Small guide of what is needed to get your own Authority in the US

Just got my own authority so figure this guide might be helpful to others interested. I've seen people in various places saying stuff that doesn't fit the current process because it has changed since they got their authority. This is the stuff needed and process as of Jan 17th 2020 (when I started the process).


First thing you need to do is register a legal business with your state and get an EIN with the IRS. These can be done together or separately by yourself or with an agency. Legal zoom charges around $600 to do all the paperwork etc to start a business, there is a lot of stuff involved in this. An EIN is quick and easy to get directly from the IRS for free and takes around 2 weeks to become active and usable. Time to establish a company varies based on if you do it yourself or pay somebody else to go through all the paperwork, which can take around 2-3 weeks. But luckily you can do both the company and EIN at the same time to save time, you don't have to get one before the other.
- EIN for free from the IRS: Apply for an Employer Identification Number (EIN) Online | Internal Revenue Service
- Business Registration differs from state to state so you'll have to look that up for your state if you do it by yourself.

Once you have a business name and EIN completed, you can register for a DOT and MC number at Registration | FMCSA
It is somewhat quick and easy to do, but takes time to get it activated. You have to pay $300 to start the MC number registration. Once filling out the application you will have 60 days to get everything else needed completed and submitted or the numbers will be suspended and you'll have to go through the process of getting them reactivated. DOT and MC information is publicly available and many companies watch for new registrations so you will start getting flooded with calls and emails for everything else you (might) need right after you fill out and submit the application for a DOT and MC number. Easily 6-10 per weekday for the first week or two, mostly humans calling, but some recorded messages. The FMCSA will NOT email, call, or text you with any information, so any stuff you receive will be from 3rd parties wanting to charge you to help you get things done. While not necessarily a bad thing, just remember that these offers ARE NOT from the FMCSA. The FMCSA will send you a letter or two in the mail after filling out your application with details on what is needed to finish, including a phone number to call to verify everything is done before final processing and activation. You will also receive occasional letters after submitting the app reminding you of stuff that is still needed and of the deadline if you are not yet active.

*notice* The actual business name for the company you register, the EIN, and the DOT/MC numbers must match exactly.
If you messed up on getting the EIN, it's easy to get a new one issued
If you need to change the company name or EIN for your DOT/MC registration, that can be done via the FMCSA Portal ( FMCSA Login ), there will be a $15 charge for a company name change.

You will need to register for a drug consortium, get BOC3 Process Agents, take a random drug test, and have a driver qualification report made. There are many companies that provide all these services which makes things easier or you can shop around and get things from different providers. Still takes 1-2 weeks overall. These people will need your EIN and Registered Company to exist, be active, and match the names on your DOT/MC before they can proceed.
- You will have to have BOC3 Process Agents available to receive any legal information in every state that you plan to travel in. Agent services are pretty cheap, under $100 a year for service in all 50 states. The company you get this service from will send details to the FMCSA to be added to your DOT/MC information.
- You need to sign up for a drug consortium so you can be forced to take random drug tests. FMCSA requires the consortium to issue x% random drug tests per a year out of it's entire customer base. The dug consortium will update the FMCSA with their info for your DOT/MC information.
- You need to take (and pass) a random drug test before you can actually start driving, just like if you were being hired by another company.
- FMCSA requires a driver qualification report to be made and kept on file at the company home address.

You will have to have at least Bodily Injury and Personal Liability insurance on file with the FMCSA to get your authority activated. The policy DOES have to be in the companies name. After getting the policy YOU have to call your insurance provider and request that they submit form BMC-91 to the FMCSA, or BMC-91X if you get insurance from more then one provider. The insurance provider will not do it automatically. Besides that, you will also need cargo insurance to work with brokers and other stuff for your truck/trailer like collision.

To get your truck registered you will need to pay for Highway Fuel Tax (form 2290) and sign up for an Apportioned Account (for IFTA mileage logging) with the DOT and go through the International Registration Plan to register your truck for all states and Canadian provinces you will travel though to get a Cab Card to keep in the truck. Requirements and costs vary by state so you'll have to look up your states requirements. Every quarter you will need to report the mileage traveled in every state you are registered for. You will also need to buy IFTA stickers from your DMV or via mail, not all DMVs can provide them so check before visiting.

Besides that stuff, you will also need to get permits just to travel though KY, NY, NM, and OR. These can be temporary as needed or permanent if you will be traveling though them a lot. Although Oregon limits temporary permits to 5 per year. Rules might be different if you live in one of these states, I don't so I don't know.
- Kentucky - drive.ky.gov | Kentucky Weight Distance (KYU)
- New York (HUT sticker) - https://www.oscar.ny.gov/OSCR/OSCRCarrierHome
- New Mexico - Taxpayer Access Point - State of New Mexico
- Oregon - Trucking Online


You will need access to a printer and a scanner. There will be forms that you have to print, sign, and fax or scan/email back. But most can be filled out via adobe acrobat sign and fill or whatever it's called. Numerous forms will need to be printed and kept on file to be inspected if the FMCSA decides to audit you.


Optional stuff you might want:
- Sign up for and wait to receive and set up an elog system unless you buy your own like a garmin elog. But subscribing to an elog service can provide the benefit of easy logging of miles in each state for the quarterly IFTA reporting. Your insurance company may also offer a discount for using an Elog.
- Prepass for tolls and scales if you want it. Keep in mind there are numerous electronic toll services across the country.
- Numerous companies will contact you offering factoring services for a 1-3% fee so you wont have to wait up to a month for payment. Waiting isn't a problem after the first month as then you'll be getting payments for all your loads from the prior month, but this also involves manually billing brokers.
- Bunch of places will contact you offering fuel card services.

 

I don't believe you have to start with any. Get DOT numbers then hire owner/ops to drive under your DOT number, wouldn't have any trucks at the start. Or could get the DOT numbers all activated so when you buy a truck you could register it right away under the company, then update your company information.

That stuff is covered in the Driver Qualification Report. It's somewhat like an application. I've never heard anything about having the create something specific to 'be hired' by my own company and didn't do anything with former employers myself, but the Drug Consortium that I used might have done all that while creating the Driver Qualification Report.