All About Operating Authority, DOT Numbers, and MC Numbers

Getting operating authority is a crucial step in starting a trucking company, but it’s just one part of the process! What’s the first step to getting trucking authority, and how do you do it?

First, let’s address what trucking authority is. Then, we’ll answer some commonly asked questions like how to get operating authority, what’s required to get an MC and DOT Number, and how much it costs to get it. Then, we’ll show you how the Apex Startup Program makes the process of getting authority and starting a trucking company easy.

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What is Trucking Authority?

Trucking authority refers to the official permission required to operate a trucking business and receive payment for transporting goods. When you apply for trucking authority, the government issues you two important numbers: a DOT Number, which is used to monitor your safety, and an MC Number, which indicates that you are authorized to haul freight across state lines. Without these numbers, you cannot legally operate as a for-hire trucking company in the United States.

Like many terms in the trucking industry, trucking authority is used interchangeably with many others, like motor carrier authority and operating authority. Most of the time, these terms refer to the same thing.

Who Needs Operating Authority?

Operating authority is required for most carriers, trucking companies that transport federally regulated commodities or freight in interstate commerce. The Federal Motor Carrier Safety Administration (FMCSA) is the government agency that regulates the trucking industry and grants active operating authority by issuing Motor Carrier (MC) and USDOT Numbers.

What are MC and USDOT Numbers?

MC and USDOT Numbers serve as unique identifiers for your trucking business and help the FMCSA conduct inspections, monitor your safety scores, maintain compliance reviews, and more. If you’re wondering who needs a DOT Number or an MC Number, the FMCSA website is where you will go to find out.

How to Get Operating Authority

1. Form Your Company

Before you start filing paperwork to get authority, you need to form your company, get your EIN number, and other business basics. Your new business requirements will vary based on your state and city.

2. Apply for Authority with the FMCSA

To apply for authority, you’ll use the Unified Registration System, which replaced several older forms, creating a single online registration system. The filing fee is $300 for each type of authority. It’s a long process, and you need to make sure you have all the information you need to get started. And don’t forget to verify if you need intrastate authority in your home state, too!

3. Get Insurance

Getting trucking insurance is often a big hurdle to get over for new trucking companies, so take your time to research this. Your authority will not be considered “active authority” without proof of insurance. Insurance rates can be very high. Fill out the applications in detail and talk to the insurance companies about your company and plans to find the best insurance rates possible.

4. Designate a Process Agent

As part of the requirements for obtaining your operating authority, you must designate a process agent. This person will receive legal documents on behalf of your trucking business, ensuring that you comply with regulations and have someone to represent you in case of legal issues.

5. Register for UCR

UCR is the Unified Carrier Registration system, this is to fund states to enforce motor carrier safety laws. Fees due under the UCR are based on fleet size and must be renewed annually.

6. Register for IRP

The International Registration Plan (IRP) is a registration reciprocity agreement among them United States, Washington D.C., and Canadian Provinces providing for payment of fees based on an interstate carrier’s annual mileage in participating jurisdictions.

7. Register for IFTA

In relation to fuel purchases, interstate motor carriers are required to file IFTA (International Fuel Tax Agreement) taxes on a quarterly basis through the taxing authority of the carrier’s base state.

8. Heavy Vehicle Use Tax (HVUT)

If you own a vehicle with a gross weight of 55,000 pounds or more, you are required to file a Heavy Vehicle Use Tax return, or form 2290, with the IRS each year. In addition, there are four states that have additional weight distance taxes to haul within them. If you plan to haul regularly through Kentucky, New Mexico, New York, or Oregon, you’ll want to complete those registrations as well.

2. Apply for Authority with the FMCSA

You’ll use the Unified Registration System, which replaced several older forms, creating a single online registration system. The filing fee is $300 for each type of authority. It’s a long process, and you need to make sure you have all the information you need to get started. Don’t forget to verify if you need intrastate authority in your home state, too!

4. Designate a Process Agent

6. Register for IRP

7. Register for IFTA

In relation to fuel purchases, interstate motor carriers are required to file IFTA (International Fuel Tax Agreement) taxes on a quarterly basis through the taxing authority the carrier’s base state.

8. Heavy Vehicle Use Tax (HVUT)

Sounds like a lot of paperwork, right? We can help. The Apex Startup Program has helped thousands of carriers form their companies, get active authority, and start hauling freight. We customize a startup and authority package depending on the filings and registrations you actually need. Plus, we have extra resources and helpful information for you to get started on the right foot.

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Start Your Own Trucking Company

Download our free guide to help you understand all the requirements for getting your MC and DOT Numbers and starting your trucking company.

In it, we talk about the FMCSA, licenses, registrations, fees, taxes, business expenses, and more.

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How Much Does it Cost to Get Your
Own Authority?

The FMCSA charges $300 to file the paperwork and get your authority issued. This fee includes your MC and DOT Numbers. Additionally, if you want to reactivate your authority, that costs $80, and if you need to change the name on your paperwork, that costs $14.

If you want active authority to be able to haul freight, you’ll have to spend significantly more to meet all the requirements. We’ve put together some estimates for what it costs to start a trucking company including other filing and registration fees, insurance down payments, and taxes.

Types of Operating Authority

In the Unified Registration System, where you apply for your MC and DOT Numbers, there are several different types of operating authority you can choose. he three main types of operating authority are motor carrier, broker, and freight forwarders. Depending on your type of operation or the cargo you carry, you might need to have multiple operating authorities. If you apply for the wrong one by mistake, the FMCSA does not refund fees, and it isn’t easy to fix those mistakes.

Most applicants will register with the Unified Registration System (URS) online to obtain operating authority. However, the process of applying for authority from the FMCSA is not straightforward and depends on whether you’ve applied before or not. That’s just another reason why the Apex Startup Program is here to help you!

Ready to Get Your Authority?

As you can see, getting trucking authority on your own isn’t always as easy as just applying to get an MC number or DOT Number. The Apex Startup Program experts know exactly what to do and can simplify the entire process for you! We also help our clients with ongoing requirements, authority updates, and reminders for important deadlines.

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We’ve helped thousands of people start their trucking companies and begin hauling freight successfully. Let us help you today!

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About Trucking Authority