How to Get Your Operating Authority
If you’re an owner-operator who’s leased on with a carrier, you’ve considered the idea of getting your own authority. While there’s a lot less financial risk and operational requirements when you’re leased on, many drivers want the chance to earn more money and run independently.
There are a lot of upfront costs associated with getting your operating authority, not to mention the maze of regulations. Our team can help you navigate this maze with ease while you are on your way to entrepreneurship.
What is Operating Authority?
Any carrier doing interstate commerce is required to have a US DOT number, while an MC number issued by the FMCSA allows you to transport regulated commodities. The FMCSA’s new Unified Registration System is still on target to ultimately eliminate the MC number.
Before You File
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Business name – There’s a fee to change this.
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Business type – Get with your accountant to decide how your business should be organized: sole proprietorship, partnership, LLC, or corporation. Each comes with a different level of liability, and the taxes for each vary based on the state you’re in. We can assist with setting this up for you for (Only pay state fees)
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Freight – What are you going to haul? What is your target freight sector? Will you operate in all 48 lowers states?
Proof of Insurance
Before the FMCSA approves your authority, you’ll need to submit proof of liability insurance. This is one of the biggest obstacles for owner-operators looking into getting their own authority, since you’re now taking on the liability costs that the carrier you were leased on with was paying for. All carriers are required to have a minimum of $1,000,000 in liability insurance for general freight or $1 million for hazmat, and there has been some talk of those numbers going up.
Insurance premiums could cost you anywhere from $16,000 to $26,000 per year per truck on average. The price depends on your driving record, the state you live in, your credit history and the states you plan to do business in. New carriers are often charged a higher premium due to the associated risk involved, with the price typically dropping once the business is more firmly established a couple years into the venture.
Other Requirements
But wait, there’s more:
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Process agents – FMCSA requires you to have a process agent in every state you do business in. This is the entity that would get served papers if you had legal trouble in a state other than the one your business is based in. You file this with Form BOC-3. We can easily handle this on your behalf.
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Heavy Highway Vehicle Use Tax (HVUT) – Any rig weighing at least 55,000 lbs has to pay HVUT. This is filed with IRS Form 2290.
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Unified Carrier Registration (UCR) – This is filed with the state you’re based in, and the fee is based on the number of trucks in your fleet (power only).
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International Registration Plan (IRP) – Also known as your apportioned base plate or cab card, which is filed with your state. Beginning in 2015, the IRP began full reciprocity, which means all carriers will be apportioned for all of the Lower 48 states and the 10 Canadian provinces.
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IFTA – There’s a nominal fee for getting set up, based on your state.
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Other state regulations – Some states require weight distance permits when traveling through them (NY, NM, and KY). Oregon requires a permit and a bond. Some states also require intrastate authority (TX and CA for instance).
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Drug and alcohol testing – Your new company must enroll in a drug and alcohol testing program, and anyone in the company holding a CDL must pass a screening. You also need to register with the FMCSA Drug and Alcohol Clearinghouse.
DOT New Entrant Audit
Once you get through these, you’ll be enrolled in the DOT New Entrant Program. Within your first 18 months of business, you’ll receive an audit that will focus on:
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Driver qualifications
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Driver logs
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Maintenance programs
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Accident register
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Driver qualification files
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Drug and alcohol policies
New Trucking Company Startup.
Just Freight Management offers quick and reliable service to customers securing Motor Carrier Operating authority. Increase your earnings today and gain the freedom you have been looking for as a Professional.
Our complete package includes:
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MC number for Broker or Operating Authority
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Your DOT Number or MCS 15O Update
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BOC-3, Process Agent Filing
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Unified Carrier Registration (UCR)
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For additional fees we can help you obtain your KYU, NY HUT and SCAC.
Just Freight Management wants to make obtaining your FMCSA DOT authority and starting a new business as simple as possible. Our services offers everything a new carrier needs to not only start a new company but keep the company compliant as well.
Fix My Authority
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Sometimes you need to fix your authority. Just Freight Management makes the process smooth and easy. Select the solution below that fits your needs.
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Reinstate your authority - $160.00
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Name change - $160
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Mc address change - $75
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Authority undismissal $75
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Authority cancelation - $75
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Biennial update - $75
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Usdot number deactivation - $75
Permits
Three states require additional weight distance permits. If you pass thru or deliver in Kentucky, New York or New Mexico, Just Freight Management offers quick and reliable service to customers securing these additional permits.
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Order The Package That Will Meet Your Needs
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Kentucky KYU - $75
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New York HUT (Highway Use Tax) - $99
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New Mexico Weight Distance Tax Permit - $75
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COMBO PACK (NY HUT,NM WDT, KYU)- $200
