How to Get Your Trucking Authority: 2024 Update

Important 2024 update: The MC number is on its way out

The Federal Motor Carrier Safety Administration (FMCSA) has announced plans for changes, including a new registration system that would eliminate the need for a motor carrier (MC) number. But until that happens — likely in 2025 — you still need an operating authority to start your trucking business.

What does it mean to have your own trucking authority?

Having your trucking authority, also known as operating authority and motor carrier authority, means you can legally operate as your own trucking company.

Depending on the kind of cargo you’re hauling, there are different types of motor carrier operating authorities, and some carriers will need multiple authorities to cover multiple types of cargo. Some states require intrastate authority if you’re moving loads within their borders. Make sure you apply for the operating authority or authorities relevant to your business, and don’t delay — the entire process can take upwards of two months.

Which carriers don’t need trucking authority?

Several motor carrier categories do not need an operating authority, including:

• Private carriers that haul their own freight.
• “For hire” carriers that exclusively haul cargo that is not federally regulated.
• A trucking company operating exclusively within federally designated commercial zones that are exempt from interstate authority rules.

How much does it cost to get your own trucking authority?

Federal operating authority costs $300 per type of cargo hauled. State-level authorities may also be required and come with additional costs. If your trucking authority is revoked by the FMCSA, reinstatement of your authority costs $80.

What are the benefits of having my own trucking authority?

Once you’ve been working as a company driver, carrier, or owner-operator for a while, it’s natural to want to move on to having your own authority. It’s a huge career growth opportunity, gives you complete independence, and can come with a pretty significant bump in pay if you’re running your business correctly.

There is a lot more work and responsibility involved, but it means you can hire your own drivers for your trucking business. Over time, you could have multiple trucks and drivers. You’ll also be responsible for finding loads and negotiating rates.

Where do I start?

• Decide on a name for your business. This is the beginning of the registration process to get your trucking authority. File your business paperwork with your state. Typically, this is done through the secretary of state’s office, but check your state’s official website to be sure. FYI: Some states require you to file your business under an assumed name or DBA (doing business as). Check your state’s official website to be sure.
• Decide on a business structure. Talk to an accountant to determine how to organize your own trucking business for maximum earnings. Research limited liability companies (LLCs), C corporations, S corporations, partnerships, and a sole proprietorship to make the right decision for your business.
• Get an EIN. Visit the IRS website for an Employer Identification Number (EIN), which you’ll need for tax purposes.
• Get preapproved for primary liability and cargo insurance. If you wait until the end of the process to learn that you aren’t approved for insurance, you’ll have spent a lot of time and resources unnecessarily — don’t skip this step!

What are the steps to getting my trucking authority?

Once you’ve finished the necessary steps, you can start gathering the required items. Fees for obtaining an MC number vary by state. Visit your state’s Department of Transportation/Motor Carrier website for specific fee information.

1. Apply for your trucking authority.

Complete the OP-1 form, the BOC-3 form, and pay the application fee. You’ll need the truck information (VIN, year, weight, etc.), a tax ID number, incorporation details, and license plate information (if you have it) for your commercial motor vehicles.

Once you complete the Motor Carrier Identification Report (MCS-150) and Safety Certification Application, you’ll receive your USDOT Number, which you need for a vehicle used in interstate commerce to move freight. (Side note: Unlike the MC number, the USDOT Number is not on the way out — it will be required for the FMCSA’s new Unified Registration System).

There is a mandatory 10-business day dispute period after your trucking authority application is posted to the Federal Register, during which anyone can protest your authority. Once it ends, you’ll need to post proof of your insurance policy and your BOC-3 form, which assigns a process agent — or a business in any state in which you operate — to receive and forward legal documents on your behalf.

The FMCSA will review your authority. When it’s approved, you’ll receive a letter from them along with an authority certificate, at which point you’ll be ready for the next step.

2. Secure your UCR permit.

Use your USDOT and MC numbers to apply for the Unified Carrier Registration (UCR) system. UCR verifies active insurance coverage in the states where you operate. Apply for your permit and learn more about the UCR system.

3. Pay your HVUT.

The Heavy Vehicle Use Tax is an annual tax assessed on all heavy vehicles operating on public highways. Research Form 2290, and when you’re ready, download the OOIDA worksheet. Complete this form before moving on to the next step.

4. Register for an IRP.

If you’ll be carrying freight across state lines or into Canada, you’ll need to register for the International Registration Plan (IRP). This plan is an agreement between the 48 contiguous states, the District of Columbia, and Canada that assesses licensing fees based on the distance operated in each jurisdiction. You will need to register through your local jurisdiction, which you can find in the IRP directory.

5. Set up an International Fuel Tax Agreement account.

Once you have an IRP account, you can apply for your International Fuel Tax Agreement (IFTA) account and license. IFTA is an agreement between the 48 contiguous states and Canada that simplifies fuel tax collection. It ensures each jurisdiction gets a share of fuel tax to support roads and transportation. 

With an IFTA license, you just have to submit one fuel tax return every quarter to your base jurisdiction. Learn about IFTA, including how to contact your base jurisdiction to set up your account. Some circumstances will require extra permits. Kentucky, New Mexico, and New York require weight distance permits to operate, and Oregon requires a permit and a bond. You’ll need the Standard Carrier Alpha Code (SCAC) if you’re moving military, government, international, or intermodal loads.

6. Enroll in a drug and alcohol testing program and obtain liability and cargo insurance.

The FMCSA and DOT require all motor carriers to have a negative drug test prior to hiring drivers or allowing them to drive themselves. Learn more about the rules and regulations related to drug and alcohol testing on the FMCSA website.

All supervisors of commercial drivers are required to complete two hours of controlled-substance training, and a designated employee representative (DER) must be named who is authorized to immediately remove employees from duty if they cannot pass a drug or alcohol test.

After you complete these steps, you’ll be enrolled in the New Entrant Safety Assurance Program.

Within your first 18 months of doing business, you will have a mandatory “New Entrant” audit to verify compliance with federal trucking regulations. Maintaining good records from the start will ensure you’re prepared. Learn more about the New Entrant Safety Assurance Program on the FMCSA website.

Make sure you maintain:

• Driver qualification files/employee records
• Driver logs
• Safety records
• Hours of Service (HOS) records
• Accident reporting
• Maintenance records
• All drug and alcohol testing program records and reports

How to check your application status

To check the status of your application and whether your operating authority has been issued, go to the SAFER website. Under FMCSA searches, choose Licensing & Insurance, enter your USDOT or MC number, and click search. When you scroll to the bottom and click on Authority History, you can see the date your operating authority was granted.

Own your authority and get started!

Getting your trucking authority is just the beginning. Now you need to know where your freight is coming from so you have something to move and can start making money. Get familiar with load boards if you don’t have customers lined up, and start building relationships with quality freight brokers that you can work with in the future. The Truckstop Load Board is a great way to connect with trusted brokers. Get started today!