Starting your own trucking business is way more complicated than working under some other trucking companies. Getting trucking authority is a main and challenging step in starting a trucking company, but that’s not all. It is one piece of a picture.
There are some steps you have to follow from ensuring DOT and MC compliance, preparing drivers’ files, and obtaining a business license. And there are costs associated with carrying out the whole process such as dot and mc number cost, hiring an agent, and paying for the trucking insurance.
Before you get started with obtaining authority, you must be sure that you are registered with the Federal Motor Carrier Safety Administration (FMCSA) which grants trucking authority, owner-operating, to allow a motor carrier to ship cargo. To carry cargo nationwide and across the globe, you must have your trucking authority. One of the benefits of getting trucking authority is that You can choose your loads and plan your routes. In other words, it gives you complete control over how you conduct business as a truck driver.
But before putting yourselves in the latter process Let’s start with labeling some steps to get trucking authority:
Create Your Business Entity
Taking authority is the same as taking ownership. Before obtaining the trucking authority, you need to make sure in which business structure you want to step in. Whether its sole ownership or partnership.
There are several ways to establish your business from incorporating to comply with an LLC etc. a limited liability corporation is recommended as it offers unique benefits. For example in a sole proprietorship, nothing separates you in any case. But with LLCs, it creates a separation when it comes to dealing with lawsuits and debt cases.
Get The Paperwork Done
The most important thing to keep up with the business you are stepping in is to follow legal requirements set by the federal and governmental entities. The next thing you need to step forward for getting authority is to obtain a USDOT number and MC number. It is the number that identifies what you load and lets the government monitor your carrier.
Hire An Agent
The most important thing is to comply with government rules and regulations. You need to hire a process agent in almost every state that represents the carrier and deal with the legal proceedings or any order served by the main state.
Obtain Trucking Insurance
As we do insurance for our things, trucking insurance is also important. It seems like a cost but it serves as an investment in case anything goes wrong. Trucking insurance is the same as car insurance that covers both property and physical damage in case of car accidents.
Obtaining trucking insurance is frequently a significant constraint for new trucking companies, so do your homework. Without valid insurance, your authority will not be considered “active.” Insurance premiums can be extremely high. Obtaining trucking insurance is crucial among these steps.
Complete The UCR
The Unified Carrier Registration, or UCR, is an annual fee charged to all trucking companies that transport goods over several states or worldwide. You must register for the UCR within your state to follow the regulations set by the government for getting trucking authority.
Sign Of Your Authority
After you’ve gotten everything in order and you got your authority, the only thing remaining to do is set up some signages on your truck. On your truck, you’ll need the following 2 parts of lettering. One isThe legal name of the company that owns and operates the truck and the second is The DOT and MC number issued by FMCSA. Because the signage must be prominent, use contrasting colors to make it stand out. Now you are all done to start your business and enjoy the ownership of the trucking company.
Conclusion
Despite the long process of getting trucking authority, it is worth mentioning that starting your own trucking business is quite overwhelming. It has its challenges and hurdles, as does every initial stage of starting any business. That’s why people don’t step into this venture without realizing the benefits they are offered to enjoy once they are all set to move.
