Commercial License plates

lasher66 · Jul 3, 2002

Hi,
I was just wondering if you guys have to have commercial plates on a lawn business trailer and the truck. I live in Ohio and it just bugs the **** out of me that I have to pay that much more for both trailer and truck. I can see having the plate on the trailer since that is the main business equipment, but I use my truck for personal use also. Do any of you guys not use them and all? And does anyone know how much trouble you can get into if you get caught? Just curious.

Thanks
Lasher66

PaulJ · Jul 3, 2002

In Nebraska all truck are lisencened either farm or commercial.
No choice.
I think there is only one type on trailer license. I do know that a personal trailer does not have to titledbut a ocmmercial one does.
I'm sure every state is different

David Haggerty · Jul 3, 2002

People started telling me about some of the consequences of not having commercial plates.

1. You have to have commercial plates to put your company's name on the truck.
2. You need commercial plates to insure the truck on a commercial policy (which I have)
3. To deduct the truck and it's operating costs as a business expense it needs commercial plates.
4. Commercial plates are tax deductable.

So it's not just the license bureau that this is concerned with. It's related to your insurance, the IRS and probably more.

I got the commercial plates.

Dave

LawnLad · Jul 3, 2002

Just as David explained... in order to depreciate your truck it needs to be in the company name which subsequently will require commercial plates.

As well - if you operate as a corporation and you use a personal vehicle for buisness (the truck registered in your name) and you're sued as a result of an accident - you may find some attorney who's going to argue that you're not really a corporation, since there appears to be no separation between yourself and your business. Hence you've "pierced the corporate veil" and exposed yourself personally to business liability.

It's both the legal and professional way to operate your business - get the commercial plates. It's the cost of doing business.

site · Jul 3, 2002

If you are crossing state lines you need apportioned plates- plates which register your vehicle in multiple states.
IN ANY STATE-If your GCVW is over 10,000lbs and you are on the highway passing a weigh station you have to stop and provide...
A health certificate
A fire extinguisher
Reflective triangles
A DOT number displayed as specified by the DOT on the side of your truck.
Your company name displayed on the side of your truck
A buckled seatbelt
They will also go over your truck with a fine toothed comb looking for exaust leaks, worn tires, worn suspention, worn brakes, trailer lights out, etc. They will issue tickets for EVERYTHING they find wrong. We once got 13 violations in one stop. THe next time we got 5. And, our trucks are prettty good compared to most landscapers.
Exceptions to the rule- Trucks over 10,000lbs GCVW that are not owned for the purpose of generating income for their owners can drive right by. LIke if you have a big trailer full of four wheelers and no signs on your truck.
Avoiding weigh stations is common, but dont blow by... then you'll really get in trouble.

scott's turf · Jul 3, 2002

If you are a sole prop. than I don't know what is the right thing. I am the business so I am not sure if that excludes me from this. I don't have commercial plates on my truck or trailer and I see very few around here that do.

lasher66 · Jul 4, 2002

I am a sole proprietor also. That is why I posted this question too, because I notice most guys that work by themselves dont have commercial plates. I asked the license bureau and they told me if you are using the trailer or vehicle to make any money out of, then it is commercial. So does this mean that if I cut 4 lawns on the side (as an example) , I have to go out and buy $130 commercial plates to do so. Sounds like the government is just wanting more money. I still depreciate my truck , but if I get audited hopefully they dont give me any probs.

Lasher66

SCL · Jul 4, 2002

You could just come to Illinois where they charge that for ALL trucks under 16K regardless of com. or not. License your single axle trailer for next to nothing, and get spanked for a trailer that will haul anything.

LawnLad · Jul 5, 2002

The law is in black and white. Often times you have to decide for yourself what you think you can or can not reasonably risk by not following law. I'm not advocating breaking the law - but at times we all drive 36 in a 35 mph zone.

Does the 12 year old kid mowing grass for neighbors fill out a schedule C every year for $1,000 in summer income? Do all restaurant servers report their cash tips?

Asking if you should buy $130 commercial plates for mowing four lawns is tough for us to answer - YES you should legalistically. Practically, that's another answer. Should you buy them at 10 lawns? How about 20? Is 30 enough? When you decide that shade of gray is getting to close to black for your own comfort - that's when you buy your commercial plates.

Brickman · Jul 6, 2002

"site"

I have blown a lot of ports pulling a stock trailer behind my pickup. And have never been pulled in. I think the guys at the port figure that I am probably local, and they don't have time for all the local guys to be at a commercial facility. That is all scale houses between here and RI.

One thing that I think is SOOOOOOOOOOOOO stupid, I forget which state, but one in the midwest, has a sign by their ports that states "all vehicles weighing over 6000 lbs must pull in" along with their other messages. Do they realize that if that sign were to be enforced that EVERY guy driving by with a 3/4 or larger pickup would be pulling in? Regardless of commercial or TOTALLY private. What a DUMB law. Needless to say I do not pull in.

RMDoyon · Jul 6, 2002

Just as David explained... in order to depreciate your truck it needs to be in the company name which subsequently will require commercial plates.

Not true.
A sole proprietor whose truck is in his/her own name and used for business can be depreciated just as any other piece of equipment.

Also, the IRS doesn't give a hoot how your truck is registered, only your State DMV.

