Do you want to start your own trucking business or become an owner operator? Give our knowledgeable team the opportunity to get you off to the right filings. We will guide you every step of the way.
To start with, what is trucking authority?
Trucking authority, also known as motor carrier authority or operating authority, is the permission granted to you by the government to get paid to move freight, and it’s a prerequisite for starting your business.
Please continue reading for more information.
Table of Contents
What Is Trucking Authority?
An official government permit known as a trucking authority allows people to transport goods for pay. Your trucking authority is primarily composed of two things: a both a USDOT and MC number. You must have a trucking authority if
- You want to start your own trucking company
- You want to become an owner operator
- You want to become a broker
Additionally, you must have your BOC-3 process agent filing on hand and ensure that your business can pass a new entrant safety audit.
The process of obtaining federal licensing is also known as obtaining an operating authority, motor carrier authority, or trucking authority. To run a for-hire trucking business that travels through or in more than one state, DOT and MC numbers are necessary.
Need more information on obtaining your trucking license? Check out Haulin Assets, our podcast about taking the wheel and launching your trucking business.
What Is Having Trucking Authority?
Businesses that operate trucks and want to succeed financially and build strong client relationships ought to acquire their own authority. By cutting out the middleman and contacting receivers and shippers directly, someone with authority can obtain freight. Although it does entail more work and responsibility, it is crucial for businesses that want to grow their clientele and profits. See more about How Long Can A Car Go Without An Oil Change?
A Trucking Authority: How Do I Get One?
There are numerous procedures and forms to fill out in order to obtain a trucking authority. For assistance, many trucking companies turn to organizations like AVAAL. The consulting services offered by AVAAL can assist your trucking company with all the requirements to obtain your own authority. We’ll make sure your application is accurate and that you have all the required paperwork.
Considerations When Getting Trucking Authority
You are putting yourself in the best possible position for a significant startup by obtaining your trucking authority to transport freight. You must be certain that you can secure the funding required to launch and successfully run the business. You should have enough money to purchase the trucks, trailers, and specialized hauling tools. Depending on the states you plan to operate in, you should be able to afford to pay your vehicle registration fees.
You should think about every other expense you will have before requesting your motor carrier authority. These include:
Compliance with Drug and Alcohol Regulations You need to put in place a number of measures for drug and alcohol testing when you first launch your trucking business. Purchase of the program will cost you some money. Ensure effectiveness to avoid any mistakes that might later cost your towing company money.
If you plan to transport freight in interstate commerce, you should also get a USDOT number. It will be useful for official audits, reviews, and unintentional investigations. You shouldn’t disregard it because it also aids in safety compliance.
A yearly tax known as the heavy vehicle use tax (HVUT) is levied to cover all the damage heavy hauling vehicles cause to the environment. The running of your new trucking company will require payment of it.
Trucking Authority Requirements
For new applicants seeking trucking authority, FMCS implements the requirements through the Unified Registration System (URS). You must first register through the URS to obtain trucking authority.
The FMCSA estimates that the processing time will be 20 to 25 business days (unless it needs to undergo a second review by the organization, in which case it could take an additional eight weeks).
Types Of Trucking Authority
The various types of authority will have an impact on the kind of insurance a carrier needs to carry in order to comply with FMCSA regulations.
- Motor Carrier of Property – requires proof of public liability and cargo insurance
- Motor Carrier of Household Goods – doesn’t require cargo insurance
You must submit this OP-1 form in order to apply for trucking authority, regardless of the type of authority.
Business Structure
Select the appropriate legal structure for your trucking company. You could choose a Limited Liability Company (LLC), which is a great option for start-up small businesses. Given how simple it is to maintain, you stand a good chance of success with it.
A corporation is an additional option for how you can set up your company. If you want to someday expand into a sizable transportation company, this is the best option. A sole proprietorship is not the best business structure because your assets are unprotected and you could lose everything.
Trucking Insurance
The FMCSA requires you to show proof of insurance proving your liability coverage before they will grant you their authority. Form BMC-91, which addresses public liability in the event of an accident that results in injury or property damage, must be submitted by your insurance company.
Please keep in mind that you SHOULD NOT send the FMCSA your insurance proof directly. Your insurance provider must submit the form and insurance certificate on your behalf in accordance with FMCSA regulations.
Additional Permits
According to your state of operation, different permits will be needed. You will need to obtain additional permits if you plan to transport goods in Mexico, Kentucky, or New York.
If the cargo you will be transporting to Kentucky weighs more than 59,999 pounds, for instance, you should obtain your Kentucky weight distance number. For loads that are being transported on the state’s highways and weigh 26,001 pounds or more, a New Mexico Weight Distance Tax permit is required.
Rates
The cost per mile must be determined if you want your trucking company to succeed. Due to their lack of knowledge regarding how much to charge for moving loads, the majority of trucking companies end up losing money. They eventually receive money, but it is not even enough to cover all of their ongoing costs. Do your research and even speak with other well-known, successful businesses when deciding on your rates. Always choose a business with trucking authority if you need to ship cargo. The best option worth taking into consideration is heavy haulers. There are numerous additional benefits to take advantage of in addition to the ideal prices we have established for our trucking services.
Cost
The $300 filing fee for the tucking authority is incurred when signing up for the FMCSA URS.
There are additional costs and fees that must be considered before you begin scheduling loads to haul. Explore our thorough guide when you’re ready; it will undoubtedly assist you in establishing your own trucking business.
The End
The government’s approval to transport clients’ freight and collect payment for it is known as trucking authority. It is also referred to as an operating authority or a motor carrier. If you want to start your own trucking company, you must get permission from the authorities. Depending on the state you are in, there are different requirements for obtaining a trucking license. Costs will also differ. It may take some patience because processing a trucking authority typically takes some time. Be cautious to ensure the success of your new hauling business as you consider obtaining your motor carrier authority.
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