Operating Authority is a motor carrier’s right to operate a commercial motor vehicle to transport goods/passengers for – hire. It is a business license for a motor carrier or broker. As a business owner, you need to comply with all federal and state regulations to run your business legally. Also, you need to comply with the financial responsibility (e.g., insurance), process agent designations, and MCS-150 completion (for USDOT Number).
If you operate without authority, you risk damaging your own business. Carriers operating without an authority or beyond the scope of their authority can be put Out of Service. A company operating without authority is also subject to fines.
Here are the operating authority types:
You are required to register as a Household Goods Broker if you contribute any of the following:
– Estimates (binding and non-binding)
– Packing and unpacking items at personal residences
– Loading and unloading at personal residences
– Motor Passenger Carrier
– Non – North America – Domiciled Motor Carrier
– Freight Forwarder (FF)
– Mexico-based Carrier for Motor Carrier Authority to Operate beyond US Municipalities and Commercial Zones on the US-Mexico Border (MX)
– Mexican Certificate of Registration for Foreign Motor Carriers and Foreign Motor Private Carriers
The USDOT Number is a unique identifier when collecting and monitoring a company’s safety information acquired during compliance reviews, audits, inspections and crash investigations. The USDOT Number is a unique number for your business used to access your company’s safety information. Also, commercial, intrastate and unsafe materials carriers who haul types and quantities requiring a safety permit, must register for a USDOT Number.
There are two options for filing the necessary forms to obtain a USDOT Number:
The MCS-150, Motor Carrier Identification Report asks for specific information about your motor carrier operation. The information you list on your MCS-150 also provides the Federal Motor Carrier Safety Administration (FMCSA) with the details of your operation.
Need a help with filling the documents? DOT Operating Authority’s team is ready to do all the paperwork for you. Give us a call at 1 – 888 – NOW – GETDOT.
You are required to have a USDOT Number if you have a vehicle that:
To apply for a USDOT Number, your company must be involved in transportation, traffic or trade between states or:
We have a free quote that will help you get in touch with DOT Operating Authority agency. Just fill the quote and our agents will do the paperwork of getting a USDOT Number at our earliest convenience. You can also contact us by calling at (855) – 327 – 8176.
Sometimes, in addition to a USDOT Number, the Federal Motor Carrier Safety Administration (FMCSA) requires that a trucking company has an MC Number, which is a type of operating authority as well.
You need to have an MC Number if your company:
There are several types of FMCSA authority, such as MC, MX and FF. Possibly, you are going to need more than one operating authority to be able to run your business legally, depending on what kind of operations you run and what cargo you hold.
If you are a new applicant and do not have a USDOT Number yet, you will be registered through Unified Registration System (URS). In that case, you will need to wait for 20 – 25 business days to get your operating authority. If you are already registered and have a USDOT Number just want to add operating authority, the process takes longer – up to 60 business days.
With DOT Operating Authority it will be simple for you to comply with the FMCSA regulations in every way. Our agents will always provide you with updates and all the information you need. Give us a call at 1 – 888 – NOW – GETDOT or (855) 327-8176.
This is another type of operating authority that is required for Mexico – domiciled motor carriers. If you are crossing the U.S. border, it is a must to have a valid FMCSA authorized MX Number and a FMCSA Certificate of Registration for commercial – zone operations. The time it takes to obtain an MX Number differs, depending on the application submitted and the means by which the application is submitted.
If you are a motor carrier with a home base in California and operate solely within the state borders, legally you do not need to have a USDOT Number legally. However, if you plan on operating interstate, getting a CA DOT number becomes a requirement.
It does not matter what your home base state is, DOT requirements stay the same. That means that you are going to need a DOT number if:
When you are starting your trucking business, it might be confusing and take a lot of time. But do not worry – DOT Operating Authority will do all the paperwork for you. Call us at (888) NOW – GETDOT or (877) 702 – 9746.
Freight Forwarder is a company that is specialized in managing storage and shipping of merchandise. It usually ships under its own bills of loading and its agents or associates at the destination provides document delivery. Basically, a freight forwarder is a company that manages the importing and exporting of goods. The answer to the question about who needs an FF Number is simple. If you are a freight forwarder then you need an FF Number. You cannot operate without it.
