Trucking Authority: 7 Easy Steps on How to Get One

Trucking Authority: 7 Easy Steps on How to Get One

Today we will start to go deep in explaining the requirements we have in order to sing an agreement with any fleet or owner operator.

The firs one is: The operations authority must be 90 days or older in order to sign up
Lest start defining what is the Operating Authority.
A trucking authority or operating authority is a license issued by the Federal Motor Carrier Safety Administration (FMCSA) that legally allows you to collect payments in exchange for the movement of freight to move. It’s required by law for any new trucking company prior to beginning business operations.

Getting your own operating authority means going into business for yourself. So getting your own trucking authority is requirement if you are now becoming an independent owner-operator.

Owning your own trucking authority gives you access to growth your business. Since you have the ability  to hire drivers to operate under your authority.

You can do this by “leasing on” other owner-operators or by acquiring your own trucks and hiring drivers that you can control.

Leasing on an owner-operator simply means that another driver will supply the truck and trailer, but you as the business owner will supply the government registration and insurance requirements that allow them to operate legally.

Different types of trucking authority; how to choose the right one for you

There are a few different types of operating authorities, so choosing one that is right for you depends on what kind of business you want to start and the types of loads you want to haul.
According to the FMCSA website, there are 2 types of carrier authorities that can authorize you to haul different types of domestic freight.
Motor Carrier of Property (except Household Goods)
A motor carrier of property is licensed to transport regulated commodities in exchange for payment.
These carriers are NOT permitted to transport household goods between residences.
Example: Any trucking company that exclusively handles business-to-business freight.

Motor Carrier of Household Goods
A carrier of household goods is authorized for hire by the general public to transport household goods in
exchange for payment. A household good is defined as any personal item that will be used at home.
This includes goods being shipped from a factory to a retail store if the goods are purchased with the intent to be used in a home and transported at the request of the householder who pays for the transportation charges.
Example: Any standard moving company.

If you are trying to decide which operating authority is right for you as a driver, we recommend starting as a motor carrier of property.
Household good moves involve another level of liability since you are heavily involved in the transport of the general publics personal effects.
Household goods carriers typically have a very hands-on role in loading and unloading their trucks, whereas property-only carriers enjoy the benefits of no-touch freight.

How do I get my own trucking authority?

If you already made the commitment to go off on your own and get your trucking authority, congratulations, you have already done the hardest part.
Starting your own business is scary and unpredictable, but once you take the leap, getting your authority is as easy as filing any paperwork.
Following these steps will help streamline the process of filing with the right government departments and obtaining your authority as quickly as possible.

1. Register your business
Before you file with the FMCSA, you need to incorporate your business. Choose a unique name and consult with a legal or accounting professional to determine the best business structure and location for
your personal financial situation and future goals.

2. Obtain an Employer Identification Number (EIN) from the IRS
An EIN will help the government identify you as a tax-paying entity. You will need this to separate your business from your personal tax records. This is necessary for things like building business credit, signing
up with factoring companies, and insurance registrations.

3. Seek Pre-approval for Primary Liability and Cargo Insurance
You will need insurance to protect you in the event of an accident or cargo damage. If you wait until the end of the registration process and learn that you are not eligible for insurance, you will have wasted
time and money.
The insurance levels required will vary based on the type of business you're starting, but the minimum required on primary liability will run anywhere from $750,000 to $1,000,000. Once you obtain coverage, you will need to have your insurance provider send proof of coverage directly to the FMCSA for them to keep on file.
We require at least $1,000,000 in liability insurance and $100,000 in cargo insurance

4. Apply for your USDOT and MC Number
Any business operating as a for-hire carrier of property is required to hold an MC (Motor Carrier) number in addition to a USDOT number.
First-time applicants will be given both at the same time while going through the FMCSA online registration process.

Make sure you have these documents and information available to complete the application:
Your business registration
EIN Number
Dun and Bradstreet Number
Company officers with title and identification

5. File for a BOC-3
A BOC-3 is appointing a registered agent to accept legal documents and communication from the government on your behalf. The FMCSA requires you to have one in every state you operate.

6. Set-up an International Registration Plan (IRP) and Get Your Apportioned Tags
The IRP regulates commercial vehicles operating in the 48 continental states, and you will need the special tags to comply with government regulations.

To apply, you will need:

Vehicle identifying info (VIN, Serial, License Plate, Make, Model)
Vehicle purchase price & Date
Exact or Estimated miles driven
You can start the process of applying for your IRP here.

7. Make an IFTA Account
IFTA stands for the International Fuel Tax Agreement, and it regulates the reporting of fuel use by motor carriers. Every vehicle in your fleet must be registered and will have to report fuel consumption at the
end of every year. They are required to provide estimates for the coming year as well.

You can register for IFTA by applying in your company’s base state. All 48 Contiguous states recognize
the IFTA registration.

Contact us by filling the Contact Us

Or make us a call