The Paper Trail

rookietrucker · May 20, 2009

[FONT=Arial, Helvetica, sans-serif]The Paper Trail

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Knowing the documents you need and when to apply for them will save you time and headaches when youre ready to obtain your operating authority

For drivers moving toward hauling as an owner-operator with their own authority, the first dilemma is chicken or egg do you buy your truck and then get set up or do you complete the DOT paperwork first before acquiring a rig?

Youll save money and aggravation by completing your applications and securing your permits before buying a truck, says Rick McNeill, president of Motor Carrier Consultants of Mobile, Ala. At the very least put off truck shopping until youve started the paperwork process. If youre going to lease to a carrier, you can run under that firms authority and dont need your own.

People will purchase a truck and trailer and put their company name on the truck, not realizing its going to take at least three weeks for it to happen, McNeill says. In the meantime, theyre sitting on a truck note and insurance before they can get any business to pay their bills.

Your first step is to file with the Federal Motor Carrier Safety Administration for your U.S. Department of Transportation number and motor carrier number (operating authority). You must have a DOT number to apply for your authority. About 10 to 12 days after filing, the FMCSA will send out a first letter acknowledging the application has been reviewed and accepted.

Once you receive the first letter, you can buy liability and/or cargo insurance. Save time by shopping for insurance quotes after filing for your MC number, but hold off on buying coverage, McNeill says. It takes only 24 to 48 hours for an insurance company to post your insurance filing with FMCSA.

At the same time you file your insurance, you should complete your BOC-3 process service agent form filing. This is a listing of registered process agents by state who, if a legal action is filed against your company from outside your base state, will accept legal documents on your behalf. It takes 24 to 48 hours for the filings to appear on the FMCSA federal register. Once the filings appear in the register, a mandatory five-day waiting period begins before the final authority is issued.

While youre waiting for your MC number, dont forget to file for your Unified Carrier Registration, McNeill says. Launched in 2007, this program applies to all carriers transporting goods in interstate commerce. About 40 states participate in the program, which is administered at www.ucr.in.gov. This is an electronic filing that will show up when your truck goes through commercial scales. If you operate in a state thats not active in the program, you will be directed to register using another state as your base.

Youll also want to check the states where you plan to operate for supplemental fuel taxes Kentucky, New Mexico, New York and Oregon and for state intrastate authority, McNeill says. Thirty states have intrastate authority, but enforcement hasnt been a high priority in some of them.

You cant run your business without posting a copy of your operating authority in your vehicle.

more here>> The Paper Trail

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When to get required documents
Here are the important documents youll need to become an independent owner-operator. The sequence will take about three weeks.
U.S. Department of Transportation number: You need this to apply for operating authority. Apply for this first.
Motor Carrier number (operating authority) issued by Federal Motor Carrier Safety Administration. Apply for this next. It will take longest to receive.
Insurance: Buy liability and/or cargo coverage after notice that your MC application has been accepted. Will be filed with FMCSA within 24-48 hours.
BOC-3 process service agent form filing: File at same time you buy insurance.
Unified Carrier Registration: Online filing required of all carriers transporting interstate goods.
International Fuel Tax Agreement: Fuel tax form covering all states except Alaska and Hawaii.
State supplemental fuel taxes: If you plan to run in any of four states that impose a supplemental fuel tax (see main story), you should register in those state programs.
Intrastate commerce authority: Check if any of the states where you intend to operate require intrastate authority.
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Mike_MD · Aug 13, 2009

Your first step is to file with the Federal Motor Carrier Safety Administration for your U.S. Department of Transportation number and motor carrier number (operating authority). You must have a DOT number to apply for your authority. About 10 to 12 days after filing, the FMCSA will send out a first letter acknowledging the application has been reviewed and accepted.
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Not true, you may file on-line for free at www.safersys.org. What takes time is the initial contact and having a PIN mailed to your home. If you file on-line then you receive your DOT number immediately.

Once you receive the first letter, you can buy liability and/or cargo insurance. Save time by shopping for insurance quotes after filing for your MC number, but hold off on buying coverage, McNeill says. It takes only 24 to 48 hours for an insurance company to post your insurance filing with FMCSA.
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Until the insurance is filed the application will never move forward to be published in the federal register. All applications for a MC number are still published in the federal register and the public has a chance to contest the application. No insurance on file, not initial action initiated for the MC number to be granted.

At the same time you file your insurance, you should complete your BOC-3 process service agent form filing. This is a listing of registered process agents by state who, if a legal action is filed against your company from outside your base state, will accept legal documents on your behalf. It takes 24 to 48 hours for the filings to appear on the FMCSA federal register. Once the filings appear in the register, a mandatory five-day waiting period begins before the final authority is issued.
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So why were you advised to wait? The insurance company must file a BMC 91X with the required level of insurance. No BMC 91X no action initiated.

Carriers without interstate commerce when the safety audit is performed will have their DOT number inactivated and be required to start over.

Be safe.

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