Plain-English trucking business terms

1099-NEC

1099-NEC is an IRS form used to report nonemployee compensation paid to independent contractors.

BOC-3

BOC-3 is the FMCSA filing that designates a "process agent" in every state you operate in — someone who can legally receive court papers on behalf of your trucking business.

Bill of Lading (BOL)

A bill of lading (BOL) is the legal document that serves as the contract of carriage between the shipper and the carrier, listing the freight being shipped, the terms, and the parties involved.

Broker

A freight broker is a licensed middleman who connects shippers (companies with freight to move) with carriers (trucks to move it), taking a margin between what the shipper pays and what the carrier earns.

Business Bank Account

A business bank account is a separate checking account used for business income and expenses instead of mixing them with personal money.

Backhaul

Backhaul is a return or repositioning load that helps a truck move back toward home or a stronger freight market.

CDL Class A

A CDL Class A is the commercial driver's license that lets you operate a combination vehicle (tractor + trailer) with a gross combined weight rating of 26,001 lbs or more, where the towed unit is over 10,000 lbs.

CSA Score

CSA is FMCSA's safety measurement system that uses inspections, violations, and crash data to identify motor carriers needing safety attention.

Carrier Type

Carrier type describes how a motor carrier operates and what kind of freight or service it provides.

Cab Card

A cab card is an IRP registration document carried in the truck that shows the jurisdictions and weights tied to apportioned registration.

DUNS Number

A DUNS number is a unique 9-digit identifier issued by Dun & Bradstreet that's used by lenders, insurers, government agencies, and large brokers to verify and track your business.

Deadhead

Deadhead (DH) miles are the empty miles a truck drives between delivering one load and picking up the next.

Detention Pay

Detention pay is the hourly compensation a carrier earns when a driver is held at a shipper or receiver beyond the agreed "free time" for loading or unloading.

DOT Inspection

A DOT inspection is an official inspection of a commercial driver, vehicle, documents, and safety compliance.

Dry Van

A dry van is an enclosed trailer used to haul general freight that does not need temperature control.

Drop-and-Hook

Drop-and-hook is a load process where the driver drops one trailer and hooks to another trailer instead of waiting for live loading or unloading.

ELD (Electronic Logging Device)

An ELD is a federally required device that connects to your truck's engine and automatically records your driving hours, replacing paper logs.

EIN (Employer Identification Number)

An EIN is a 9-digit federal tax ID number that the IRS issues to your business, the way an SSN identifies an individual.

ELD Exemption

An ELD exemption is a limited situation where a driver may not be required to use an electronic logging device, while still needing compliant records.

Factoring

Factoring is selling your unpaid freight invoices to a third-party company for immediate cash (minus a fee), so you don't have to wait 30–60 days for brokers to pay.

FMCSA

FMCSA is the Federal Motor Carrier Safety Administration, the federal agency that regulates motor carrier safety and many trucking registration rules.

Form 2290 (HVUT)

Form 2290 is the IRS Heavy Highway Vehicle Use Tax return for taxable highway vehicles with a gross taxable weight of 55,000 pounds or more.

Flatbed

A flatbed is an open-deck trailer used for freight that is too large, heavy, or awkward for an enclosed trailer.

HVUT (Heavy Vehicle Use Tax / Form 2290)

HVUT (Heavy Vehicle Use Tax) is the annual federal tax on commercial vehicles with a taxable gross weight of 55,000 pounds or more, filed using IRS Form 2290.

Hazmat Endorsement

A hazmat endorsement (H) is an add-on to your CDL that lets you legally haul hazardous materials — fuel, chemicals, explosives, and anything requiring placards.

HOS / Hours of Service

Hours of Service rules limit how long commercial drivers can drive and work before required breaks and rest periods.

Hot Shot

Hot shot trucking usually means hauling smaller or time-sensitive loads with a pickup truck and trailer instead of a full class-8 tractor-trailer.

IFTA (International Fuel Tax Agreement)

IFTA is an agreement among U.S. states and Canadian provinces that lets interstate truckers file a single quarterly fuel tax return in their base state instead of filing separately in every state they drove through.

IRP (International Registration Plan)

IRP is the registration program that issues one "apportioned" license plate good in every state and province you operate in, with fees split based on the miles you drive in each.

ITIN (Individual Taxpayer Identification Number)

An ITIN is a 9-digit IRS-issued tax identification number for individuals who are required to have a U.S. taxpayer ID but don't qualify for a Social Security Number.

LLC (Limited Liability Company)

An LLC is a business entity that legally separates the owner ("member") from the business itself, protecting the owner's personal assets from business liabilities.

Load Board

A load board is an online marketplace where freight brokers post loads they need moved and carriers search for and book those loads.

MC Authority

MC authority is the federal operating permission, issued by the FMCSA, that lets you legally haul freight for hire across state lines.

MCS-150

MCS-150 is the FMCSA form motor carriers use to create or update their official USDOT registration details.

Net-30

Net-30 is a vendor payment term that lets you receive goods or services now and pay the full invoice within 30 days.

Owner-Operator

An owner-operator is a CDL driver who owns the truck they drive and operates as an independent business, rather than as a company employee.

OTR

OTR means over-the-road trucking, usually long-haul freight that runs across multiple states and keeps drivers away from home.

PAYDEX Score

PAYDEX is the Dun & Bradstreet business credit score — a 0–100 number that reflects how reliably your business pays its bills.

Per Diem (Trucking)

Per diem is the IRS-allowed daily allowance for meals and incidental expenses (M&IE) that truckers can deduct when away from home overnight.

Quarterly Estimated Taxes

Quarterly estimated taxes are periodic tax payments self-employed business owners may make during the year instead of waiting until tax season.

Reefer

A reefer is a refrigerated trailer used to haul temperature-controlled freight.

Settlement Statement

A settlement statement is the itemized pay breakdown that a carrier (for leased owner-operators) or a broker (for independents) issues per pay period, showing gross pay, deductions, and net pay per load.

SAFER

SAFER is FMCSA's public carrier lookup system where authority status, USDOT information, and safety snapshots can be reviewed.

Sole Proprietorship

A sole proprietorship is a business owned by one person without forming a separate legal entity like an LLC or corporation.

S-Corp

An S-Corp is a federal tax election that can change how business profits and owner wages are taxed.

Schedule C

Schedule C is the IRS form many sole proprietors use to report business profit or loss on their personal tax return.

Tanker Endorsement

A tanker endorsement is a CDL endorsement that allows a driver to operate certain commercial vehicles transporting liquids or gases in tanks.

USDOT Number

A USDOT number is the unique identifier the federal government assigns to your trucking business so the FMCSA and DOT can track your safety record.

UCR (Unified Carrier Registration)

UCR is an annual federal-state registration fee that interstate motor carriers, brokers, and freight forwarders pay based on fleet size.

W-2 vs 1099

W-2 generally means employee income with payroll withholding, while 1099 generally means contractor income without automatic tax withholding.