Taking the first steps toward achieving self-authority

In 2021, freight transport will be in greater demand than ever before, thanks to globalization and the growing popularity of online commerce. The trucking industry remains a vital part of the American economy as people increasingly rely on shipping.

The U.S. Department of Transportation requires all trucking companies to register. Vehicle type, safety, cargo, and compliance are all included in a company’s DOT number. If you’re hauling loads for freight brokers or shippers, you can see this data. If your company’s information has changed or is no longer current, your USDOT number will need to be reissued.

However, obtaining an operating authority is not as simple as it may seem at first glance. Many procedures and conditions must be completed before the process may begin. Not only will you be required to pay for your trucking insurance and other obligations, but you’ll also be required to pay for your operating authority.

Do You Need an Operating Authority?

These are the steps you must take in order to obtain an Operating Authority.

Organize a company’s finances.

  • The International Revenue Service (IRS) website allows you to apply for an Employer Identification Number (EIN).
  • Make an account with the United States Department of Commerce (USDOT) and obtain a USDOT Number and Personal Identification Number (PIN).
  • To obtain an MC Number, you must register with the FMCSA.
  • Your BOC-3 has been submitted (Designation of Agents for Service of Process).
  • Have your insurance company email FMCSA a copy of the policies you have in place.
  • International Registration Plan registration is now open! (IRP).
  • IFA registration is required to participate in IFA (IFTA)

What Is the Cost of an Operating Authority?

An application fee of $300 will be required by the FMCSA when you apply for operating authority.

In addition to this, you’ll want to save a lot more money. Even though obtaining an EIN and a USDOT number is free, the other documents you must submit are.

Filing your BOC-3 on your own will set you back $20-$40, but if you engage a process server, the fee will be considerably more.

According to your type of operating authority, your truck insurance costs will vary. Find out your operating authority’s insurance requirements and talk to a reputable insurance provider. At the very least, you should budget about $700 each month to cover your expenses. The IRP and IFTA registration fees are additionally tacked on to the final total.

In addition to these additional costs, you should also keep in mind your business’s operational costs while you’re applying for operating authority. Overall, completing all of your prerequisites and being granted operating authority can take two to three months.

Despite the fact that you will receive your MC number within 24 hours after registering, there is a lot of preparation required beforehand. Months are required to complete all of the steps listed in the preceding section.

Creating a business plan and obtaining an EIN might take up to 10 days, depending on the complexity of your organization. It takes between four and six weeks for a USDOT number to be issued once you have this. A USDOT number is required to apply for an MC number from FMCSA.

Ten-Day Protest Period and Time for Processing

It’s still not possible to run a trucking business even after receiving your MC number. To obtain trucker insurance, you must submit a BOC-3 and wait out a ten-day protest period before submitting your application.

As long as you’re using a process agent or shipping the file directly to FMCSA, you should allow at least 72 hours for the BOC-3 to be processed and filed.

You can receive insurance at a price you’re comfortable with. You should be able to get the insurance you require within a day or two. Then, promptly notify FMCSA of your insurance coverage so that your operating authority can be activated.

Registration for IFTA will take between three and five days, and IRP registration may take anywhere from seven to fourteen business days.

Acquire Truck Insurance on a Budget

On top of everything else, trucker insurance is the most expensive of the above-mentioned fees. Primary liability insurance and cargo insurance are two types of trucking insurance you may be required to have, depending on the operating license you seek for.

If you’re a motor carrier with a property-based operating authority, cargo insurance isn’t necessary. Having one, on the other hand, can have a significant impact on the amount of freight you are permitted to transport.

However, if you’re on a tight budget, getting your operating authority is the most important step. If this is the case, you may be able to obtain an FMCSA-approved semi trucking authority.

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