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Thread: Step by Step getting one's own authority

  1. #1
    merrick4 is offline Senior Board Member
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    Default Step by Step getting one's own authority

    Ok I turned in my company truck yesterday and am ready to get rolling. It will probably take me a few weeks to get truck, insurance etc but I'm going to start now trying to get own authority now. There are many posts here with the steps but they are a bit spread out and it everytime you hit the back button it has to be refreshed after doing a search so I am going to do this one post which I will continue editing. Also to be honest a lot of these threads go off topic, with good information too, but it makes it hard to stay on topic.

    As I'm not working, I have time to do this myself. I really Know nothing about doing this except from what I've read here. I have already went on the FMCSA website, but I think I'm going to set up a LLC and put it in that name. Tonight I am going to come up with a name and file. I live in Florida so everything can be done online pretty instantaneously. (www.sunbiz.org).

    So steps to getting my own own authority:

    1) Register with the FMCSA to get my USDOT #
    The website to do this is: http://www.fmcsa.dot.gov/registratio...escription.htm

    USDOT number given immediately (Free).

    Mc# applicaton (form OP-1) completed 05/26/2007 - $300. Response given:

    You have completed the OP-1 application. Notice of the application will be published in the FMCSA Register.

    You may begin operations only after the certificate, permit or license has been issued following your compliance with the requirements shown below:
    Insurance (liability: Form BMC-91 or BMC-91X; and cargo: Form BMC-34) (49 CFR 387) Done. Paid my Insurance premium and they sent in the required form to FMCSA 06/26/2007
    Insurance (surety bond: Form BMC-84 or trust fund: Form BMC-85) (49 CFR 387) Done. Paid my Insurance premium and they sent in the required form to FMCSA 06/26/2007
    Designation of agents upon processes may be served (Form BOC-3) (49 CFR 366) Done. OOIDA files this for free for members


    If the applicant fails to comply within 20 days of the date of publication in the FMCSA Register, a decision will be served notifying the applicant that the application will be dismissed for want of prosecution unless the applicant complies with the requirements within 60 days.

    Within 24 to 48 hours after filing your application you can visit our website at FMCSA to see the status of your application.

    If you have any questions about the OP-1 application process and the issuance of operating authority, please call the FMCSA Licensing Team at 202-366-9805


    2) Received letter (6/12/07) from FMCSA stating that I need to call them to complete the registration process. Basically they just went over my info and asked if I would be hauling OTR and the weight of truck. As I said yes to that they said that within I believe 6 months I would be contacted by FMCSA to set up a safety audit. There would be no fines given or anything like that, they said it is a free service they provide to show me how to keep things in order.

    3) Went to the local IRS office (06/27/07) and submitted tax form 2290 (Heavy Highway Vehicle Use Tax Return). Cost was $550 which is for July of 2007 to July of 2008. It was very simple to fill out and the IRS workers were very helpful. This needs to be done to get your plate. A link to the form is here: http://www.irs.gov/pub/irs-pdf/f2290.pdf

    4)Went to a service to take care of most of the permits. I've done most of this myself, but I had a lot to do this week so I paid a service to do the rest. It was as follows:

    a) IFTA sticker (I paid to get this overnight and got it the next day.)
    b) KYU permit
    c) NY Hut sticker
    d) NM tax ID
    e) IRP which I guess is the plate.

    5) Received call (06/28/07) with automated message informing me that MC authority has been approved for this Monday (07/02/07) and will receive the certificate I think they said a week to 10 days later. This approval was quicker than anticipated as I only submitted my insurance 2 days ago.

    6) Received Certificate of Authority (7/09/07)

    7) Received paperwork back for the IRP. Need to send in certified funds for the amount of $1450.00. I took it to a service so they could send it out overnight and get it back in a day instead of waiting 10-12 days for it.



    Side steps that I will be taking

    1) Bought a health insurance policy today as I will be losing the company policy. Good coverage for almost what I was paying with the company.

    2) Joined OOIDA

    3) Set up LLC online. Here is the link to do it in Florida http://www.sunbiz.org/ This really isn't necessary for everyone but I wanted everything in business name.)

    4) Opened a business account

    5) Sent in application for PrePass http://prepass.com/index.htm

    6) Had lettering on truck placed

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  3. #2
    Jackrabbit379's Avatar
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    Steve, GMAN, and Rev have good information, regarding own authority. Also, there is a thread on obtaining own authority in this forum, which Steve began. Good information. 8)

  4. #3
    merrick4 is offline Senior Board Member
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    Does Steve have a thread strictly for obtaining the authority? I know his first thread had a lot of good info, the Desk to own authority, but there was a lot of side stuff going on which I didn't like sorting through.

    I certainly do not pretend to be the first to do this, I'd just like to have a very clear list of what I'm doing, looking for some good advice and maybe when I'm done it will be a clear resource. When I mean clear, I will be buying a truck, insurance etc but I will not put any of that here in this thread. This will be strictly about setting up own authority and things that one might need to go with it, hence the health insurance. I like things in lists. Anyway as always thanks to all for any and all comments.

  5. #4
    Jackrabbit379's Avatar
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    Yeah, there is a lot of bull being shot in those threads, but there is also good information threads throughout this forum.

  6. #5
    merrick4 is offline Senior Board Member
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    Should I set up for Hazmat as well? If it's not too much more money, I figure it would open me up for more loads. However I only hauled it, it might not be worth it if there is much more paperwork on the company side.

