Starting a trucking company and ensuring compliance with the Federal Motor Carrier Safety Administration (FMCSA) involves several key steps. Here’s a comprehensive step-by-step guide with comments and examples to help you navigate the process:
Determine Your Business Structure
- Sole Proprietorship: Simplest form; you and your business are legally the same
- Limited Liability Company (LLC): Offers liability protection and potential tax benefits
- Corporation: Suitable for larger operations; provides liability protection and may offer tax advantages
Register Your Business
- Choose a Business Name: Ensure it’s unique and complies with your state’s naming rules
- Register with Your State: File the necessary documents with your state’s business registration office
- Obtain an Employer Identification Number (EIN): Apply through the IRS website
Obtain a USDOT Number
Whether or not you need a USDOT Number depends on your type of operation, where you operate, and what you transport.
- Apply online through the FMCSA Unified Registration System (URS).
- A government-issued ID is required as supporting documentation. FMCSA
→ IMPORTANT NOTE: In most cases, it’s better and more efficient to apply for your USDOT and MC number at the same time, especially if you plan to operate as a for-hire carrier across state lines:
- Both applications are done through the FMCSA’s Unified Registration System (URS)
- You only enter your company information once
- Saves time compared to doing them separately
- If you apply for a USDOT first and wait to apply for an MC number later, it could delay your ability to start hauling loads
- Applying at once lets you begin setting up insurance, process agent (BOC-3), and safety compliance steps immediately
- Having both numbers ready shows brokers and shippers you’re fully compliant and ready for business
- Many brokers require you to have an active MC number and insurance filed before they’ll even consider working with you
Apply for Operating Authority (MC Number)
→ If you’re a for-hire carrier transporting regulated commodities or passengers, you need an MC Number.
Determine the Type of Operating Authority You Need
There are a few types depending on your operation. Most cargo van businesses need:
- Motor Carrier of Property (except household goods) = OP-1
- For-hire carriers transporting freight (not household goods)
→ If you’re hauling household goods (like for a moving company), or passengers, there are other forms.
Apply for Your MC Number (Operating Authority)
- You’ll apply through the FMCSA URS (same place as the DOT number)
- The application will ask for:
- Business details (name, address, EIN)
- Type of operation (for-hire/private)
- Insurance certification
- Process agent (BOC-3 form)
- Submit the appropriate OP-1 form (e.g., OP-1 for Motor Carrier of Property)
- A $300 non-refundable fee applies. FMCSA
Wait for FMCSA Review
→ After submission:
- There’s a 21-day protest period
- Your MC number becomes active once:
- Your insurance and BOC-3 are filed and approved
- The 21-day period has passed
Obtain Insurance
Your insurance company must electronically file proof of insurance with FMCSA:
- $300,000 minimum liability for vehicles under 10,001 lbs (interstate for-hire); $750,000 for vehicles over 26,000 lbs
- Most brokers/shippers require $750,000 to $1 million liability and $100,000 cargo coverage
- Liability Insurance: Minimum $300,000 for non-hazardous freight
- Cargo Insurance: Typically $100,000 per load
- Bodily Injury and Property Damage: Coverage limits vary based on your operations
Designate a Process Agent
A process agent accepts legal documents on your behalf in every state you operate.
- File the BOC-3 online (most people use a third-party service, ~$20–$50)
- This can be done through a processing agent or online. FMCSA+3FMCSA+3Drug & Alcohol Clearinghouse+3
Enroll in the Drug and Alcohol Clearinghouse
- Register your company in the FMCSA Drug and Alcohol Clearinghouse
- Ensure all drivers are enrolled and comply with testing requirements
Comply with State Regulations
- Check with your state’s Department of Transportation for any additional requirements
- This may include state-specific permits, taxes, or registration fees
- To operate a commercial vehicle in a most states, you must obtain specific permits and comply with various fees and taxes
→ IMPORTANT CONSIDERATIONS
- Hazardous Materials: If you transport hazardous materials that require a safety permit, you must obtain a USDOT Number, even if operating solely within a state. FMCSA
- Vehicle Weight: Some states may have additional requirements based on the Gross Vehicle Weight Rating (GVWR) of your vehicle
- State-Specific Regulations: Always check with your state’s Department of Transportation or the responsible state agency to ensure compliance with all local regulations
Additional Considerations
- Intrastate vs. Interstate Operations: If operating solely within one state, you’re considered an intrastate carrier. Interstate carriers have additional requirements, including compliance with federal regulations
- Insurance Requirements: Ensure you meet the minimum liability insurance requirements as specified by the FMCSA and your state regulations
→ For detailed information and to apply for permits, visit your State Commercial Vehicle Permit page
FMCSA New Entrant Safety Assurance Program
Once registered, your company enters the New Entrant Safety Assurance Program, which lasts for 18 months. During this period, FMCSA will:
- Conduct a Safety Audit within the first 12 months
- Monitor safety performance through roadside inspections
- Grant permanent operating authority if safety standards are met
→ Failure to comply with safety regulations can result in revocation of your USDOT Number. FMCSA
Additional Resources
If you need assistance with any specific step or have questions about the process, feel free to ask!
Thanks for publishing! It’s very helpful!