DOT Vehicles Operating Under Different Legal Entities

 

DOT Vehicles Operating Under Different Legal Entities

 

If vehicles are titled in the names of wholly owned subsidiaries they are operating under, that are not registered DBA's, that do have separate Tax ID numbers, is there a way they can still operate under the parent DOT number? Or do they have to have separate DOT numbers?

If vehicles are being reported as operating under these subsidiaries on Accounting/Tax Recrods, do the vehicle titles have to be titled in those subsidiary names or can they be titled in the parent company name?

Please note that in both cases the parent company is held responsible for the safe operation of the vehicle. Thanks.

Anonymous (not verified)
Anonymous's picture

I'm responding on behalf of FleetAnswers member, mPayette, who wrote:

"As long as the various subsidiaries are listed on the MCS-150 form, they can all operate under the same DOT #"

Anonymous (not verified)
Anonymous's picture

I think you can operate subsidaries under the same DOT number if they operate under the same tax ID. If you have a different tax ID,
you must have a different DOT. The titles can be in the parent company name, however there must be a written document stating
the subsidiary and relationships. We do this in the company I work for. Sometimes there will be some difficulty with DMV on tag processing, but with proper documents, its possible. If the subsidary is in a different state then the parent company , it will be more
difficult .

Anonymous (not verified)
Anonymous's picture

Are you required to do inter-company charges and eliminations (lease agreement) between the parent company and subsidiaries, since all are titled under the parent company?

Anonymous (not verified)
Anonymous's picture

Even if they have different Tax ID numbers?

Anonymous (not verified)
Anonymous's picture

I'm responding on behalf of fleet personnel, Tcedotal, who wrote:

"All other entities would have to have a lease between them and the parent (DOT numbered) company regardless of who they are titled too. We run several companies and one DOT number with our equipment titled in the various companies' names. We are in Louisiana, but have not had any problems in the other states we run in."

Anonymous (not verified)
Anonymous's picture

 

"Are you required to do inter-company charges and eliminations (lease agreement) between the parent company and subsidiaries, since all are titled under the parent company?"

I'm responding on behalf of fleet personnel, Tcedotal, who wrote:

"Yes, we are the opposite...the parent company is the one with the DOT number but has no equipment titled in it's name. We have leases between the parent company and each of the other entities. All of our companies have separate Tax ID numbers as well."

"Parent company has DOT number, has appropriate insurance, and all subsidiaries are listed as per insurance regulations. We have corporate leases between the parent company and subsidiaries that cover the ownership of the equipment. We have also had two audits in recent years that confirmed our procedure; addressing company vehicles only-not owner/operators. Separate DOT numbers would require a separate insurance policy for each individual legal entity. Everything we have runs under the parent company regardless of which entity the equipment is registered to."