How to Get Your DOT/MC Authority In Trucking & Logistics

Welcome to our Training which explains you Most important Steps How To Obtain you Trucking Authority :

First of all, let's figure out some details

WHAT IS TRUCKING AUTHORITY?

You probably heard about a motor carrier operating authority together with many other terms like trucking authority, MC, DOT authority, MC Number, and USDOT Number. But all of these terms refers to the same thing.

ABOUT OPERATING AUTHORITY

Operating authority is a motor carrier's right to operate a commercial motor vehicle to transport goods or passengers and it's required for most carriers in interstate commerce. The Federal Motor Carrier Safety Administration regulates the trucking industry and grants active operating authority by issuing MC and USDOT Numbers. These numbers serve as unique identifiers for trucking companies and help the FMCSA with conducting inspections, monitoring safety scores, maintaining compliance reviews, etc.

HERE IS A STEP-BY-STEP INSTRUCTION HOW TO OBTAIN OPERATING AUTHORITY

1. CREATE YOUR COMPANY

   You need to form your company, get an EIN number, and other business basics before you start filing paperwork. The prerequisites for your new business will differ depending on your state and city.

2. APPLY TO THE FMCSA FOR AUTHORITY

   You'll use the Unified Registration System, which is a single online registration system that replaces multiple outdated forms. Each sort of authority has a $300 filing fee. It's a lengthy procedure, so be sure you have all of the necessary information before beginning. Remember to check if you require intrastate authority in your own state as well.

3. APPLY FOR INSURANCE

   Obtaining trucking insurance is a significant barrier for new trucking companies to overcome, so do your research. Without proof of insurance, your authority will not be deemed "active authority." Insurance premiums might be extremely costly. To discover the best insurance rates, fill out the applications completely and speak with the insurance firms about your organization and plans.

4. GET THE UCR REGISTRATION

   The Unified Carrier Registration system (UCR) is a funding mechanism that allows states to enforce motor carrier safety requirements. The UCR imposes fees according on the size of the fleet and must be renewed every year.

5. GET THE IRP REGISTRATION

   The International Registration Plan (IRP) is a registration reciprocity agreement between the US, Washington, D.C., and Canadian provinces that allows interstate carriers to pay fees depending on their annual miles in participating jurisdictions.

6. GET THE IFTA REGISTRATION

   Interstate motor carriers must file IFTA (International Gasoline Tax Agreement) taxes on fuel purchases on a quarterly basis through the taxing authority of the carrier's base state.

7. TAX ON THE USE OF HEAVY VEHICLES (HVUT)

   You must file a Heavy Vehicle Use Tax return, or form 2290, with the IRS each year if you possess a vehicle with a gross weight of 55,000 pounds or more. In addition, four states impose additional weight distance charges on hauling inside their borders. You'll also need to complete registrations in Kentucky, New Mexico, New York, and Oregon if you plan to haul routinely through those states.