How to Get Your Own Trucking Authority
The process of attaining your own trucking authority is not easy. It requires you to follow several steps which include applying for a USDot number, an MC number and much more. There are different trucking authority packages and you will have to choose one according to your carrier and business type. For newbies, all of this might sound confusing and, well, it certainly is. However, we will be guiding you through the process of getting your own trucking authority. Be your own boss in the process!
What is Trucking Authority?
First thing’s first; what is trucking authority? Well, it is a permit, granted to you by the Federal Motor Carrier Safety Administration (FMCSA) to transport freight. Trucking authority is also known as operating authority and it is important to understand that both are one and the same thing. If you want to transport freight between different states, you must have your trucking authority. It is mandatory.
An operating authority gives you the power to choose your own trucking load and pick your own routes, scheduling everything according to your wish and comfort. It basically brings freedom of operation. You can operate your truck, as per your will, without any restrictions.
Therefore, it is extremely important to get your trucking authority if you want to operate and transport freight on your own. But the question for beginners is where to start? The process of getting an operating authority is a bit daunting and seems quite challenging. But, if you follow some simple and easy steps, you will figure out that it is not that tough at all.
How to get your trucking authority?
Here are the simple steps that one needs to follow to gain their trucking authority:
- Establish your business:
Being an owner-operator is similar to being a business owner. First, you need to define a business structure. Trucking business entities are hard to set up as there are various ways it can be done. However, the only way to understand the type of business you want to set up is through understanding all the ways to establish a business entity. They are as follows:
- Sole Proprietorship
- Partnership
- Corporation
- Limited liability corporation
- Limited liability partnership
- Apply for a USDot number:
The next step is to apply for a USDot number. You can visit the official website of FMCSA for applying. The process is quite simple and straightforward.
- Get an MC Number:
Motor carrier numbers, also known as MC numbers, are needed by the government to keep track of freight brokers and carriers. Once you get your USDot number, you have to apply for this.
- BOC-3 Filing:
BOC-3 filing is a crucial step in gaining trucking authority. You have to designate a process agent as they represent your carrier in case there are any legal proceedings. They serve lawsuits and carry out proceedings that are not based in your locality.
- Trucking Insurance:
Once the boc-3 process agent is designated, you need to get your truck insurance. Trucking insurance is similar to your personal vehicle insurance, covering both bodily injuries and vehicle damage. It also covers other aspects of the trucking operation. For instance, it will cover the damage (if any) that is caused to your cargo. It is mandatory to get your truck insured.
- Complete the UCR:
UCR is the Union Carrier Registration and it is an annual fee that all trucking companies have to pay. The UCR fee is determined by the size of the fleet the company carries. Operators who own a single truck will have a low UCR fee as compared to people who have a lot of trucks.
- Sweet Signage:
Once you have gained your authority, you require two important pieces of signage on your truck:
- The legal name of the motor carrier.
- The DOT number that has been issued by the FMCSA.
The signage must be visible to the eye easily, even from a distance.
CONCLUSION
Following these 7 steps, you can get your trucking authority and start operating it under the guidance of the government laws. Make sure that you go step by step carefully.