Unified Carrier Registration is a base – state program that replaces the Single Registration System. Companies (SSRS) and individuals that operate business motor vehicles interstate are required to register their businesses. The registration should be in the participating state. An annual fee is required as well.
All the registered members must pay their UCR fee within in the state they inhabit primarily. However, some states are not taking part in the program. The following states: Arizona, Florida, Hawaii, Maryland, Nevada, New Jersey, Oregon, Vermont, Wyoming and D.C. If you live in a state that does not take part, it is a must to pay the UCR fee in a neighboring participating state. If you do not pay your UCR fee, it will damage your business.
You should register under International Registration Plan if:
A carrier or other regulated entity can change their name or address, or other details in their record, they should update their US DOT and operating authority record with FMCSA in a timely manner. Any detail changes must be updated such as an addition of a truck or tractor. In addition, FMCSA takes all entities under its jurisdiction to update their information every two years.
When the time to update comes, you do not want to ignore it or put it off. Failure to update the MCS-150 could result in a $1,000 per day fine for every day it is not renewed, and the fine covers up to $10,000.
|You need to file by last day of:||If your USDOT number ends with:|
There is much confusion sometimes regarding the renewal of your registration. If you need to request a reinstating of motor carrier operating authority, you can find help here, at DOT Operating Authority. The exception for this is if you are a passenger carrier that has been put out – of – service (OOS) for being an “imminent hazard”, this can also occur due to a final unsatisfactory safety rating (“UNSAT/UNFIT”). In this case, you cannot reinstate your registration; it is a must that you re-apply for operating authority.
Please note: before you request a reinstatement, it is mandatory to have your BOC-3 form. Visit our insurance requirements page to get more information.
Many small details and errors can conclude in a filing failure. This can happen due to misstatements, name issues or omission. At DOT Operating Authority you can trust your documents to fill in. Our team will help with all 50 states corporation filling and make your paperwork as it needs to be.
Every state has a different set of laws and regulations in place. In most cases, no two states are the same. Due to that, you must get familiar with the set of rules present when dealing with each state’s Corp Filing. To find out what you need to do to form a corporation in your state, choose your state from here.
Corporations differ from other kinds of business entities. A corporation is an independent legal entity, meaning it is separate from its owners, managers and other people who control it. A limited liability company (LLC) is a legal structure whereby the members of the company cannot be held personally liable for the company’s debts. Limited liability companies are, essentially, hybrid entities that merge the characteristics of a corporation and a partnership or a sole proprietorship. While the limited liability feature is like that of a corporation, the availability of flow – through taxation to the members of an LLC is a feature of partnerships.
A C Corporation is a business entity, incomes of which are taxed separately from its owners. The owners are shareholders who choose a board of directors for managing the company. They have limited liability and are not personally liable for their business debts. They also cannot be sued for corporation’s misdeeds.
Highway Use Tax, also called heavy vehicle use tax, is an annual fee you should pay if you operate a vehicle with a taxable gross weight of over 55,000 pounds on public highways.
You can claim the exempt status of your vehicle if it is:
Your IFTA tax return must have a postmark before or on the due date when sending it. If the due date falls on a Saturday, Sunday, or legal holiday, the next business day is the final filing date. If you do not receive your return at least 14 days before the due date, call for a replacement.
Tax Return Reporting Quarters
If you do not file a quarterly tax return, pay the tax you owe or file your return by the due date, you may be subject to penalty and interest charges. The penalty is $50, or ten percent of the total net tax due with your return, whichever is more.
Meeting all the insurance requirements is the main goal in every business, be you a motor carrier or a broker. The Federal Motor Carrier Safety Administration will only issue an authority after the proper insurance forms have been submitted.
There are two main types of physical damage coverage available on an insurance policy:
Each type only pays for specific causes of damage to your vehicle, and both can be purchased separately. Adding or removing either of these types of coverage could result in increasing or reducing your insurance rates. In conclusion, the more coverage you have, the more your insurance costs.