What are the benefits of having your own athourity

What are the benefits of having your own authority? What are the procedures for obtaining your own authority?

 

Benfeits include more money, abilty to not be tied down to one carrier and there is more. I would NEVER run under someone elses authority. With having your own authority includes ALOT more headaches! It is not meant for everyone, I spend over a year in just planning my business!

 

1. You have to pay ALL of your insurance. Cargo and liability
2. If you get screwed out of money, it's all on you to get it.
3.You have to keep track of all IFTA, if you don't already
4. You can broker or go direct with anyone.
5. Your name, MC, and DOT numbers. Take care of them.
6. You have to keep all records.
7. Audits are on you.(IFTA and DOT)
8. Drug programs, I never participated in one.
9. Some type of an office.
10. You have to do all of your own invoicing, or get someone to do it for you.
11. Registration of your equipment. You pick your own states.
12. The new laws and regulations, is for you to figure out.
13. You will have nobody in your corner unless you pay them.
14.You can do whatever you want, whenever you want to do it. (This is the cause for a lot of broke O/O)
15. You will learn to fill out broker packets. A lot of them if you choose to haul for a lot of brokers.



I am sure I could go on. There is a lot to weigh out and factor into.

 

If you can do basic math and keep a couple of files you can operate under your own authority. IFTA is simple, even if you don't understand it at first take your miles driven for the quarter and your gallons of fuel purchased into the tax office they will help you fill it out. It worked for me.

Go to the FMCSA website, fill out a request for a DOT number. It will be issued instantly free. Then go to the form for requesting an MC number. This cost $300 and is only paid once. In a few days this is temporarily issued. You then have 60 or 90 days (I forget days) to get insurance and file a BOC3 with the FMCSA. If you join OOIDA they will file your BOC3 free for you. Its a list of lawyers that will represent you in each state if you are charged in an accident, they provide the list and no big deal. Your insurance company will contact the FMCSA to inform them you have insurance. Then your MC authority becomes legal to operate with.

Then buy a tag and you are off. There are MANY places to find loads on line. I recommend finding an honest factoring company with a low fee. I use AFS in Madison, SD. They handle collecting the money from a broker and buy your invoice same day. Factoring is one of the best things that has ever happened to trucking I believe.

Join a drug consortium with OOIDA, about $100 a year and get a pre-employment drug test before pulling your first load and file it. This is required.

As for an office, I have a couple of files with my stuff in it at home. I was audited at home by the DOT Oct 2007. They set a computer up on my kitchen table with a printer. 1.5 hours later they left. It's a first time educational DOT audit designed to help show you what should be done.

The DOT will contact you within 18 months starting up. Then you have 30 days to return a call and schedule audit. The inspector has a free DVD they can give you to help you before they come. Nothing to fear, it was a helpful good experience for me.

To me, if you can get a truck without payments that gets GOOD mileage and basic record keeping. It is worth doing. I personally would never lease onto a company. They are just taking your money for work you do. It generally it takes 1 minute to sign broker agreements. Good luck.

 

Why does it seem like you are directing this to me? He asked about pro and cons. I listed several. You make it sound so easy. I've been there I know what it takes.

 

I directed nothing at you. I answered the second part of his question, you didn't. For me it has not been hard nor has it been the nightmare that everyone jumps to say. Freight rates are up right now and truck demand is up. I also have been there and "AM" there now. I operate dept free.

 

That was the point I was TRYING to get across. That's all. But, I have failed in doing so. Daycabber it all yours. I must be doing something wrong.

 

Daycabber, I also live in that area and am looking for a good broker with loads in the va, nc area. Can you recomend any brokers you know of and trust for runs out here. Thanks for any and all info