All Trucking Companies Need a Motor Carrier Authority

With so much conflicting information out there regarding applying for your Motor Carrier Authority, it can be frightening, stressful, and perplexing. As a result, it can be difficult to keep track of all the necessary tasks. Establishing a trucking company, a USDOT Number, commitment, attention to detail, and supplying all relevant documentation is also required to obtain authority. Continue reading to see why authority is essential for every trucking company.

What Does Motor Carrier Authority Mean?

In order to operate as a heavy haul trucking company and be compensated for it, you need to have your carrier authority from the government. In order to operate legally, a Motor Carrier Number (MCN) must be provided to you by the Federal Motor Carrier Safety Administration (FMCSA). With a Motor Carrier Permit, you can choose the type of cargo you want to transport and plan your timetable and route accordingly. As a result, you will be able to run your trucking business as you see fit.

Some commercial vehicles may require numerous approvals to cover a variety of freight, depending on the sort of freight they are carrying. The interstate authority may also be required in some states if you want to transport freight within their borders. Since your firm requires a Motor Carrier Authority, you’ll need to get one. 

Motor Carrier Authority Benefits

It Is Profitable

When you’ve worked as a truck driver for a long period of time, it’s normal to assume that you have some degree of control over your work environment. A wide range of employment options is available in the trucking sector. It also allows you unlimited freedom, and if you’re running your business effectively, it may also be quite profitable.

Total Control Is At Your Discretion

There are many obligations and duties that come along with holding the Motor Carrier Permit, but it allows you to hire your own truck drivers. Trucks and drivers can be added to your fleet over time. Finding and negotiating loads are also possible. 

Obtaining a Motor Carrier Authorization Requires the Following: 

Form Your Own Business Character 

If you want to start your own trucking company you must follow the same rules as any other business, and you must have a structure in place. It’s challenging because there are so many options for forming a corporate entity. It may be tough to choose which sort of corporate structure is best for your company.

Ask For Authorization

To apply for a commercial driver’s licence, visit the FMCSA website and fill out all the required forms. These include your Vehicle Identification Number (VIN), registration information, the weight of the vehicle and more.

It takes the FMCSA ten working days after you file your application before anyone can challenge your authority. Proof of insurance and a BOC-3 form will be required once this is over. In which a business in each of the 50 states receives and forwards your legal documents on your behalf.

In order to get your USDOT Number, you must submit a Motor Carrier Identification Report Form and a Safety Certification Application. If you operate a commercial vehicle on the interstate, this is critical. If the FMCSA approves your Motor Carrier Authority, they will issue you a letter.

What to Do Once You’ve Been Granted Authority

It’s an exhilarating and life-changing experience to become your own boss. For many people, the American ideal is to own their own business and achieve financial independence. It’s merely the beginning of an amazing journey when you get your MC number. You now have the opportunity to reap the rewards of working for yourself. Following the receipt of your operating authority, you can expect the following:

 ·         You’re not working to make someone else rich; you’re working to develop your own business.

·         You can choose your own timetable so that you have time to relax at home.

·         Using less gas equals more money in your wallet as a result of more efficient driving.

·         You can rest assured that your truck is safe and in peak operational shape since you own it.

·         The ability to manage expenditures, plan loads, and generate revenue can all be achieved with proper record-keeping.

To get your IFTA sticker, you need to be registered with the IFTA. If you need help with IFTA reporting, make sure you purchase a TMS package. The major reason you wanted to be an independent owner/operator in the first place was to avoid penalties, fines, and downtime, and trucking software helps you achieve just that.

Heron Nelson

Heron is a business blogger with a focus on personal finance and wealth management. With over 7 years of experience writing about financial topics, Heron has established herself as a trusted voice in the personal finance space. She has a deep understanding of financial concepts and strategies, and is able to explain them in a relatable and actionable way for her readers.