Trucking authority is a legal document that authorizes a carrier to move products across state lines as a for-hire motor carrier. It’s often referred to as a motor carrier authority or an operating authority. Obtaining permission to operate is a must for anyone looking to establish a trucking business.
This article will explain what trucking authority is, why it’s important, and how to obtain it.
What Is Trucking Authority?
The FMCSA grants trucking authority, which permits carriers to carry products across state lines. Anybody who works as a for-hire motor carrier is required by law to have it. The FMCSA also regulates the safety practices, equipment, and insurance needs of carriers.
Tips on how to find the best trucking authority packages.
Why’s It Necessary?
It’s required because it contributes to the safety of commodities being hauled across state lines. It also guarantees that carriers follow federal laws regarding driver qualifications, hours of service, and truck maintenance. The authority also protects carriers and shippers by mandating them to have a certain level of insurance coverage.
How to Obtain It
Obtaining authority can be a difficult process, but it’s necessary for anyone who wishes to start a trucking company.
Here’s a step-by-step guide on how to obtain it.
Step 1: Determine Your Business Structure
You must first identify your business structure. You can run your business as a sole proprietor, partnership, limited liability company (LLC), or corporation. Each structure has advantages and disadvantages, therefore it’s critical to select the one that best meets your requirements.
Step 2: Obtain a USDOT Number
All carriers that conduct interstate business must obtain a USDOT number. The FMCSA issues this number, which is used to identify carriers during inspections and audits.
How to get DOT numbers.
Step 3: Get Your Motor Carrier Authority
To obtain motor carrier authority, you must submit an application to the FMCSA. You will need to provide information regarding your business, like your business structure, operating authority type, insurance, and safety standards, to complete the application process online.
Step 4: Register for International Registration Plan (IRP) and International Fuel Tax Agreement (IFTA)
If you want to operate across state lines, you must enroll in the International Registration Plan (IRP) and the International Fuel Tax Agreement (IFTA). These programs allow carriers to register and pay taxes in various states.
Step 5: Obtain Insurance
To obtain your authority, you must carry a minimum amount of liability coverage. The amount of insurance necessary is determined by the kind of goods being transported and the distance traveled.
Step 6: Pass a Safety Audit
After obtaining your trucking authority, you must pass a safety audit test. The FMCSA will inspect your vehicles, equipment, safety practices, and insurance to ensure that you’re operating responsibly.
For more information on DOT audit fines.
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