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The Process of Getting Your Own Trucking Authority

Wondering how to start a freight brokerage business or already have a business but don’t know what to do next?

Well, the first thing any freight brokerage company needs is trucking authority. What’s that?

Let’s find out.

What is trucking authority?

Trucking authority, operating authority, or motor carrier authority is legal permission to transport goods in exchange for a profit. Without trucking authority, delivering goods or crossing boundaries is not permissible.

But why do we need trucking authority with so many firms offering to do it for us, right?

While it is a good option if you’re unable to build your rig, having your authority lets you eliminate the cost paid to middlemen. You know what this means for your business–more profit!

Hang on, before you rush to Google to find out “how to get trucking authority?”, we’ve covered that too. The next section will give you all the information needed for getting trucking authority.

How to get your trucking authority?

Getting your trucking authority is quite simple, contrary to popular opinion. With the right documents, you can set up a trucking authority company within a month!

In rare cases, if your application is subject to further review the process can take a few more weeks. Although the process is pretty straightforward, the waiting period can be daunting for most applicants. But it is worth it. So, let’s find out how you can apply for trucking authority and stay saving.

Operating authority is typically issued through the Federal Motor Carrier Safety Administration (FMCSA) as a Motor Carrier (MC) number.

Before filling out the application, there are a few factors you must consider.

  • What kind of authority do you need?

Authority is based on the type of cargo your business will be dealing with. Carriers may need multiple authorities for different types of cargo. Apply for an authority or authorities that are relevant to your business.

  • Decide a business name

Based on the state you’re in, file your business with your state. This is generally done through the Secretary of State but check the official website of your state to be sure.

  • Getting an EIN and MC number

Visit the IRS website to get your Employee Identification Number (EIN) for tax-related purposes. For the MC number visit the FMCSA website.

  • Are you approved for cargo insurance?

If you wait until the last minute to file for insurance only to find out that you aren’t approved for it, you’ll have spent unnecessary time and resources.

Now let’s look at the steps to get your trucking authority.

Note- The costs may vary based on the state. Check the trucking authority packages available on your state’s department of motor carrier’s website.

Step 1: Filing relevant forms

On the FMCSA website, you can download all the forms that you need to fill and submit.

You’ll need the truck information, tax information, and license plate information (if any).

Step 2: Securing UCR permit

Once you submit the application form you’ll receive a USDOT number necessary to move freight. Use the USDOT and MC number to apply for the Unified Carrier Registration (UCR) system.

Step 3: Apply for liability and cargo insurance

While waiting for your application, apply for insurance. Make sure the insurance company notifies the bank regarding your coverage.

Step 4: Contact Department of Transportation (DOT)

After receiving the permit, contact the DOT to get hold of International Registration Plan (IRP) forms, and process further requirements like physical and drug tests, heavy vehicle fuel tax, payment for the registration fee, and so on.

This simple trucking authority checklist will help you get a commercial truck authority with ease. Owning a trucking authority helps you operate independently and increase profit. If you haven’t applied for authority yet, it’s high time you did.

 

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