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How to Secure Your Own Trucking Authority

How to Secure Your Own Trucking Authority

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  • GLI Dispatch Services
  • March 10, 2023

How to Secure Your Own Trucking Authority

10 simple and easy steps to Secure Your Trucking Authority

1. Register your Trucking Company

Register your business in the state you plan to operate and decide the business entity you like to create. Many will choose to form an LLC which offers better protection for the owner as compared to being a sole proprietor.

2. Secure your Employer Identification Number (EIN)

If you decide to use and LLC or C corporation, you definitely need an EIN number issued by IRS.

3. Get your USDOT Number

All Trucking companies must register with the USDOT. A DOT number is the company’s ID number that provides all company information, including vehicle type, cargo, safety and compliance.

4. Apply for your MC Number

MC number will give you authority to operate in interstate commerce. Once you’ve filed, you will get your MC number immediately, but it is not active yet.

You’ll have 20 days to complete your BOC-3 and get an insurance policy on your file. Once those are filed with the FMCSA, your MC authority will become active within two to three weeks. About two weeks after that, you will receive your authority certificate in the mail.

It is important to note that you cannot legally drive your truck until you’ve filed your BOC-3 and insurance policy. You will also need to wait until your MC number goes active.

5. File a BOC-3 & get an insurance policy

From there, you have 20 days to complete this step. The FMCSA requires you have a designated process agent in each state that can serve legal paperwork on your behalf – a BOC-3 shows that you do.

You must also have an active insurance policy in place for you to drive your truck and your trucking authority to become active.

6. Pay your HVUT (Heavy Vehicle Use Tax)

You must pay your HVUT before setting up your IRP. The Heavy Vehicle Use Tax is an annual tax assessed on all heavy vehicles operating on public highways.

7. Set up your International Registration Plan (IRP) and get your apportioned plates

If you are operating your trucking company within multiple jurisdictions, you must report all miles driven and pay taxes on them annually. For your IRP, you must register all fleets of vehicles that operate in more than one jurisdiction. Once you have registered and paid the fee, you will receive your apportioned tags.

8. Setup an International Fuel Tax Agreement (IFTA) account

An IFTA agreement is with the lower 48 US states and Canadian provinces to simplify the reporting of fuel use taxes by truck drivers that operate in multiple jurisdictions.You must complete a fuel tax report at the end of each fiscal quarter, including all miles traveled in participating jurisdictions and all fuel purchases made. Once you have set up your IFTA account, you’ll get an IFTA license and two decals for each qualifying vehicle.

9. Complete a Unified Carrier Registration (UCR)

A UCR permit verifies that you have active insurance in the states where you operate. This registration must be renewed every year and you’ll use your MC number and USDOT to apply and the annual fee is based on fleet size.

10. Enroll in a drug and alcohol consortium

The FMCSA and DOT require all motor carriers to have a negative drug test prior to hiring drivers or driving themselves. Learn more about the rules and regulations related to drug and alcohol testing on the FMCSA website.

All supervisors of commercial drivers are required to complete two hours of controlled-substance training, and a designated employee representative (DER) must be named who is authorized to immediately remove employees from duty if they cannot pass a drug or alcohol test.

 

GLI Truck Dispatch Services offers one of the best truck dispatch services to owner operators and carriers across USA. We offer other back-office solutions such as compliance and accounting to carriers in addition to our truck dispatch services to help our carriers succeed in this competitive yet rewarding trucking industry. At GLI, our truck dispatchers don’t just dispatch, they go the extra mile to help build relationships to help carriers grow their business. Its where professionalism meets quality. Visit www.glitruckdispatchservices.com to learn more about our processes and how our method of truck dispatching can help you succeed and grow your business. 

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