Cost of Authority

[pepe4158]

Woo-woo ....just made it back to California last night. Still have me base plate to pay for, state rgistration and IFTA and quess I am good to go. I didnt have to pay a dime till I got closer to California. New Mex wanted $10 at the scales, and Arizona wanted $130.00 (Gasp n cough) ....afraid what California Nazis would have wanted, so I snuck in while Cajone scales were close under cover off darkness and will wait till Monday to go pay it all in one lump sum for eveything......no single trip crap.

Woo-woo ....just made it back to California last night. Still have me base plate to pay for, state rgistration and IFTA and quess I am good to go. I didnt have to pay a dime till I got closer to California. New Mex wanted $10 at the scales, and Arizona wanted $130.00 (Gasp n cough) ....afraid what California Nazis would have wanted, so I snuck in while Cajone scales were close under cover off darkness and will wait till Monday to go pay it all in one lump sum for eveything......no single trip crap.

Did you get your authority yet? Your not good to go until you get your official authority paper in the mail.

What are you being charged for? I've been to all those states and never had to pay anything?

[GMAN]

You will need proof that you have paid your 2290 and that you have your authority before you will be allowed to get your base plate and IFTA. $130 for Arizona? That must have been a fine. Surely they would not have charged that much just for bobtailing across the state.

[pepe4158]

Hmmm not a fine, they called it a 30 daytemporary plate registration, they issued me another papper plate like the one in my window from N.C.
They didnt seem to give me a choice whether to buy it or not, for me to cross B.T., without my permenant base plate, $130.00....actually (128.00 but she didnt have change )

[pepe4158]

Say G-mn...did you or Steve ever incorporate? Hmmm filling out this Ca IRP junk....sees beeter if I did, but not sure. If so is LLC best?

[oldmanrandy]

Am about to get my own authority also and have been doing some
research.
On the FMCSA web site, the place to get your authority on-line, the
instructions for filling out form OP-1, Motor carrier authority, states,
Page #8
"Appropriate insurance forms must be filed within 90 days after the date
the notice of your appplication is published in th FMCSA Register.
Form BMC-91 or BMC-91X for bodily injury and property damage, form BMC-34
for cargo liability, Form BMC-84 for broker surety bond,and Form BMC-85
for broker trust fund agreement.
The FMCSA does not furnish copies of insurance forms. You must contact your
insurance company to arrange for the filing of all required
insurance forms."

Also the section of the OP-1 form which talks about insurance,
it says "Will have....... amount....."
It never says Already have
and it never asks for Binder # or Company Name.
It looks like to me that the FMCSA wants it all from the insurance Co.

This seems more reasonable to me.
Look at Fed Ex. they have the authority but don't own the Trucks,

If I have missed something, please let me know.
I have been reading this thread and because of the time line in the start
up I have decided to get the authority going and MC#, DOT# and KYU#, Ifta etc.
all started now. also BOC-3.
The on-line form is simple.
About 30 questions, all name address etc.
$300 by credit card and I quess its done
Input guys
Input

[GMAN]

Say G-mn...did you or Steve ever incorporate? Hmmm filling out this Ca IRP junk....sees beeter if I did, but not sure. If so is LLC best?

I have had a corporation for years. The one I use I incorporated in 1988, I believe. I have owned several corporations, the first was about 1971. I prefer a corporate structure. If you incorporate, you may want to file a Sub Chapter S election with the IRS. You could also use the LLC or LLP. Personally I prefer the basic corporation. I like it for the tax benefits as much as the protection it can offer.

[GMAN]

Am about to get my own authority also and have been doing some
research.
On the FMCSA web site, the place to get your authority on-line, the
instructions for filling out form OP-1, Motor carrier authority, states,
Page #8
"Appropriate insurance forms must be filed within 90 days after the date
the notice of your application is published in the FMCSA Register.
Form BMC-91 or BMC-91X for bodily injury and property damage, form BMC-34
for cargo liability, Form BMC-84 for broker surety bond,and Form BMC-85
for broker trust fund agreement.
The FMCSA does not furnish copies of insurance forms. You must contact your
insurance company to arrange for the filing of all required
insurance forms."

Also the section of the OP-1 form which talks about insurance,
it says "Will have....... amount....."
It never says Already have
and it never asks for Binder # or Company Name.
It looks like to me that the FMCSA wants it all from the insurance Co.

