Hey yall,
Some 6 years ago my father applied for his own authority. He got his mc and dot numbers, but he was a one man show and ended up being sick. He couldnt afford to not work so he never submitted proof of insurance.
Here were are after almost 2 years ready to go out on our own. We have been teaming together and have 2 guys driving our other trucks.
My question : What would we need to reinstate his original numbers? Or is it far too late to do that? Would we have to file for new numbers?
Brokers wont work with "new" authority owners, will it be just as tough booking a load if the broker sees the numbers have been inactive for 6 years?
What are some pros and cons?
We have the ability to book loads with the company we r leased to now, but we want to go our own way
Reinstating authority
Discussion in 'Ask An Owner Operator' started by kw600, Aug 2, 2013.
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If he never submitted the initial insurance filing, then the numbers never went active.
Even if you do reinstate those numbers and get them active, the authority grant date will still be just as recent.
The only thing you will gain will be a low number. But the authority history will still show the current date as the grant date.
It won't do much for you if the broker actually looks at your authority history.
But to answer your question... yes you "could" since numbers don't get re-issued. But is the hassle worth it... I wouldn't think so. -
Which hassle? Of reinstating his numbers? Do you recommend we file for new ones?
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The hassle of reinstating old numbers. As I was trying to explain, any benefit of "old numbers" providing credibility to brokers will go out the window since the authority history will show that you only went active recently.
Basically it sounds similar to "buying credit" from a business perspective.
But legally, if nothing has changed since the initial application you would have to continue that application anyway since the regs say that you can't hold more than one set of numbers. Which would come up during your new entrant audit. If something has changed since then (anything really), then you could apply for a new authority.
Again, the benefit of the original application would only result in a shorter number on the side of your truck and $80 reinstatement fee instead of $300 new application fee.
The $220 difference in pricing might be worth it.
Also consider the insurance shopping aspect... when the underwriter sees the old date for the original application and the attempt to activate now, questions will come up.
To me... I'd apply new and work your way up like everyone else. -
Would the fact that we changed from a DBA (when first got numbers) to an LLC be a reason to file for new numbers? How would it work since both DBA and LLC are in same name?
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DBA and LLC are different business structures. So you can apply for new numbers legally.
they really aren't the same name since the LLC has a suffix of ", LLC" -
Even if the name is EXACTLY the same? How would we be allowed to file for a new authority since the dba is in his name too
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Bump please
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DBA isn't a business structure. LLC is. I'd likely go for reinstating, not new. That would be my preference - I think - but I'd likely give the fine folks at OOIDA a buzz and get their opinion.
kw600 Thanks this. -
You have two things in play. 1. Authority was never granted (since there was never an insurance filing) and 2. Business form change.
Look up the MC on the FMCSA search page and see if it exists, and if so what the status is. If it's not there, do it over. If it is there and suspended, you should probably call and ask them how to proceed.
The form change is the tricky part. If you attempt to just post up an insurance filing, it will be rejected if the LLC name isn't exactly what you registered in the beginning. Also, everything about this scenario will raise red flags on a possible chameleon carrier registration. Expect some scrutiny. Also check your insurance quote. My insurance was about to requote my whole policy until several phone calls and they agreed to just change the company name on the policy. They also wanted to see documentation that ownership and the state of the business had remained the same.
If I had to guess, I'd expect them to want you to file the business form change first, then post the insurance certificate once that gets approved. There's a list of documentation you'll have to supply that proves your business exists as you say it does (articles of incorporation, stock ledger, etc). Basically proving that you are the same exact people under the new business form with no indication of fraud. Then wait for the authority to be granted. The business form change can be submitted online using the user-id and pin you got when you filed in the beginning.kw600 Thanks this.
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