The OP-1(P) is designated for Motor Carrier of Passengers. Before beginning interstate operations in the United States (U.S.), all authorized for-hire Motor Carriers of non-exempt property and passengers, Brokers, and Freight Forwarders based in the U.S. or Canada must obtain Operating Authority by submitting the appropriate form.
A more simple way to say it is that it allows you to transport or arrange for the transportation of passengers or property for compensation.
It is important to understand if you really need this form in order to operate. This is why it is important to understand the difference between a motor carrier and a broker, along with their duties. A motor carrier transports passengers or property for compensation. A broker is a person or an entity which arranges for the transportation of property by a motor carrier for compensation. Furthermore, a broker does not transport the property and does not assume responsibility for the property. All authorized for-hire Motor Carriers of non-exempt property and passengers, Brokers, and Freight Forwarders based in the U.S. or Canada must also obtain Operating Authority from the FMCSA.
Even though, they must obtain authority in order to operate, each one has their own form. This for is for Motor Carrier of passengers.