The moving industry has a lot to offer. Especially in California. And once you decide to start your own business and become a moving professional, it is time for you to start thinking about moving licenses and permits in California. Having a properly licensed business tells a lot about you, but even more importantly – it lets your clients know that they are doing business with a true professional. And no. It is not only about taxes. Having proper licenses and mandatory permits doesn’t have to cost you a fortune. Verified Movers is here to provide answers to any of your burning questions and/or doubts. So, if this topic is something that interests you – keep on reading and learn more!
Inform yourself
Before you make any moves, you should get well-informed. And for a good reason. Opening a business is a serious task that involves a lot of paperwork. And we mean – a lot of it. So, the best thing you can do is to get informed in advance. Make a list of things that need to be completed, and finish tasks one by one. We advise you to look for some legal assistance as well. Why? Well, a professional can make this whole process much easier for you. And that is exactly what you need. Find yourself a professional that knows everything there is about moving licenses and permits in California now, and you will thank yourself later. Believe us on that.
Also, besides doing research, it is a good idea to get some help from moving professionals as well. There are many benefits and qualities of reliable movers that will prove of great help to you during your move to California. Especially if you are doing a cross-country relocation. These types of relocations are notoriously complex and complicated. You will want to have professional movers working on the nuances and logistics of your move, while you can dedicate 100% of your attention to other tasks. Especially if you are planning on relocating your whole business. Having someone else worry about the move while you use your time to acquire moving licenses and permits in California will definitely pay out.
Budget – how much money you will need for moving licenses and permits in California?
This one depends on the type of business you are planning on starting, but the thing that matters the most at this point is that moving licenses and permits in California are worth your while. They really are. So, after you find a professional that can help and guide you through this process – it is time for you to actually get some of that help. Ask the questions that interest you the most. The questions such as – how much money you’ll need to obtain a moving license in CA?
One of the costs that you can anticipate is the cost of obtaining a business license in California. The cost can vary, depending on the city and/or county of your business. Another factor that plays a major role is the type of your business. The average cost range for obtaining a business license is anywhere from $30 to $500.
Another one of the moving licenses and permits in California you might need to get is vehicle registration. Moving vans are crucial to moving business, especially if they are long-distance and interstate ones. So, what you should do is register your vehicle with the California Department of Motor Vehicles (DMV). Usually, this process requires a one-time registration fee, but you shouldn’t just take our word for it. Be sure to thoroughly research everything you can. The cost will vary, depending on the number, size, and value of your vehicle(s). Also, there is an annual registration renewal fee to think about, so be sure to factor in that price as well.
Register your business
Before you even start thinking about obtaining moving licenses and permits in California, you will have to register your business. This process won’t last long and doesn’t involve a lot of work. It is quite simple actually, so don’t lose sleep over it. Of course, there will be some things that will occupy your attention, but you will be able to get through them quicker than you might think. And if you get stuck in deciding what type of business you want to register – your legal advisor should be able to help.
While the process of registering your business isn’t complicated on its own, there are various steps that you need to complete. Being mindful and attentive is a must when it comes to these steps. If you manage to incorrectly do or forget one task, there might be some serious delays or fees down the line. Here are the steps you need to complete:
- Step 1: Select a Business Structure
- Step 2: Choose Your Business Name
- Step 3: Register the Business
- Step 4: Obtain Your Federal Employer ID Number (FEIN)
- Step 5: Open Business Bank & Credit Accounts
- Step 6: Set Up an Accounting System
- Step 7: Obtain Other Licenses & Permits
- Step 8: Hire Employees (if applicable)
- Step 9: Obtain Business Insurance
- Step 10: Organize & Systemize
- Step 11: Branding & Marketing
- Step 12: Annual & Ongoing Requirements
You won’t be able to do business without FEIN
One of the most important moving licenses and permits in California you need to get is FEIN. Federal Employer ID Number (a.k.a. FEIN) is required by law and your business won’t be operational until you get this document. Simply said, FEIN will act like a Social Security Number for your company. As we have said, it is a must-have for Corporations and LLCs. On the other hand, if you are a DBA (do business as) type of business and you don’t have any employees, then this document is optional. Since you are planning to establish a moving company though, and the workforce is an integral part of every moving company, then you should definitely acquire your FEIN number.
Fortunately, acquiring Federal Employer ID Number is very easy and convenient nowadays. All you have to do is visit the IRS webpage and navigate to the FEIN application. There you will find out if you are eligible for this document or if you need to acquire any further documentation. If everything checks out, all you have to do is begin the application process. Throughout California, all moving businesses, from movers in San Diego to long distance moving companies San Francisco, have FEIN numbers. So, if you want to have a successful moving business, be sure to get yourself this document.
