Trucking Authority
Written by Frank Balbuena Published on March 26, 2021, 4:39 p.m.
How to Start Your Own Compliant Trucking Authority
Are you ready to secure Trucking Authority so that you can become your own boss? If so, you've got to understand that getting trucking authority can seem intimidating. There’s so much competing information online that it’s hard to figure out what to do. Plus, there are a series of specific steps you have to take. Also, getting your own authority requires many different variables. These include attention to detail, start-up cash, and a get-it-done attitude.
Are you having difficulty determining how to start the Trucking Authority process ? If so, our team is here to help. We’ve listed below many common questions about obtaining authority such as licensing a drug and alcohol for owner-operators and much more. You can expect the whole process to take more than two months.
What Does Securing Your Own Trucking Authority Mean?
Say that you have your own Carrier Authority. This means that the government allows you to make money hauling freight. Plus, you can do so while operating as your own trucking business. The FMCSA is the organization that grants Operating Authority. FMCSA is an abbreviation of the Federal Motor Carrier Safety Administration. Operating Authority gets issued through an MC Number. MC refers to Motor Carrier.
There are various forms of authority. It depends on the type of cargo that your team will transport. Some carriers need more than one authority that applies to different forms of cargo. Say that you're transporting loads within a given state. There are states provinces that provide required Intrastate Authority. You've got to ensure that you're applying for authorities relevant to your company.
What Are the Benefits of Having Trucking Authority?
It’s normal to want to secure your authority after working as an owner-operator/trucker. Securing authority is a crucial career growth opportunity. Plus, authority helps provide true independence. And that independence can lead to large bumps in pay. There’s plenty of work and responsibilities involved in this process. But having authority means that you can hire any driver that you’d like. Then, you can start having many different drivers work for you. Keep in mind you’ll get tasked with locating and negotiating loads. That’s why our organization can provide you with a load board to find freight. It is low-cost and contains many potential loads to select.
How Do I Start the Trucking Authority Process?
Listed below are a series of actions you can take to get your own Trucking Authority. Please contact our experts if you have any questions about these key actions.
Determine the Type of Authority That You Need
The form of authority the government grants depends on finding the type of cargo that gets carried. If you transport many types of cargo, you’ll need to secure different authorities that apply. You can learn more about types of authority on the FMCSA website. There are states that require Intrastate Authority. This form of authority applies to moving goods within certain states. Make sure that you only apply for authorities that affect your company.
Choose the Name of Your Business
File your business with your specific state. This takes place through every state’s Secretary of State. (But browse your state government’s website to make sure.) Some states will need you to file the business under a DBA/assumed name. DBA refers to doing business as.
Determine a Business Structure
It’s best to speak with an accountant about how to organize a business. You want to do so in a manner that positions you for financial success. Try researching the following five factors.
1. Having your own LLCs: Limited Liability Companies.
2. S Corporations.
3. C Corporations.
4. Sole Proprietorships.
5. Partnerships. Assessing each of these factors will help you make an informed business decision.
Secure an EIN
What is an EIN? It stands for Employer Identification Number. You will need one for tax purposes that will accept your business money straight.
Get Pre-Approval
You will need to get pre-approved for cargo insurance and primary liability. Never skip taking care of this key action. Why? Because insurance will protect you if an accident takes place. Trucking businesses cannot operate without insurance.
Secure an MC Number
You can check out the FMCSA official website to learn how to get an MC Number.
Know Where Freight Comes From
You’ve got to know where your company’s freight comes from. Why? So that you will have something to move at all times and can make consistent revenue. If you don't have customers waiting, try to become familiar with load boards. Also, try to build relationships with brokers that can help you out in the future. Check out our organization’s Load Board to learn more.
Have More Than Sixty Days of Extra Cash
Consider setting the money aside to cover your operating costs, such as repairs and fuel. Owner-operators understand that it can sometimes take 45 days for an invoice to get paid. So, when building up your business, stay prepared by having plenty of operating cash.
The Steps for Securing Trucking Authority
Once you’ve taken care of the Trucking Authority actions above, it’s time to do the steps listed below. Keep in mind that fees will vary depending on the state that you live in. You can access any state’s DOT/motor carrier website to learn more.
Trucking Authority Step 1: Apply for Authority
First, you’ll want to fill out the OP-1 or OP-1(P) form. Next, you’ll have to fill out the BOC-3 form and pay for the application fee. You will need the following truck information.
- The VIN.
- The year.
- The weight of the truck.
- License plate information.
You’ll also need to submit incorporation details and your tax ID number.
The next part of Step 1 involves completing a Safety Certification Application. You will then need to complete an MCS-150. (MCS-150 refers to a Motor Carrier Identification Report.) Doing so will position you to receive a USDOT Number. That number is crucial for moving freight in vehicles for interstate commerce.
