What do I need to get my own trucking authority? This is a common question among aspiring trucking entrepreneurs who dream of starting their own trucking company. Obtaining trucking authority is a crucial step in establishing a legitimate and compliant trucking business. In this article, we will discuss the essential requirements and steps to acquire your own trucking authority.
1. Understand the trucking industry regulations:
Before diving into the process of obtaining trucking authority, it is essential to familiarize yourself with the regulations and standards set by the Federal Motor Carrier Safety Administration (FMCSA). This includes understanding the different types of operating authority, such as motor carrier, broker, and freight forwarder, and the specific regulations that apply to each.
2. Choose a legal business entity:
To legally operate a trucking business, you must establish a business entity. This can be a sole proprietorship, partnership, corporation, or limited liability company (LLC). The type of entity you choose will depend on your business goals, tax considerations, and liability protection needs.
3. Obtain an Employer Identification Number (EIN):
An EIN is a unique nine-digit number issued by the IRS to identify your business. It is required for tax purposes and to open a business bank account, apply for insurance, and obtain a trucking authority.
4. Secure necessary insurance:
Insurance is a critical component of your trucking business. You will need to obtain liability insurance, cargo insurance, and other coverage depending on the type of operations you plan to conduct. Consult with an insurance agent to determine the appropriate coverage for your business.
5. Complete the FMCSA application:
To obtain your trucking authority, you must complete and submit an application to the FMCSA. This application includes information about your business, such as the type of authority you are applying for, the types of vehicles you will operate, and the states in which you will operate. Be prepared to provide detailed information about your company, including its ownership, financials, and safety compliance.
6. Pass the safety audit:
The FMCSA may conduct a safety audit to ensure your company complies with safety regulations. This audit can include a review of your driving records, vehicle maintenance records, and compliance with hours of service regulations. It is essential to maintain accurate and up-to-date records to pass this audit.
7. Obtain a USDOT number:
A USDOT number is a unique identifier issued by the FMCSA to motor carriers. It is required for all commercial motor vehicles operating in interstate commerce. To obtain a USDOT number, you must complete the FMCSA application and pass the safety audit.
8. Obtain a MC number:
Once you have a USDOT number and pass the safety audit, you can apply for a Motor Carrier (MC) number. This number is required to operate as a motor carrier in the United States. The MC number will be used to identify your business on shipping documents and to comply with federal regulations.
By following these steps and ensuring compliance with all relevant regulations, you can successfully obtain your own trucking authority and start your journey as a trucking entrepreneur. Remember that maintaining compliance and staying informed about industry changes is crucial for the long-term success of your trucking business.