Roger

site · Jul 6, 2002

The rules I mentioned above are nationwide. The government does not make it easy to follow these rules. I know after the incidents mentioned above I asked the state DOT to audit my trucks and help explain what to look for. The guy at the DOT explained that this was definately a BAD idea because all violations would be noted and trucks would be out of service until all repairs were made. He then suggested a class given every few months in NH called something like complying with DOT regulations. The class was kind of helpful- although not really geared to landscapers- more for long haul truckers and heavy commercial users.

Lanelle · Jul 6, 2002

Thank you site. You have pointed out the value of industry-specific education. http://www.lawnsite.com/showthread.php?s=&threadid=31399

J&JPROPERTY · Jul 8, 2002

quote:
2. You need commercial plates to insure the truck on a commercial policy (which I have)

I operate as a sole prop. business. We run 5 trucks, 2 of which are in my name, I've had commercial insurance policies on them from day 1 , both of them are leases and the bank said no problem with the commercial insurance or using it for business. On our trailers, we still run regular tags, not trying to be sneaky, just never thought about switching. I agree with Lawn Lad about everything black and white, however, the black and white rules change for each level of business, i.e. - sole prop, LLC, S-corp, c-Corp, etc. When in doubt, contact a good business attorney and make him your friend

LawnLad · Jul 8, 2002

Well - I stand corrected Roger. You're correct. I made my statement based on the fact that I transferred two trucks into the company when we incorporated - we depreciated them on the books, but I did not change them into the company name. Commercial tags and all - I just had them registered in my name. I got a quick verbal lashing from my attorney - instructing me that they should be in the company name for proper paperwork. But my accountant never caught it or inquired (hmmmmmm). And the IRS didn't come knockin. No longer an issue since the trucks have been sold. So from experience - you're correct. They can be in your name and the company can claim them for depreciation - but my understanding is that technically you're supposed to have them titled in the company name.

What happens if the IRS does audit you? Will this be a point of contention?

David Haggerty · Jul 9, 2002

You can do all sorts of foolish things that you're never made aware of until it's too late.
Insurance companies will let you pay premiums on the wrong type of policy. Maybe even pay off on a fender bender. Then you accidentally kill someone with that truck, their lawyers go to work, "you're not covered for commercial work with that vehicle" or "that vehicle is covered only for commercial use, and it was in private use at the time of the accident." They just step aside and let you take full brunt of the lawsuit. Insurance companies are adamant in their distinction between commercial and personal insurance policies. If I'm paying for a commercial policy, it's wearing commercial tags.

The IRS can be just as harsh. Your pickup truck you've built your business around, and is probably your biggest write off, comes back "disallowed" from an audit.
Not just this year but all previous years you've claimed it. The IRS has a mileage log audit set up for people who also use their business vehicle for personal use. Yeah, like who has one of those and claims a percentage of their trucks mileage as a deduction? It's a much bigger deduction to claim the cost of the vehicle on the depeciation schedule, plus deduct the fuel & repairs. BUT if I'm going to declare the vehicle 100% business for tax purposes, I'd want to show a receipt for commercial tags.

As a sole proprietor with a DBA after my name I have to struggle to be considered a legitimate business. If the IRS declares mowing a non profiting "hobby" I loose all my deductions.

My 5300# Dodge costs $95 for tags. All trailers in Ohio are commercial, and pay by weight also. Mine are $25. I consider this a small (additional) price to pay to to hopefully be looked at as a legal business.

Dave

thelawnguy · Jul 10, 2002

In Connecticut, pickup-type vehicles, as well as cars, can be registered "combination" for both business and private use. You pay by weight, its a little more expensive than commercial but you can drive on the parkways, park on the driveways and all kinds of stuff that would be restricted to passenger vehicles only.

All trailers are commercial charged by weight unless its a "camper" which also includes snowmobile trailers and some guys use camper plates on their landscape trailer but take it from experience all that is, is an excuse for Deputy Dawg to give you a hassle.

lasher66 · Jul 10, 2002

I wonder if you were to get pulled over by a cop for speeding or something during your time of work, if they know to look for commercial plates if they see you are out mowing . Just wondering

Lasher66

David Haggerty · Jul 10, 2002

Originally posted by lasher66
I wonder if you were to get pulled over by a cop for speeding or something during your time of work, if they know to look for commercial plates if they see you are out mowing . Just wondering

Lasher66

No, they won't look.

Because Ohio is a front plate state, you've been advertising to every cop in every neighborhood you've ever worked that you have non com plates on a truck you're working out of.
They don't have to look, they already know you. If you ever get ticketed for a moving traffic violation, ficticious registration is a given.

GreenQuest Lawn · Jul 10, 2002

Someone correct me on this if I am wrong as this is just what I have heard.

I think the first thing that is screwed up is when we go down to the Secretary of state to get or license plates, get the registration in a company name, there is nothing said about commercial plates. This is supposed to be a law in MI. So this I do not understand. Second the plates cost $400+ per year. The only penalty is $125 ticket if you get stopped. This is the same ticket you would get if you dont have a health card in the truck with you.

Now around here, and I have been looking, I have only seen commercial tags on large trucks. (semi,dump trucks ect.)

I attended a seminar where they had two DOT officers on hand and they were drilled with questions from the lawn care companies and they were unsure of over half of the questions. They said it would depend on the officer that pulled you over as to what you got cited for. :dizzy:

Commercial License plates

lasher66

PaulJ

David Haggerty

LawnLad

site

scott's turf

lasher66

SCL

LawnLad

Brickman

RMDoyon

site

Lanelle

J&JPROPERTY

LawnLad

David Haggerty

thelawnguy

lasher66

David Haggerty

GreenQuest Lawn

Top Contributors this Month

Recommended Communities