There is a standard ten-business day waiting period that takes place. Might this happens after the application gets posted through the Federal Registrar? Any person can protest your authority during this process. You will then need to submit proof of insurance and provide a BOC-3 form. The BOC-3 allows an agent/business to receive and forward legal documents. The FMCSA gets tasked with reviewing your authority. You will receive an official FMCSA letter when approval takes place. Then, you can continue the following Trucking Authority steps.
HVUT refers to the Heavy Vehicle Use Tax. This is an annual tax that applies to all heavy vehicles that move across public highways. Begin this process by accessing irs Form 2290. Then, you should download an OOIDA worksheet. You have to complete the worksheet before you can agree to an IRP.
Trucking Authority Step 2: Get a UCR Permit
You now need to apply for the UCR system: Unified Carrier Registration. Do so using your MC Number and USDOT Number. The UCR system will verify your active insurance information for every state.
Trucking Authority Step 3: Pay the HVUT
Trucking Authority Step 4: Complete IRP Registration
IRP refers to the International Registration Plan. This is an agreement that applies to all 48 continental states. IRP provides payment for licensing fees. The terms of payment depend on the operating distance across all jurisdictions. In other words, you need licensing to take part in interstate transportation. Go to the IRP website for more information about completing the process and Heavy weight tax 2290 from the irs. You have to hold an IRP account before you're able to create an IFTA account. Visit How to Prepare for a Compliance DOT Audit.
Trucking Authority Step 5: Create an IFTA Account
Having your own IFTA serves as an agreement between continental states about fuel tax collection policies. (IFTA refers to the International Fuel Tax Agreement.) IFTA regulations will allow you to travel between jurisdictions. This ensures that every state keeps a share of the revenue. The revenue supports transportation and road needs.
An IFTA license enables business owners to submit a required fuel tax return. This takes place every quarter. Each tax return applies to the base jurisdiction. When learning about IFTA, focus on contacting your base jurisdiction. Why? So that you can create your account without any delays.
Sometimes businesses will need to secure extra permits. New Mexico, Kentucky, and New York request weight distance permits before operations begin. Oregon asks for both a permit and a bond. Are you moving military, international, intermodal, or government loads? If so, you’ll need the SCAC: Standard Carrier Alpha Code.
Trucking Authority Step 6: Take Part in a Drug & Alcohol Testing Program
The DOT and FMCSA require motor carriers to submit negative drug tests. This takes place before drivers can get hired or operators can drive on their own. You can learn more about drug and alcohol testing policies on the FMCSA website. Supervisors of commercial drivers must finish 2 hours of controlled substance training. Each company has to select a DER. (DER refers to a Designated Employee Representative.) A DER’s authorized to fire employees who fail drug and alcohol tests. Check out DOT Authority Package.
Enroll in the New Entrant Safety Assurance Program for Trucking Authority
Have you completed all six of the above Trucking Authority steps? If so, the government will enroll you in the New Entrant Safety Assurance Program. The program will audit your company for compliance with all federal regulations. This takes place within the first eighteen months of doing business. To ensure compliance, begin maintaining good records right away. Also, make sure that you maintain the following seven factors.
1. Employee records and driver qualification files.
2. Driver logs.
3. Safety records.
4. HOS: Hours of Service records.
5. Accident reporting.
6. Maintenance records.
7. Drug and Alcohol Testing Program reports and records.
8. Fuel card, to keep fuel record.
Get Your Trucking Authority One Step at a Time
Sure, there are many steps when it comes to securing Trucking Authority. But do not let yourself get stressed out. Instead, concentrate on taking everything one step at a time. Drivers and truckers become owner-operators every day. If they can do it, so can you. And remember- our organization is here to help you at any time. Call, email, or message our team to find out more about securing Operating Authority. We look forward to helping you get Trucking Authority. Visit FMCSA Registration.
How Do I Secure Operating Authority For My Trucking Business?
Providing FMCSA operating authority is one of the premier services of our organization. The third-party authority specialists that maintenance FMCSAregistration.com are standing by. All you've got to do is place an operating authority order right here on our website for assurance. Or, you can pick up the phone and give us a call for a customized order. Either way, we’re prepared to provide authority to you and your motor carrier. This way, you can adhere to all official FMCSA and DOT regulations. Without question, our business is the capital of securing operating authority. So, if you're ready to get started, please browse our website or dial our number.
Having operating authority is crucial to the success of every trucking professional. Authority refers to the type of operation that the DOT and FMCSA will let you run. It also relates to the exact type of cargo and goods that you can transport. Our organization can provide you with “MC” authority through an MC number. This authority can also stem from an “MX” or “FF” number through the FMCSA.
Some trucking companies even need BOC or international registration. It depends on the exact authority that your carrier needs to get started. Some trucking businesses need more than one operating authority to do business. Trust us. You do not want to feel limited and get started in this industry on the wrong foot. It’s best to not delay getting registered with authority in operating motor vehicles.
