How to Obtain Your Own Trucking Authority
The Federal Motor Carrier Safety Administration (FMCSA) and the Surface Transportation Board (STB) are responsible for governing the surface transportation industry. The STB is responsible for overseeing the railroad industry. To operate a business as a trucking company, a freight broker or a freight forwarder, or as any combination of the three business types, you'll need to obtain an operating authority. The operating authority is required to legally conduct business in the transportation industry.
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Instructions
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Create a business plan and determine what the operational goals and company missions are to establish which operating authorities are going to be needed. If your company is going to provide both brokerage and motor carrier services, you'll need a separate authority for each. Operating authority is required for motor carriers, freight brokers and freight forwarders. If your company is going to operate any combination of these services, you'll need an operating authority for each one.
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File an application package with the FMCSA for the appropriate authority and pay the required fees. New entrants seeking to operate as a motor carrier in the United States are required to file a complete package and undergo a safety audit and maintain acceptable performance for the first 18 months of operating before receiving a permanent registration.
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Complete required state registration in the state that your company is based. If you open a business as a motor carrier, your company will be responsible for adhering to the regulations for each state your trucks operate in. Contact the departments of transportation in your state of residence or any others in which you will operate for specific requirements.
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Purchase the required insurance for each vehicle your company will operate.
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Maintain adequate roadside safety performance control and complete the FMCSA's New Entrant Safety Assurance Program to obtain your permanent registration and operating authority.
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Maintain required reports and records for your business. These records will be needed for tax purposes as well as in preparation for potential future FMCSA audits. Maintenance and safety records are required on each vehicle. All drivers are required to meet FMCSA guidelines for pre-employment drug screening, DOT physicals, commercial driver's license and employment history.
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Tips & Warnings
Carefully consider what type of business operation your company will establish and ensure all applications are completed and submitted properly.
Operating a business in the transportation industry can be very expensive, so consider your options carefully before committing.
References
Resources
- Photo Credit line of trucks 1 image by Aaron Kohr from Fotolia.com
