Acquiring a trucking authority is an essential step in starting your trucking business if you’re planning to operate nationally. The process of obtaining your MC authority number begins with the Federal Motor Carrier Safety Administration (FMCSA) and typically takes up to 25 business days.

If you’re new to the trucking industry, the steps involved in obtaining an MC authority may seem confusing, complex, and intimidating. We’ve put together this step-by-step guide to help simplify the process.

What is an MC Authority?

An MC authority is a unique number assigned by the FMCSA to identify a carrier who is paid to transport regulated goods across state lines. This MC number is also known as an operating authority or trucking authority.

Types of Authority

It’s important to choose the correct type of MC authority for your trucking business – it affects the type and level of insurance you need to stay compliant in the industry. Let's roll through the different types of MC authorities available:

1. Motor Carrier of Property (Except Household Goods)

This MC authority is your go-to if you're in the business of hauling regulated goods (excluding personal household goods) for the public.It could involve transporting anything from construction materials to consumer goods and getting paid for it. To cruise through state lines with this authority, you'll need to submit proof of public liability coverage for both bodily injury and property damage (BI & PD) to the FMCSA.

2. Motor Carrier of Household Goods (Moving Companies)

If your trucking business involves transporting household goods – think sofas, fridges, furniture, etc. – this is the MC authority you’ll need. In this context, household goods include everything meant for a home, whether it’s coming from a factory, a store, or moving in between residences. You need this badge if your' job includes tasks like estimating, packing, unpacking, or loading and unloading household items at people's homes.

But there's a twist – before you hit the road, you'll need to file both public liability (BI & PD) and cargo insurance with the FMCSA.

3. Specialized MC Authorities

Of course, the trucking world isn't just about property and household goods. It's got niches for everyone.: Here are some other MC authorities that may better fit your business:

Brokers

If your job is to arrange transportation between shippers and carriers, you still need an MC authority. There are two different types of brokers:

• Broker of Property (except Household Goods): An individual, partnership, or corporation paid for orchestrating the transportation of non-household goods for others, utilizing the services of an authorized Motor Carrier. The broker does not take on liability for the property or take physical possession of the items in question.‍
• Broker of Household Goods: An individual, partnership or corporation paid to coordinate the transportation of household goods for others, including arranging transportation by an authorized Motor Carrier. To qualify as a Broker Of Household Goods, the trucking business you’re working with must also offer additional services along with transportation, like packing, inventory checks, or estimate offers. This type of broker won’t take on responsibility or possession of the household goods at any point.

International Movers 

There are specialized authorities for handling international cargo. Think products or goods that jet off to foreign lands or touch down on American soil from faraway places. International transportation requires extra stamps in your paperwork. You will find two types in this category, as defined by the FMCSA:

• United States-based Enterprise Carrier of International Cargo (except Household Goods): A U.S.-headquartered company that transports international cargo (except household goods), but is owned or controlled (greater than 55%) by a Mexican citizen or resident alien. The cargo must either be from a different country or be destined for one.
• United States-based Enterprise Carrier of International Household Goods: A company headquartered in the U.S. but transports household goods internationally. It must be owned or controlled (greater than 55%) by a Mexican citizen or resident alien to qualify for this MC authority. Household goods are defined as personal items that will be used in a home and include items being shipped to a residence from a factory or a store. In this context, transportation is both requested and paid for by the householder.

To learn more about these authorities and how to apply, visit the FMCSA official page.

What’s the Difference Between an MC Number and USDOT Number?

The USDOT number is different from the MC number and is required for all commercial vehicles transporting passengers or cargo in interstate commerce. The USDOT number is unique to each company and is used for:

• Obtaining safety permits for carriers transporting hazardous materials
• Safety audits
• Compliance reviews
• Crash investigations
• Safety inspections

Obtaining a USDOT number is one of the first steps to getting your MC authority.

Who Needs an MC Authority?

You need an MC authority if you plan to start your own trucking company and drive as an owner-operator. Independent truck drivers are able to operate under the MC authority of another company and do not need their own. It’s important to consult your business plan and understand the risks associated with being fully on your own as a trucking company or owner-operator versus operating as an independent truck driver under another company’s MC authority.

If you decide to pursue your own trucking authority, you must also determine what type of cargo you intend to transport: Motor Carrier of Property or Motor Carrier of Household Goods, as we covered in the section above.

While these are the two most commonly sought forms of MC authority, remember the additional types covering brokers, and international shipments of cargo. Clearly defining your role in the transportation industry is crucial for maintaining MC authority compliance.

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Trucking Jobs That Don’t Require MC Authority

Not every carrier or truck driver needs to obtain MC authority.This includes company (fleet) truck drivers, independent truck drivers operating under another company’s authority, and carriers operating under certain exemptions such as:

• Intrastate Carriers: Carriers operating exclusively within the borders of the state where their business is located
• Private Carriers: These are carriers who transport cargo belonging to their company.
• For Hire Carriers Transporting Exempt Commodities: These are carriers who specialize in exclusively transporting non-regulated cargo. 
• Carriers operating exclusively within a federally designated commercial zone: - Commercial zones are typically located in regions where a large metropolitan area is on the border of multiple states. ‍
• Independent Owner-Operators working for CloudTrucks: Independent Owner operators who choose to work with us drive under our authority. Head to our Getting Started page to learn more.