This seems more reasonable to me.
Look at Fed Ex. they have the authority but don't own the Trucks,

If I have missed something, please let me know.
I have been reading this thread and because of the time line in the start
up I have decided to get the authority going and MC#, DOT# and KYU#, Ifta etc.
all started now. also BOC-3.
The on-line form is simple.
About 30 questions, all name address etc.
$300 by credit card and I quess its done
Input guys
Input

You can do it all on line now. You will need your MC# and letter granting you authority before you can get anything else. You are correct about your insurance. Your insurance company should be able to file the appropriate forms in a day or so after you notify them that your authority has been granted. I would not spend the money getting my insurance until you are notified and have a MC#. If you do, you will be paying insurance for a few weeks before you can actually begin conducting business. You will also need signage for your truck.

I would have my insurance lined up before applying for authority. I don't recall how much experience you have, but that is a major factor in who is willing to cover you.

I don't know the exact sequence of events when I got my authority but I was under the impression you need to have your insurance on file before they would issue your authority.

[GMAN]

Steve, if memory serves, once your MC# is issued, you will be given a certain amount of time to get your insurance information filed. If you fail to get your insurance filed within the required time frame, you will not be given your authority. Unless things have changed since I first got my authority, you don't need to have your insurance prior to filing for authority.

Steve, if memory serves, once your MC# is issued, you will be given a certain amount of time to get your insurance information filed. If you fail to get your insurance filed within the required time frame, you will not be given your authority. Unless things have changed since I first got my authority, you don't need to have your insurance prior to filing for authority.

Yup, your right, I remember now.

[oldmanrandy]

Well I did it.
thirty minutes on-line, and $300 later, I had my DOT# and MC#, instantly.
Within two minutes the phone rang and it was an authority co.
offering my my BOC-3 for $50, two minutes later I got an e-mail with my
completed BOC-3.
This puts the authority in the works, will probably take 20 days to get it.
With authority can get KYU, he will charge $50 for that.
Insurance is ready and waiting for me.
NOW ALL I NEED IS A TRUCK.
I have picked several Freightliners and Volvos I like.
Freights are cheaper.
Years 2000 to 2002.
If I get this right, with your own authority the question of age of the unit
does not come into the equation, like leasing on.
Also, am noticing the used market has lots of trucks.
Are the bad times over or should I just jump.
Thanks
Hope this info helps the next rookie.

[GMAN]

Are you aware that you can get your own KYU, DOT, etc., FREE if you do it yourself? The only fee which must be paid is $300 for your authority.

As to your other question, if you wait until conditions are exactly right, you will never get into business. There is no question that business has been unusually slow for the last several months. I see some business getting better and although some rates are coming up, over all they are still soft. You can still make a living, you just may need to work a little harder for the same dollars. If you are a good manager you can nearly always make money. You need to adapt to changing market conditions.

[pepe4158]

Woo-woo...just got my authority approved.

One last hurdle tho before i CAN MAKE $, IFTA, apperently runs longer for California...so waiting another week at least :sad:

Well remains to be seen how well my insurance company works for me with brokers tho, my biggest test for them so far will be if I get a load n how quick they get back to the broker with a certificate of cargo Insurance.

A lot of times the broker will accept a copy of your insurance faxed to them from yourself. They realize that sometimes your dealing with an agent who only works 9 to 5. They just won't send out a check until they get the real certificate faxed to them from the insurance company.

[GMAN]

My insurance broker will send a certificate within minutes from the time I call.

[LOAD IT]

Well Sonnies opinions make sense....except the part about getting your own authority first before you bought the truck. That ISNT feasable. I am filling out the papperwork as we speak, I MUST have my insurance FIRST....so how could I have insurance without owning a truck (dont know how)????? Would love to know how that could be done?
As far as taking a bus (this one had an issue with too).......well I am 100% cheapskate, and NO expenses while waiting around (freght is slow now") and I would have slept on the SIDEWALK if they would let me (without rousting me!"they kicked my sorry ass outta the bus terminal when I got to Charloette) if I could have saved a buck. If I have to drive up to Sacramento to camp on Arnies doorstep to get the rest of my authority I am gona sleep in my hatchback n screw paying 40 bucks a night for a motel! ;-p
(Sacs about a 7 hour drive or so from me)

Having the Insurance first is a common misconception, get it last. Reasoning: Authority costs $300 (you can afford that), Process Agent $35 (you spend that on dinner) You now have the MC number the only thing left is Insurance which will probably be 2 months payment up front for a rookie probably $3000 (i'm guessing, but I know more than $1800) Now you are legal to put your name and numbers on the door. How about your state requirements?