If you’re leased with a carrier, but wanting to strike out and build your own trucking empire you first must think of getting your authority from the FMCSA, there are no shortcuts, when taking on this challenge. At Truckers Solution, we have put together 3 important things to consider when deciding if getting your authority is right for you!
Insurance – Getting your authority will require liability insurance. All carriers are required to have a minimum of $750,000 in insurance for general freight, and $1,000,000 for Hazmat. The premiums for insurance will cost anywhere from $4,000 to $16,000 per year per truck!
Cost – The FMCSA requires a process agent in every state that you are doing business in. You will file this with Form BOC-3, and it costs $35.00. Next is the Heavy Highway Vehicle Use Tax (HVUT), which states that any rig weighing at least 55,000 lbs. must pay $100 plus $22 for every 1000 lbs. over 55,000. The unified carrier registration (UCR) is the next to-do. The fee here is based on how many trucks are in your fleet. 1 or 2 costs $76, and only climbs from there. International Registration Plan (IRP) also known as the apportioned plate, or cab card, is filed in your state. These fees are about $2100 for the first registration year. IFTA requires a nominal fee, and is based on your state. It can cost nothing to $10. Lastly your company is required to join a drug and alcohol testing program. Anyone in the company with a CDL must pass a drug or alcohol screening.
Timeframe –Your MC# must be issued by FMCSA and put in the register. Then a protest period begins that lasts 14 days. After the protest period, the insurance and BOC-3 must be filed. The insurance company handles filing the insurance. It is on you to file the BOC-3. If you’re thinking about leaving your job, and going out on your own, keep in mind that the authority process takes 3 to 4 weeks to complete.
Sound like a lot of work? It is! Luckily there are companies that can handle most of this for you. Truckers Bookkeeping Service processes thousands of trucker’s authorities, with a $389 down startup bundle, that keeps them compliant with the FMCSA. Here is their website. Truckers Bookkeeping Service.
This information was sourced from our friends at DAT and Truckers Bookkeeping Service