November 16, 2017
What is Interstate Operating Authority and who Needs It?
Interstate Operating Authority is authority granted by the Federal Motor Carrier Safety Administration (FMCSA) to allow your trucking company to work for-hire across state or national borders. Originally, when you first started your new business, you were given a Motor Carrier (MC) Number along with your USDOT Number. However, things have changed. Now, your Interstate Operating Authority is tied to your USDOT Number, but you still need to fill out an application to get the proper authority to run your business. Need more information? Here’s the first part of our video series that explains who needs Interstate Operating Authority and why:
Do I Need my Interstate Operating Authority?
Whether or not you need your Interstate Operating Authority depends on how you want your trucking company to run. There are two criteria that can help you determine whether or not you need your Interstate Operating Authority:
Are you Working For-Hire?
If you’re planning to haul someone else’s loads, or hauling someone else’s property, then you are considered for-hire. This is different than working in-house, where you are hauling property you or the company you work for owns.
Are you Operating Across State or National Borders?
If you’re planning on working interstate (across state or national borders), then you’ll probably need your Interstate Operating Authority. While it is possible to be successful hauling loads in only one state, there are many missed opportunities if your company is only allowed to haul in that state.
Even if you meet both of these criteria, it may still be possible that you don’t need your Interstate Operating Authority. There are different regulations for those who plan to transport passengers or HAZMAT or are working toward becoming a broker. If you have any questions about if you need your Interstate Operating Authority or not, give our experienced coaches a call at (855) 729-5541 to get the answers you need to get your company started.
How do I get my Authority?
There are a lot of twists and turns you have to get through to start your trucking company. Before you even decide if you need your Interstate Operating Authority or not, start with these steps:
1. Make Business Plans
The types of registrations you need for your new business depend on the type of trucking company you want to run. What you haul and where you haul are two big factors that can help you decide what you need to get your company started.
2. Register Your Business
Whether you’re planning on running your company yourself or are looking to hire employees, your business does need to be registered legally. There are different types of business structures and it’s important to choose the one that works best for you, whether it’s an LLC, corporation, or something else.
3. Give us a Call
Trying to figure out what licensing you need for your trucking company? Save yourself time and money by giving Progressive Reporting a call. We aren’t just here for your money. We want to help you get your company started right. We can help you sort through what you do and don’t need to help run your business.
4. Get Trucking Insurance
No matter what kind of trucking company you’re running, you’ll need to get good truck insurance. When looking for an insurance company, choose an agent that specializes in commercial trucking company insurance, rather than just residential car insurance. What you haul and where you haul can help determine how much insurance you need to get.
If you’re looking to start your new business, don’t waste time and money on registrations you don’t need. Once you have a basic plan, give Progressive Reporting a call. We can create a customized plan for you to get your trucking company started right.