Trucking Authority

Everything You Need to Know About Trucking Authority

Getting your trucking authority is a crucial step when starting your trucking business and gaining the independence of being an operator. To be an experienced trucker or a newly started trucker, learning about trucking authority is of utmost importance to get moving in the industry and maximise profit. This guide will give you the basics, benefits, and steps to getting your trucking authority.

What Is Trucking Authority?

Trucking authority, sometimes referred to as operating authority, is a legal license issued by the Federal Motor Carrier Safety Administration. Operating authority grants trucking companies or independent operators the opportunity to carry on as commercial for-hire carriers. In other words, it gives you legal permission to haul goods or passengers from one state into another while ensuring your company meets all federal safety and regulatory guidelines.

Without trucking authority, you can't haul goods or passengers legally as a for-hire carrier. That is why it forms one of the most significant steps in establishing your trucking business.

Types of Trucking Authority

There are different kinds of trucking authority, depending on the nature of your business and cargo that you will transport. The main categories include:

Motor Carrier of Property: This authority is needed if you are going to haul general freight, except household goods.
Motor Carrier of Household Goods: If your business is moving household goods, this specialized authority is needed.
Broker Authority: If you want to arrange for the transportation of freight without owning or operating trucks, then broker authority is the right choice.
Passenger Carrier Authority: If your business is transporting passengers for hire, then this authority is needed.

Choosing the correct type of authority depends on your business goals and the services you intend to provide.

Why Is Trucking Authority Important?

Obtaining your trucking authority is much more than a legal necessity; it's a crucial step toward independence and business growth. Here's why it's so important:

Legal Operation: Trucking authority makes sure that your business is in compliance with federal regulations, saving you from fines or even legal issues.
Independence: When you have trucking authority, you are not dependent on another company's authority. This independence allows you to operate your business, set your own rates, and choose the routes you want.
Increased Revenue Potential: Trucking authority lets you work directly with shippers and brokers to get rid of middlemen, earning you more money

To explore these benefits further, visit our Why Trucking Authority Matters page for a deeper dive into the topic.

Steps to Obtain Trucking Authority

Trucking authority may seem like an overly complicated process, but breaking it down into the simple steps helps. Here's a step-by-step guide.

Obtain a USDOT Number: This is mandatory for every trucking business. Your business USDOT number is an identifier that tracks your company's safety performance.
Submit Your FMCSA Authority: Apply for operating authority with the FMCSA's URS (Unified Registration System).
Secure Insurance Coverage: Present evidence of liability and cargo insurance meeting requirements established by FMCSA.
BOC-3 Filing: Name a process agent to serve each state in which the company conducts business. Thus, the legal papers will always find their way to an authority.
Pay the Application Fee: The most common authorities require a fee of 300 dollars, payable with application submission.
Prepare for Compliance Reviews: You should ensure you comply with all federal safety regulations, such as drug and alcohol testing, driver qualification files, and vehicle maintenance programs.

Need help navigating this process? Visit our Step-by-Step Guide to Trucking Authority page for detailed instructions.

Costs of Trucking Authority

The cost of obtaining trucking authority varies depending on your business’s needs and the requirements you must meet. Below is a breakdown of typical expenses:

FMCSA Application Fee: $300, which is non-refundable.
Insurance Premiums: These can range from $5,000 to $15,000 per truck annually, depending on your coverage limits, driving history, and other factors.
Compliance Costs: Additional expenses may include drug and alcohol testing programs, Unified Carrier Registration (UCR) fees, and Heavy Vehicle Use Tax (HVUT).

Understanding these costs upfront can help you plan and budget effectively. For a more comprehensive look at expenses, check out our Complete Cost Analysis of Trucking Authority.