Getting trucking authority is the step that gives a boost to your trucking career. If you have worked as a trucker for a long time and now planning to start your own trucking company, the most important thing that you need is trucking authority.
Trucking authority also known as operating authority and issued by Federal Motor Carrier Safety Administration (FMCSA). It is issued in the form of a Motor Carrier or MC number.
Having the trucking authority means you are allowed by the government to not only earn by transporting the cargo but you can also establish a trucking company and start transporting cargo with multiple trucks.
Trucking authority gives you freedom of work and independence. It will be up to you that how will you expand the trucking company to boost your earnings. You will be allowed to hire truck drivers and will be responsible to arrange and negotiate loads for them.
If you are planning to start a trucking company, it doesn’t mean that you will be required to have just one trucking authority. There are multiple types of trucking authorities for different types of cargo.
You will decide how many types of cargo your trucking company will be transporting and will apply for relevant trucking authorities. Also, if you will be transporting cargo in multiple states, you may be required by different states to get specific trucking authority as per their regulations.
It is not a simple process to get your trucking authority as you need to follow multiple steps. A lot of things happen before, during the process and after you get the trucking authority. Let’s have a look at them.
These steps may differ in different states, however, you will be required to do certain things before applying for a trucking authority.
1- What Type of Authority Do You Need?
It is completely based on the type of cargo you will be moving. If you will be transporting multiple types of cargo, see what are the relevant authorities you need. You may also require specific authorities when moving in certain states.
2- Decide Name of your Business
Some states will require you to apply for the authority with an assumed name. You will be filling your business with your base state through the secretary of state. It is always advised to check the official website.
3- Structure of your Trucking Company
Before filling for trucking authority, you have to decide the most suitable business structure like Limited Liability Company (LLC), C Corporation, S Corporation, Partnership, or Sole Proprietorship.
4- Apply for EIN
Get your Employer Identification Number beforehand as you will need this for taxation matters of your business.
5- Get Approval for Insurance
You must check in advance if you will get the approval for the insurance to protect your business from losses due to accidents.
6- Get Motor Carrier (MC) Number
MC number is very important here as FMCSA will issue the trucking authority in the form of an MC number.
Once you have completed all the above requirements, you can apply for the trucking authority.
Photo Credit: Matthew Bennet (Unsplash) While many of us look forward to retiring in a… Read More
If you have a hidden disability and need to travel or want to travel for… Read More
Technology is making life easy for many people around the world. A few years ago,… Read More