Are you considering venturing into the world of trucking as an owner-operator? If so, obtaining your own Operating Authority is a significant step towards becoming an independent trucking company. This blog will guide you through the process of acquiring your DOT operating authority efficiently, in compliance with regulations, and without breaking the bank. Discover how you can achieve this with FleetDrive 360 and why having an operating authority matters.

What is an Operating Authority?

An operating authority, often referred to as trucking authority, is a critical authorization you need to legally operate a commercial motor vehicle as a for-hire motor carrier in interstate commerce or for transporting hazardous materials. This authority is issued by the Federal Motor Carrier Safety Administration (FMCSA) and is an essential requirement for those looking to establish their own trucking company.

Do You Need an Operating Authority?

The need for an operating authority depends on whether you plan to haul freight in the for-hire, interstate sector, particularly for federally regulated cargo or passengers. It’s important to note that, depending on the type of cargo you intend to transport, you may need to apply for various types of operating authority. Additionally, some states may require Intrastate Authority if you are conducting operations exclusively within their borders. Ensuring you apply for the correct operating authority is crucial, as the application process can take up to two months.

The FMCSA provides a helpful chart to determine whether you require an operating authority.

File your operating authority today! Click here to call (470) 598-1501

Operating Authority vs. Motor Carrier Number

It’s essential to differentiate between an operating authority and a motor carrier number (MC number). An operating authority is the legal right granted by the FMCSA to operate a commercial motor vehicle in for-hire interstate commerce or for hauling hazardous materials. On the other hand, an MC number is a unique identifier assigned by the FMCSA to commercial motor vehicles that transport interstate cargo once the operating authority is granted.

Obtaining Your Operating Authority

Getting your own operating authority is a multi-step process. Here’s what you need to consider:

1. Business Factors: Decide on your business name, type, and the type of freight you plan to haul. Consult with a trusted accountant to determine your business structure—options include sole proprietorship, partnership, LLC, or corporation, each with varying levels of liability and tax implications.
2. Proof of Insurance: You’ll need to provide proof of liability insurance to the FMCSA. The minimum requirement is $750,000 for general freight or $1 million for hazardous materials. Insurance premiums vary based on factors such as your driving record, location, and business size.
3. Additional Operating Authority Requirements: Beyond insurance, you’ll need to complete several other steps:
   • BOC-3 Form: Designate a process agent in every state you operate in to receive legal documents.
   • Heavy Highway Vehicle Use Tax (HVUT): Pay this tax if your vehicles weigh at least 55,000 lbs.
   • Unified Carrier Registration (UCR): Register your business with your state; the fee depends on the number of trucks you operate.
   • International Registration Plan (IRP): File for your cab card in your state.
   • International Fuel Tax Agreement (IFTA): Pay a setup fee and ongoing fees based on fuel use and operating state.
   • State Regulations: Be aware of state-specific requirements like weight distance permits in states such as New York, Kentucky, and New Mexico.
   • Drug and Alcohol Testing: Enroll your drivers in a testing program, including pre-employment drug testing.

Looking Ahead: The New Entrant Safety Audit

Once you’ve completed all the necessary steps and obtained your operating authority, you’ll be enrolled in the DOT New Entrant Program. In the first 18 months of your business, you’ll undergo a new entrant safety audit to assess various aspects, including driver qualifications, logs, maintenance programs, accident records, driver qualification files, and drug and alcohol policies.

Obtain Your Operating Authority with FleetDrive 360

Starting your own trucking company with your operating authority is a significant decision that comes with responsibilities. With FleetDrive 360, you can navigate this complex journey quickly, compliantly, and affordably. Don’t let the complexities of the process deter you from achieving your goal of becoming an independent trucking operator. Obtain your operating authority and start your journey toward a successful trucking business today.

File your operating authority today! Click here to call (470) 598-1501