It takes
approximately 5 to 7 weeks to complete your authority process from start
to finish. There are 2 main steps to completing your authority process:
federal and state. Following is a breakdown of the pieces for each step
and an explanation of what they are:
Federal Step – Takes the 1st 16 Business Days to Complete
MC
Number
– Issued by the Federal Motor Carrier Safety Administration
(FMCSA), the Motor Carrier (MC) Number is what constitutes authority to
cross state lines for hire as a motor carrier. All companies
transporting freight for hire are required to obtain an MC Number.
USDOT Number
– Issued by the United States Department of
Transportation (USDOT), the USDOT Number is the main tracking number for
your trucking company registering the number of trucks you have, number
of drivers you have, and the safety rating of your company. A USDOT
NUMBER DOES NOT CONSTITUTE AUTHORITY.
BOC 3 Process Agents
–
Process agents are people designated in each state that can accept legal
documents on your behalf and then return them to you in your home state.
BOC 3 Process agents are a requirement to obtaining federal authority.
Insurance
– A carrier must obtain Liability and Cargo insurance.
It is recommended that you obtain a One Million Dollar Liability policy
and a $100,000 Cargo policy. You will need to obtain insurance within
the first two (2) weeks after the MC number is filed to avoid any delays
in your authority processing. If you fail to get insurance on file
within the first 60 days then your authority application will be
dismissed. If you do not obtain insurance within that year’s time, you
will have to start the authority process over again and repay all
applicable fees.
We
can provide access to quality insurance through TransInsurers to help
you avoid a dismissed authority application.
State
Step –Takes approximately 2 to 3 weeks AFTER FEDERAL STEP IS COMPETE.
IFTA
– The International Fuel Tax Agreement (IFTA) is for trucks
with a GVW over 26,000 lbs operating interstate for-hire. All 48 states
and the Provinces of Canada participate in the IFTA program. Once
registered there will be quarterly tax filings due. You are required to
keep track of the mileage traveled in each state and all of your fuel
purchases. Some states charge a small one time registration fee to get
started but usually it is free.
IRP
– The International
Registration Plan (IRP) is for trucks with a GVW over 26,000 lbs
operating interstate for-hire. All 48 states and the Provinces of Canada
participate in the IRP Program. The IRP covers the apportioned tags for
the truck. There is a yearly fee to register to operate your truck in
each state or province. The cost is dependent on the miles you run in
each state or province for the year. The average cost ranges from $1200
to $1600.
Simple Permits:
NY, NM, KY, & OR – These states
require an extra permit to operate within their borders. Once registered
there will be tax filings due based on the miles traveled in each of
these states.
o NY
charges a $15 per truck registration fee and then requires quarterly
reporting of mileage.
o NM charges a $2 per truck registration fee
and then requires quarterly reporting of mileage.
o KY does not
charge a registration fee, but requires quarterly reporting of mileage.
o OR charges a $2000 cash deposit or $2000 security bond to register.
The bond or cash will be returned if the carrier stays compliant for the
initial 24 months. After registering the carrier is required to file
monthly mileage reports.