Remember, there are many regulations in the United States trucking industry. That's why it’s crucial to make sure that you've filled out the right paperwork and includes the right fuel card. As a result, your carrier can avoid fines, penalties, and delays from the FMCSA. There are many types of businesses that need interstate operating authority. These include almost all for-hire carriers in the entire country.
Say that your business transports passengers in interstate commerce. Or, it even arranges the transportation of the passengers. Either way, you must have interstate operating authority. Otherwise, the government will block you from taking part in interstate commerce. Even transporting goods with federal government regulations involves authority.
Are the KYU Number and IFTA the Same Thing?
No. A KYU number focuses on surtax, fuel tax, and the Kentucky Weight Distance Tax (KYU). Say that you have an IFTA tax form in front of you. You cannot pay the KYU fees using the IFTA form. IFTA functions as a standard fuel tax in the US trucking industry. The tax gets based on how much fuel each truck or vehicle consumes. Truckers have to report how much fuel they use within specific IFTA jurisdictions.
Are you unsure if your vehicle falls under IFTA guidelines? The standard capital weight of an IFTA vehicle is at least 26,000 pounds. But an IFTA-taxed vehicle assurance is also any vehicle that has more than three axles. (No matter how much the truck or vehicle weighs.) Meanwhile, KYU functions as the standard highway usage tax in trucking. It’s based only on miles driven within Kentucky state lines. The weight of a KYU vehicle starts at over 59,999 pounds. Say you’ve started driving in Kentucky while operating a vehicle of this size. This means you must pay both the IFTA fuel tax and KYU fees can be searched with fuel cards sometimes.
Who Needs the TXDOT Number?
The term “TXDOT number” refers to a Texas Department of Transportation number. The state government uses this number to recognize commercial vehicle operators. Say that you need to get started using a TXDOT number. You must display your number on the vehicle at all times. Think of the TXDOT number like a USDOT number. The FMCSA capital rules for displaying both numbers do not differ much at all.
Almost every commercial vehicle running within the state of Texas needs a TXDOT number. In most cases, you still need a number even if you do not transport passengers. Or, even if you do not haul hazardous goods or materials. Tons of cargo transporting businesses use the TXDOT number in Texas every day. The number is for a CMV that weighs at least 26,000 pounds. Even most businesses transporting household goods for money use the number.
What Does “UCR” Mean and Who Needs It?
UCR refers to the “Unified Carrier Registration” program. This capital FMCSA program is for companies and individuals in trucking. It applies to steps on behalf of operating commercial motor vehicles in interstate commerce. Each business must get registered through UCR within every participating state. Then, a company will pay an annual fee related to the size of its fleet.
Say that you've started operating in the US interstate commerce sector. There's a strong chance that you must pay UCR fees step by step. UCR is for almost every motor carrier of property. It includes both private and for-hire carriers. Plus, motor carriers transporting for-hire passengers must also pay for UCR. Even freight forwarders have to get started using the UCR program. Now, let’s say that your carrier is based within a state that does not use UCR. (Florida is a common example.) But you're operating as an interstate carrier and you cross state lines in your vehicle. This means that you must still pay capital UCR fees through the FMCSA.
What Level of Trucking Insurance Do I Need?
The exact amount of trucking insurance you will need to register depends on specific information. So, let’s use a broad estimate for the cost of semi-truck insurance. Say that you started leasing a few vehicle's with a motor carrier or trucking company. You can expect to pay around $8,000 to $12,000 per year for insurance. This comes out to about $650 to $1400 per month. But let’s now assume that you're operating through your own authority. The run cost of trucking insurance will ever go up. You will need to spend around $12,000 to $20,000 per independent truck running each year.
Contact Us To Learn More About Receiving Your Operating Authority
It’s time to get started operating as your boss with trucking authority. But sometimes the life of a boss isn’t so easy when getting a new sole paperwork to register agents. There are many DOT and FMCSA regulations to keep up with. But that is where the freight driver specialists in our organization can assist. We’re standing by to provide countless benefits to your own trucking team assurance.
Our agents can get every heavy vehicle of new customers registered ASAP. Plus, we can help you with other FMCSA tasks like filing driver qualification files. Whether you need a load board or employer identification number (EID), we can assist. All you've got to do is have your independent trucking company contact us. We’re ready to help you get started and secure your very own authority.
Call Us Now for Trucking Registration Help
Without question, our organization is the registration llc™ capital of carriers hauling freight. Our mission includes preventing an employer from getting hit with DOT penalties. We execute that mission within the most secure third-party FMCSA filing website. Through assurance, our experts can help you in getting your own authority in trucking. This way, you can remain compliant whenever you drive a CMV.
So, if you need carrier authority, please call our motor carrier authority team. Within minutes, we’ll review what your independent trucking business needs to run, to help brokers. Then, a few of our experts can provide the best registration services in the country. We cannot wait to position your carrier to transport cargo across all states.
