The trucking industry plays a vital role in our economy. The domestic US trucking industry employs millions of drivers across the country and is constantly growing.

If you're thinking of starting your own trucking company, you'll need to obtain your own trucking authority.

Don't worry, I'm here to break down the nine things you need to consider to get it done, and hopefully, get on the road sooner than later.

1. What Type of Authority Do I Need?

First things first, determine the type of authority you need. It's like choosing your superhero costume, but instead of a cape, you'll be wearing an MC or FF authority badge. MC is for those who plan to transport goods for others, and FF is for those who plan to arrange for the transportation of goods on behalf of others.

Just remember, MC requires more compliance and safety protocols, so if you're not up for the challenge, get someone else to help you.

 

2. Register Your Business

Next up, register your business with the state where you plan to operate. This involves paperwork and obtaining any necessary licenses or permits. You'll also need to get an EIN from the IRS.

I know, bureaucracy is not the most exciting thing, but don't worry, it'll be worth it in the end.

3. Obtain Insurance

You'll need to get liability insurance and cargo insurance.

Liability insurance covers damages and injuries to third parties, while cargo insurance covers loss or damage to the goods you're transporting.

It's like a safety net for you and your clients, so everyone can sleep soundly at night.

4. Obtain a USDOT Number

Then, you'll need to obtain a USDOT number from the FMCSA. Think of it as your company's social security number.

You'll also need to submit an application with information about your business, insurance coverage, and the type of authority you're seeking.

Just remember, Turnkey Authority can help you with this process, so you can take a break and enjoy a cup of coffee while we handle it.

 

5. Apply for Authority

Next, apply for authority by completing the appropriate application form on the FMCSA website.

Make sure you provide detailed information about your business, the type of authority you're seeking, the commodities you plan to transport, and the states you plan to operate in.

6. Pay the Fees

If you’re doing it on your own, you’ll need to pay the $300 fee for Permanent Authority.  If you’re allowing a setup agency to take care of it, that should be included in your setup fee.

The fee varies depending on the type of authority you're applying for, but hey, it's a small price to pay for the dream, right?

7. Wait For Approval

Now, the waiting game begins.

You'll need to wait for approval from the FMCSA, which can take several weeks or more. But don't worry, they're just making sure you meet all the regulatory requirements, and they'll verify your insurance coverage too.

 

8. The Regulations

Once you're approved, congratulations!

You're now officially ready to hit the road with your own authority!

But wait, there's more!

You'll need to comply with all of the regulations set forth by the FMCSA. That includes maintaining insurance coverage, keeping accurate records, complying with safety regulations, and more.

Make sure you do regular inspections of your equipment, drug and alcohol testing for your drivers, and keeping detailed records of all activities.

Remember, failure to comply can result in fines or even the revocation of your authority.

So, make sure you stay in compliance with these regulations, or else your authority will go down the drain.

9. Market Your Services

Now it’s time to market your services to potential clients and build your business.

This can involve building a website, networking with other businesses, and advertising your services to potential clients.

Invoice Factoring Services

Don’t forget to explore other services that can be a great benefit to the operations of your business. The one thing we hear about being most critical to many carriers is a factoring company.  In order to avoid waiting 30 – 60 days for payment from brokers and shippers, many will capitalize on factoring to get paid right away. 

Always remember to comply with all of the FMCSA's regulations and requirements to maintain your trucking authority.