Remember: Independent truck drivers are not required to obtain MC authority if they choose to work for a company.

MC Authority Requirements

Before you can for a MC authority, make sure you have the following:

• Application fee: You’ll have to pay a filing fee of $300 to obtain your permanent MC authority. To reinstate authority, the fee is $80.
• Insurance: You must have the right trucking insurance coverage on file with the FMCSA. The form you’ll need to fill out varies depending on the type of MC authority you’re looking to obtain:some text
  • BMC-91 or BMC-91X: For those seeing Motor Carrier of Property (excluding Household Goods) Authority.
  • BMC-34 or BMC-83: For those seeing Motor Carrier of Household Goods authority‍
• ‍Legal process agent and documents: All MC authority applicants need a process agent – a legal representative or company that will help you with any legal documents. You’ll need to fill out a BOC-3 form with this designation.

How To Get Your MC Authority

Step 1. Create a Business Entity

Before applying for your MC authority, your trucking business plan needs to be exact in certain areas. The FMCSA's criteria include the cargo, operation, and company type your business plan is pursuing (consult your FMCSA application for a full list of criteria). 

You’ll also need to have your EIN (Employer Identification Number) obtained through the IRS and, finally, pre-approval for liability and cargo insurance. If you skip on the preapproval and are denied insurance coverage later in the process, you’ll be unable to proceed with your application for MC authority.  To avoid wasting your time and money, make sure you can be insured. 

Because this process can take up to 60 days to complete, make sure you have enough cash on hand to get yourself through the application period, plus another 45 - 60 days to cover operating costs after you’re up and running because it may take that long to receive payment from your first loads. 

The cost of establishing your business entity ranges from $50 to $500, depending on the state. Insurance typically ranges from $9,000 to $12,000 per year, depending on a variety of factors.

Step 2. Get USDOT Number

To obtain your USDOT number, proceed to the Unified Registration System (URS) portal and follow the instructions. You cannot proceed with your MC authority application until you’ve obtained your USDOT number. Until URS is fully implemented, there is no charge for a USDOT number.

Step 3. Apply for MC Authority

BOC-3 paperwork must be filed through a process agent. The FMCSA maintains a list of process agents who can accurately complete this filing. The BOC-3 paperwork assigns the process agent the authority to accept legal documents on behalf of your trucking company in each state in which you are authorized to do business. Process agents charge anywhere from $10 - $50 to file your BOC-3 paperwork. 

Step 4. Get a Legal Process Agent

The required BOC-3 paperwork must be filed through a process agent. The FMCSA maintains a list of process agents who can accurately complete this filing. The BOC-3 paperwork assigns the process agent the authority to accept legal documents on behalf of your trucking company in each state in which you are authorized to do business. Process agents charge anywhere from $10 - $50 to file your BOC-3 paperwork.

Step 5. File Universal Carrier Registration (UCR) 

The UCR is a permit verifying that you have active insurance coverage in the states you operate in. Your MC number and USDOT number are required before applying for your UCR. Operating without the UCR permit is severely penalized so be sure not to skip this step. The UCR fee is $69 for 0 to 2 vehicles.

Step 6. Pay the Heavy Vehicle Use Tax (HVUT)

The HVUT is assessed on all heavy vehicles that operate on public highways. You’ll need to fill out and submit form 2290 to the IRS to file. You cannot register for an (International Registration Plan) until you have submitted your form 2290. The tax amount you pay depends on where and how far you’ve transported cargo.

Step 7. Register for an International Registration Plan (IRP)

The IRP is an agreement by the 48 contiguous states and Canada granting carriers a license to conduct interstate transport (also known as apportioned plates). If you need help completing this step, consult the IRP website. Keep in mind that IRP registration is required for setting up your IFTA account. The IRP fee may range between $1500 to $2000 for a single vehicle.

Step 8. Set Up an International Fuel Tax Agreement (IFTA) Account

Similar to the IRP, the IFTA is an agreement between the 48 states and Canada for the purpose of collecting fuel taxes. To remain compliant with IFTA you’ll need to file quarterly returns in your home state. Some states require additional permits in addition to IFTA. You should, familiarize yourself with the regulations of each state you plan to operate in to make sure you're compliant when it comes to permits.

Step 9. Enroll in a Drug and Alcohol Testing Program

After you’ve obtained your MC authority, USDOT number, and all the relevant permits, you must complete this final step before you can take your first load. The FMCSA requires every driver with a CDL to enroll in a drug and alcohol testing program. The rules established by the FMCSA and USDOT cover testing, substances tested for, and test frequency. The FMCSA maintains detailed instructions covering the rules and how to remain compliant with their drug and alcohol testing requirements.

Once you’ve completed all the steps mentioned above, go through and double-check everything.Make sure you have the required paperwork, such as permits, IFTA stickers, IFTA registration papers, and other documents required for regulatory compliance aboard your truck.

In addition to the costs mentioned above ($15,000 or more depending on several variables), the entire process of obtaining your MC authority can take about two months to complete. That’s two months that you’re unable to operate and unable to generate revenue. 

Alternatively, you can eliminate the lengthy wait and high costs while removing the paperwork headaches by driving with CloudTrucks. With CloudTrucks, you can enjoy the freedom of being an owner-operator with the back-office support of a carrier.