Having business insurance is a must
Out of all the moving licenses and permits in California you need to acquire, don’t forget about moving insurance. Having the right insurance coverage is essential for protecting your moving business, your employees, and your clients. Because moving entails handling priceless items and accidents can occur, insurance protection is an investment that must be made. There are more than a few reasons why you should have solid business insurance.
- Protect your company: Mishaps can occur while moving, and you want to make sure that you’re covered in case anything happens to the items being moved that can cause damage or loss. Insurance shields your company from potential liability lawsuits and pays for any losses that may be sustained during the move.
- Protect your workers: Moving requires physical effort and labor which can put your employees at risk of harm. With proper business insurance, your employees are safeguarded from any workplace accidents. Furthermore, they are provided with necessary medical care and reimbursement.
- Boost client confidence: Clients are more inclined to select a moving business with insurance. Knowing that their things are safeguarded during the relocation gives them peace of mind. Insurance protection might also promote trust among your clients which will improve the company’s reputation in turn.
The cost of business insurance doesn’t have to be through the roof
The price of insurance for moving companies varies according to a number of variables, such as the size of your company, the extent of coverage, and the kind of insurance you select. Fortunately, solid business insurance doesn’t have to be extremely pricy. What’s more, a decent policy can run as little as $300/year. A moving business may get many types of insurance protection, such as:
- General Liability Insurance: This coverage guards your company against lawsuits alleging personal injury, property damage, or physical harm.
- Commercial Auto Insurance: Moving trucks and other commercial vehicles are covered by this insurance in the event of collisions or other damage.
- Workers’ Compensation Insurance: This coverage will safeguard your staff in the event of accidents or illnesses at work.
Apply for the USDOT
USDOT stands for the United States Department of Transportation, and you will have to apply for it as soon as you register your moving company. So, make sure you do it on time. Why? You need to be registered with USDOT before you apply for moving licenses and permits in California. The next step or steps are:
- You should apply for MTR.
- Find the proper insurance carrier. There are many options to choose from, and if you are planning on hiring long distance movers in San Diego, for example, you will need a different insurance claim than someone looking to open a local moving company.
- MTR written exam – you, the co-owner of your business, or one of your employees must pass it.
- Livescan fingerprints.
And once you complete all these steps, you will be ready to apply for PUC and for obtaining moving licenses and permits in California.
Different types of moving businesses
You should decide what type of business you are going to open. There are many moving companies on the market, and all of them are quite different. And yours should be unique as well. There are many options before you, so make sure you choose yours wisely. You can offer your clients a variety of moving assistance options in California or nationwide, and it all depends on you.
Household relocations
You can open a business that specializes in household relocations. That means that you can help people move homes locally or long distance to or from California’s greater area. And if you decide to help people who are looking to move long distance, you will have to register your business as a long distance moving company California.
Business relocations
If you want to take your business to the next level, you can specialize in commercial relocations. Of course – local or long distance. But, if you decide to specialize in this field, you will have to obtain the right equipment and hire highly-trained and well-experienced personnel. Of course, you will have to hire some LA long distance movers or similar experts to help you carry it out.
Storage solutions
Another option you can choose is to establish a storage facility and rent it short or long term. So, consider this line of work while applying for moving licenses and permits in California. Nowadays, a big portion of long distance moving companies Sacramento, as well as others from the entire state, offer this service.
Additional moving services
You can help people move long distances to Alaska, Florida, or any other part of America. But, you can also help people move internationally. In that case, you will have to obtain some additional licenses and permits if you decide to open your business for international moves. But, you will need to hire moving experts that can handle this type of work. And you will need to find some of the best cross country moving companies California has to offer and offer them employment.
Another thing you can do is add some special services to your list. Services such as packing, unpacking, home staging, move-in and move-out cleaning, handyman services, etc. There is a variety of options for you to choose from, so make sure you pick the ones that fit you the best. Of course, you can upgrade your business over the course of time. However, keeping your options open at all times is a wise thing to do.
Once you’ve completed the process, you can focus on developing your business
In conclusion, after moving to California, it is crucial to get the required moving licenses and permits in California in order to ensure that you can conduct business legally there. To make sure you are following all the rules and regulations and avoid any legal concerns, it is crucial to investigate the specific requirements for your business or profession. We wish you the best of luck!