How to Get My Own Authority in Trucking
If you’re a truck driver looking to take your career to the next level and become an independent owner-operator, getting your own authority is the key. Having your own authority in trucking means that you have the legal permission to operate as a for-hire carrier and transport goods across state lines. Here are the steps you need to follow to obtain your own authority:
1. Business Formation: Decide on a business structure, such as a sole proprietorship, partnership, or LLC, and register your business with the appropriate state agency.
2. Obtain a USDOT Number: Apply for a USDOT number through the Federal Motor Carrier Safety Administration (FMCSA). This unique identifier is required for all commercial vehicles involved in interstate commerce.
3. Obtain Insurance: Obtain the necessary insurance coverage, including liability and cargo insurance, to protect your business and comply with FMCSA regulations.
4. Get a Motor Carrier (MC) Number: Apply for an MC number through the FMCSA. This number identifies your business as a for-hire carrier.
5. Complete the Unified Carrier Registration (UCR): Register your business and pay the annual UCR fee, which is required for all carriers operating in interstate commerce.
6. Safety Compliance: Ensure that your vehicles and drivers comply with all safety regulations, including regular inspections and proper maintenance.
7. BOC-3 Filing: File a BOC-3 form to designate a process agent who will be responsible for receiving legal documents on behalf of your business.
Frequently Asked Questions (FAQs):
1. How much does it cost to get my own authority in trucking?
The cost varies but can range from $1,000 to $10,000, including registration fees, insurance costs, and other expenses.
2. How long does it take to get my own authority?
The process typically takes around 3-4 weeks, but it may vary depending on the workload of the FMCSA.
3. Do I need to have a truck to get my own authority?
Yes, you need to own or lease at least one commercial vehicle to obtain your own authority.
4. Can I operate as a sole proprietor with my own authority?
Yes, you can operate as a sole proprietor, but keep in mind the potential liability risks associated with this business structure.
5. What are the insurance requirements for obtaining my own authority?
You need to have liability insurance with a minimum coverage of $750,000 and cargo insurance with specific coverage limits.
6. Can I apply for my own authority if I have previous violations on my driving record?
Previous violations may affect your chances of obtaining your own authority, but it’s not necessarily disqualifying. Each case is evaluated individually.
7. Do I need a CDL to get my own authority?
Yes, you need a Commercial Driver’s License (CDL) to operate a commercial vehicle and obtain your own authority.
Obtaining your own authority in trucking can be a complex process, but it offers significant benefits in terms of independence and potential earnings. By following the steps outlined above and ensuring compliance with all regulations, you’ll be on your way to becoming a successful independent owner-operator.