At times, the prospect of getting your authority might be downright frightening. In the age of information overload, it may be challenging to stay on top of all you need to do. To get your authority you need start-up money, attention to detail, and a determination to do it.
Here are the most commonly asked questions about getting your trucking authority to help you get started if you’re stuck.
GETTING TRUCKING AUTHORITY: WHAT YOU NEED TO KNOW
To complete your application for a trucking authorization with the Federal Motor Carriers Safety Administration, you must complete the processes outlined below.
1. Start By Registering Your Company With The Appropriate Authorities
You must first register your company to get your trucking authorization. First, you must form a legal company, such as a sole proprietorship, Limited Liability Company, or a corporation, to accomplish this. Following your decision, you must complete the necessary documentation and acquire a certificate.
2. Obtain An Employer Identification Number
A Federal Employer Identification Number is required whether your company is organized as an LLC or a corporation (EIN).
3. Carrier Identification Number
Drivers who use this number may drive over state boundaries without being arrested. The FMCSA is in charge of allocating license plates like this one.
4. USDOT Unique Identifier
The United States Department of Transportation issues a unique tracking number (USDOT) to trace a trucking firm. This number gives you access to all of your company’s cars, cargo, and regulatory information. Every two years, or if there are any changes to your company’s details, you must renew the USDOT number.
5. Process Agents From The Boc
When necessary, BOC 3 process agents may receive and return legal papers on behalf of their customers stationed in separate states. Because any changes to your motor carrier number will impact your BOC3, getting a new one every time you modify is the only viable option.
6. Protection
An insured trucking firm will have general liability as well as cargo insurance. Liability insurance of $1,000,000 is required by law, as is a cargo insurance coverage of $1,000,000. Your authorization application will be rejected if you do not have insurance within 60 days after applying.
7. The International Federation Of Trade Associations (Ifta)
Trucks weighing more than 26,000 pounds must obtain the International Fuel Tax Agreement (IFTA) to operate interstate for hire. All gasoline purchases and miles in each state must be tracked to get this document.
8. Irp (Intelligence Review Process)
To register and operate your vehicle in every state and province in the United States, you must purchase the International Registration Plan (IRP), an annual fee based on your mileage. The price of insurance ranges from $1,000 to $3,000.
9. Ucra (Uniform Congressional Research Agency)
Carrier registration costs are set per firm depending on the number of vehicles they operate and are governed under the Unified Carrier Registration Agreement (UCRA). If you just have one or two trucks, the cost is $76; if you have more, the price rises to $227.
10. Scac – The Southern California Air Quality Control Commission
Military, federal, international, and intermodal freight are all identified by Standard Carrier Alpha Codes (SCACs).
Any truck or trailer weighing more than 55,000 pounds must pay the heavy highway vehicle usage tax. The tax is $100, with an additional $22 charge for every 1000 pounds beyond that amount.
11. The Use Of Illicit Drugs And Alcohol
All of your drivers must be examined for drugs and alcohol before they are allowed to drive for your firm.
TRUCKING AUTHORITY: HOW MUCH DOES IT COST?
According to Haulhound, the following are the required fees incurred while applying for a trucking authorization.
- Depending on the state, registration as a sole proprietor or LLC might cost anywhere from $250 to $800 per year.
- the cost of signing up with a single carrier is $76,
- Agent designation: $35 for a BOC-3 form and $100 each year to your selected agent are the costs involved in the process.
- The FMCSA charges a cost of $300 for permanent permission.
- Depending on how many states you want to race in, the registration price for international runners might range from $500 to $3,000.
- The cost of a license plate ranges from $275 to $1,000 every year, depending on the state.
- Tax on high-use vehicles (IRS form 2290): varies by state from $100 to $550.
- Insurance costs may range from $8,000 to $16,000 per year, but they will go down over time if your firm is solid.
- Additional licenses from the state: 500 dollars
FINAL VERDICT
A trucking authorization in the United States is expected to cost between $5,000 and $12,000 in total. Even while the expenses and paperwork may seem overwhelming now, once your firm gets back on track, you’ll be glad you took the plunge and become self-employed.
