CASH FLOW As a start-up business, you may be unable to initially obtain a bank line of credit. As an alternative to bank financing, factoring companies can provide you with operating cash flow through the purchase of your freight bills. Freight bill factoring is an easy way for small to medium-sized trucking companies to manage their cash flow and keep their trucks on the road. Factoring freight invoices is similar to a shortterm loan, but it is not actually considered a loan. Freight factoring is money that is advanced on accounts receivable. Learn more about how factoring works at SUPPORT If you are a small carrier or owner operator, it is extremely important to arrange for accounting support. Having someone taking care of your accounting tasks and collections keeps you behind the wheel and focused on the road. A good place to start Apex Capital is the leading freight factoring company for the trucking industry. In addition to offering cash advances on accounts receivable, Apex Capital provides additional services to help truckers run their businesses more efficiently including 24/7 access to an exclusive account management portal that allows clients to manage their account online. The online system allows truckers to perform free credit checks, create and send invoices, store documents, run reports and much more. Start factoring your freight bills with Apex today! Apex Capital Corp. All rights reserved. Need help getting started? Call Apex today!

9 FUEL Approximately 40% of a trucking business s operating expense is fuel. Trucking companies commonly use fuel cards to control and manage fuel purchases and to benefit from the cash price at the pump and discounts offered by select truck stops. You should absolutely take advantage of this practice to reduce your fuel costs. The Apex Fuel Card Program has saved Apex clients over $50 million in fuel discounts since the program began. Apex Capital passes on 100% of the discounts from its fuel partners directly back to its clients, resulting in huge savings and benefits. A good place to start Apex Capital offers its clients huge discounts on fuel at most major truck stops including; Pilot, Flying J, TA, Petro, AMBEST, Sapp Bros., Speedway, Wilco-Hess, and Roady s. Apex clients save an average of cents per gallon. In fact, the fuel savings truckers can achieve by using Apex s Fuel Card Program can be more than the factoring fees paid. CREDIT Selecting your customers is a significant decision. Credit information on shippers and brokers is critical to receiving timely payment, if at all. It can take eight to ten paying loads to make up for non-payment of just one load. Subscriptions to credit services are available, but they can be costly, and interpretation of credit reports should be done by someone with years of experience. A good place to start Apex factoring clients benefit from readily available credit line information. Apex s experienced Credit department uses the latest reported credit information from the major credit reporting agencies and its own collections experience with thousands of brokers and shippers to determine recommended credit lines for its clients customers. Apex may also purchase credit insurance for specific brokers and shippers to offer additional protection Apex Capital Corp. All rights reserved. Need help getting started? Call Apex today!

10 LOADS A good load board can be vital to locating available freight ready to be hauled. Be sure to research the various load boards to find sites that are reliable, accurate, and fit both your needs and your budget. For best results and accurate credit information, you should consider using an independent source of credit information. A good place to start Apex factoring clients can run free credit checks 24 hours a day, seven days a week on brokers and shippers from their online account management portal. Apex pulls credit information from many sources to get the most accurate and up-to-date information. Apex also offers a free load board to our clients which features the same loads and a quicker refresh rate than the big guys. MAINTENANCE Establishing a system of preventive maintenance for compliant, safe, and efficient fleet operations, including a schedule for periodic maintenance, inspection, and recordkeeping, can make a huge difference in your bottom line. The system should be consistent with the manufacturer s recommendations, actual experience, and regulatory requirements. Proper maintenance of trucking equipment can save you thousands of dollars in repairs and help you avoid poor Compliance, Safety, Accountability (CSA) scores as well. Correct use of equipment and maintenance can add years to its life Apex Capital Corp. All rights reserved. Need help getting started? Call Apex today!

11 APEX A GOOD PLACE TO START! Starting your trucking company and getting operating authority can be complicated. Let Apex Capital simplify the process for you. With Apex s Startup Program, a highly-experienced transportation specialist will work with you to gather all the necessary information, assist you with entity formation in your home state, complete and file the appropriate registration applications, and send you a Record Book. Apex Capital is one of the few companies that forms your trucking company and applies for motor carrier authority (MC number) for you. Apex also offers freight bill factoring to help you keep your business running smoothly. Learn more about Apex s Startup Program. Once your company is set up, you will receive access to Apex s factoring services, so you can get cash fast and start hauling loads. When you factor with Apex, you have FREE access to all of our additional services. Account Management Portal 24/7 access to your online account management portal to run free credit checks, create and send invoices, store and access to all of your documents, and paperwork. Fuel Discounts Save approximately cents per gallon with the Apex Fuel Card. Apex returns 100% of the discounts to you and it is accepted at thousands of truck stops nationwide including: Ambest, Flying J, Petro, Pilot, Roady s, Sapp Bros, Speedway, TA and Wilco-Hess. Fuel Finder Access to the Apex Fuel Finder to find the best price on fuel along your route. Apex Mobile App Download the Apex mobile app to your smart phone to access your account on the go. Tire Program Apex-exclusive national pricing with Continental and General Tire that saves you an average of $450-$1,500 annually on Continental/General tires at over 950 tire dealers nationwide Apex Capital Corp. All rights reserved. Need help getting started? Call Apex today!

12 Call Apex at We are the smartest way to turn your freight bills into cash. We are a full service freight factor that specializes in small to medium sized trucking companies. No long-term contracts No monthly minimums No cancellation fees Recourse and non-recourse programs Faster funding with faxes and copies 24/7 online account management Self-funding available Professional collections Personal account executive Service Discounts Receive discounts on quality services at TA and Petro truck stops when you present your company s DOT. Prescription Discounts A free prescription discount card through HealthTrans that provides 10-85% savings on brand name and generic medications and supplies at more than 60,000 pharmacies. Hotel Discounts Discounts from the Wyndham Hotel Group that can be passed directly to drivers. Earn 15% off the Rate Of The Day a great driver retention tool! FedEx Savings With Apex s FedEx Priority Overnight Discount Program, you will save $10 per package. This adds up to $250 per year possibly more. With almost 20 years of experience, Apex Capital has helped thousands of trucking companies, just like yours, keep their businesses running successfully. We are the smartest way to finance your invoices and turn your freight bills into cash. Apex Capital is the leading full service freight factor that specializes in small to medium-sized trucking companies. Apex Capital offers low rates, no hidden fees, no cancellation fees, no longterm contracts, exceptional customer service and many other benefits designed to help you keep your trucks on the road Apex Capital Corp. All rights reserved. Need help getting started? Call Apex today!