  7. #6
    GMAN's Avatar
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    Merrick, getting your authority isn't all that complicated. You can go on line and fill out the application. It will cost you $300 to do it yourself. That is for the one time filing fee. Before authority will be given you will need to have cargo and liability insurance. Most brokers will require $1MM liability and $100,000 cargo. You will also need registered agents in every state in which you do business. OOIDA will do this for you at no charge if you are a member. It usually takes a few weeks from the time you do the paperwork, to get everything back. Before you will be allowed to get your base plates and IFTA you will need a copy of your authority. You will also need a DOT number. There is no charge for the DOT number. Although I would not start paying premiums before being issued my MC number, you should have it in place where all you need to do is pay the premium. Most insurance companies who write motor carrier insurance require you to have a truck in order to write the policy. They usually note the truck on your policy.

    Once you purchase a truck you will need to pay your 2290 (heavy highway use tax) before you can get your base plates. It costs $550/yr. Some states require you to prove residency. They may also require you to have a telephone number listed in the company name.

    Those are the basics. You can do everything yourself or hire someone to do it for you. I did everything myself.

  8. #7
    rank is offline Senior Board Member
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    Sooo....it's truck before ins and and ins before MC#?
    Lotsa money up front.

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    GMAN's Avatar
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    That is about it, rank.

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    merrick4 is offline Senior Board Member
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    Thanks as always GMAN. But I should be filing for the authority now no? That's what I gathered from the other posts. Like I said I'm going to look at trucks tomorrow, but that doesn't mean I will be getting it tomorrow. One thing I'm worried about is that I believe you said earlier that you pay for the authority and they post it some where then ask you for insurance. Do you know what time frame they give you to give them the insurance? I'm just worried that by the time they are ready I haven't found a truck yet.

    When I do pay for the authority I will update the first post so the timeframe that all this takes place will be there for all to see.

  11. #10
    arky is offline Board Regular
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    Although I would not start paying premiums before being issued my MC number
    For clarification purposes. The MC# is the same as your authority...?

    I will more than likely print this thread and keep it in a safe place. Steve has become somewhat an idol of mine. I would love to do exactly what he's doing one day. For now the finances aren't there, but that could possibly change soon.

    Thanks, Arky

  12. #11
    rank is offline Senior Board Member
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    For clarification purposes. The MC# is the same as your authority...?
    Yep. USDOT# doesn't make you a Motor Carrier. Only the MC# will do that.

  13. #12
    no_worries is offline Senior Board Member
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    Don't worry about hazmat...you won't be able to afford it.

  14. #13
    merrick4 is offline Senior Board Member
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    Quote Originally Posted by rank
    For clarification purposes. The MC# is the same as your authority...?
    Yep. USDOT# doesn't make you a Motor Carrier. Only the MC# will do that.
    Well that doesn't make sense. you said yes that it's the same but that MC# is the only one that makes you a motor carrier.

    I think I'm doing something wrong, I just go this message during registration:

    You have just completed the MCS-150/150A registration process to receive your USDOT number. Based on your answers to the questions asked at the beginning of this process the system determined that you also need operating authority (MC, MX, FF number).

    Please remember each type of authority costs $300 which is NON-REFUNDABLE
    !


    This would mean a total of $600 not $300 so what am I doing wrong?

  15. #14
    no_worries is offline Senior Board Member
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    You don't have to pay anything to get your USDOT#. You only pay for the MC#. The DOT# is simply an identifier and doesn't correspond to anything other than your company's info. The MC# corresponds to the permit which gives you your actual authority.

  16. #15
    merrick4 is offline Senior Board Member
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    Here is the definition of the two USDOT# and MC# for those of us new:

    Operating Authority (MC/FF/MX Number): definition

    The operating authority (MC/FF/MX number) is assigned to interstate for-hire motor carriers and brokers that apply for operating authority.
    These numbers are also referred to as docket numbers.

    The FF number is assigned to freight forwarders; the MX number is assigned to carriers domiciled in Mexico; and the MC number is for all other carriers and brokers



    The USDOT number is the number that the FMCSA assigns to each motor carrier that starts interstate operations.
    Your USDOT number must be marked on all of your vehicles.

    To apply for a USDOT number, please submit a Form MCS-150

  17. #16
    merrick4 is offline Senior Board Member
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    It's asking how many driver will be subject to FMCSA regulations, obviously I'll be starting with one, but I do have a partner that I plan on working with in the future possibly. Do you guys just put a few so you don't have to keep changing or updating it? Or is that really a nonissue?

  18. #17
    merrick4 is offline Senior Board Member
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    So is it Motor common carrier or Motor contract carrier? By the way I was given a USDOT# already. That was easy.

  19. #18
    no_worries is offline Senior Board Member
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    The new URS, whenever it comes out, does away with the dual authorities. As it stands, you will be doing virtually all of your work as a contract carrier, might as well register as such.

  20. #19
    GMAN's Avatar
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    You only put the number of drivers you have at the time you apply. You will be required to update your MCS150 information every two years. My state requires that I update each year.

    A motor carrier must have either contract or common authority. You don't necessarily need both. The Feds don't distinguish between the two any more. I have common authority. Most people have common.

    I don't think you will want to get hazmat starting out. They have lowered the cost for the permit or authority for hazmat. I believe it costs $500. The big expense comes in when you get insurance. Hazmat insurance is rather expensive. It can also be difficult to get an insurance company to write hazmat coverage. I haven't seen rate high enough to warrant the extra cost. You don't want to make things too complicated starting out. If you seen you want to haul hazmat you can always add that later.

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    arky is offline Board Regular
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