Considering your own authority?

Considering Running Your Own Authority



Here's a very general idea about how much it'll cost to start running your own authority. , you'll have a good foundation of knowledge to add to your experience. You can do most of the preparation work for yourself and it won't be too hard or difficult, just apply yourself and meditate on the instructions given at every step in the process and you'll do just fine. I've always said, if you're not willing to focus in on the details of the paper work involved with starting to run your own authority, you're probably not ready for the additional focus required to be successful at running your own authority.


General Cash Outlay for Operating Authority

300.00 MC# FMCSA Application
1250.00 Insurance Primary Liability and Cargo
1000.00 Down Payment on a new to fairly new Trailer
500.00 Tax Tag Title
100.00 Compliance Services providing Consortium for random drug and alcohol screening
100.00 If you chose to use a Compliance Service to set up all the other compliance paperwork
12.00 New Mexico Weight and Distance Application 2.00 and 10.00 per Certificate
10.00 New York Application and Sticker
20.00 IFTA Application and Sticker
3,500.00 Roughly is the cash layout in general on average to make the switch
Heavy Highway Use Tax may or may not be due, as already owning your truck you should know by now it's about 550.00 annually Form2290
- California State Application is no charge if you have not run miles under you authority
- Kentucky's Application is free for the KYU

Any one of these may have change, but these prices are fairly current at the time I'm posting the material 1st QRT 2009
One of the first things you'll want to concern yourself with is what is my responsibility at the Authority level, what should I expect to earn and HOW" am I going to do it. Here's a few things to keep in mind and a little bit of what happen to me at the Authority Level

III Business responsibility: This includes but is not limited to the previous responsibilities of the load and the unit, the total responsibility for the creation of the business, the structure of its services, the range and scope of the business, the choosing of all services to the business, all legal requirements, employment requirements, compliance requirements, record keeping e.g. maintenance, driver logs, qualification and medical/drug and alcohol screening and random test, filings, taxes, penalties, legal injunctions, negotiating of all contracts involved in the general day to day business, setting rates, finding loads, gauging the market, research and development "which is by the way is what you're doing now, permits, buying and selling of equipment, trailers and other load securing devices, recovery in breakdown situations, training, office and location, rents, utilities, and all other overhead financial responsibilities, and the list goes on and on and on.

One of the main things to continue to bear in mind is, If you have all this double the responsibility it should go without saying that you should be paid double of what you are paid at the company level. I did nothing but math and Spreadsheets the whole time I owned equipment, and over and over again I found that those that did not have a working knowledge of the market were paid as such that after their expenses they were making in most cases half of what the company drivers make. I'll be showing you some of those numbers. Point is it should never be and the shame is that in an average market with a high demand for truck it never should happen.

Authority stage: The decision to get my own Authority came as somewhat a surprise and carried its fair share of a mystery to me; I had left Panther thinking the grass was greener on the other side over at Tri-State. It wasn't, I think maybe I could have stayed but I was already use to freely finding my own loads, at least outside the service area and sometimes inside all depending on the situation but there was, let's just say, a different kind of environment there for that. So it got me to thinking, maybe God is putting out a challenge for me, and as you can tell I'm always up to it if the Lord "opens the door" so I check the bank and they said "No!", I was some what relieved . I'd just stick it out and who know what the future would hold. But I remembered I'd been with the Credit Union for a long time, so I thought Why not try, turns out, they help me get the loan for the trailer. So the door was open and three weeks later I was on my own Authority and the Lord bless me to learn so much I can't list it all here, so I decided to write a book, so here it is.

 

This is a very serious question, and it is a question "wholly" based on expected market conditions: the best of both worlds is to have both, but I realize you want to get started here: In a decent market you can make a fist full of money with a refer; if you master the trucking market; fail to master the trucking market and I double promise you: "you will take nothing but a beating" regardless of what you run. that being said, if you know what you're doing out there you can make just as much running dry as refer, but if the market is good "hell" why not have a refer and really clean up. Here's the problem: when the market goes south; you are going to be backed into a corner to run refer loads on ridiculous, hideous, just down right mournful prices: now you gota keep fuel in the thang and run it all day, and you're broke, and just wantin to die every dam day of yo life. Man if you're startin out, don't take any chances; run dry and work up to a refer, don't worry, it'll come, if it's meant to be, and in the mean time you can focus more on learning the business, than focusing time on fixin a broke down refer. Hope that help, and now you know----what I know, God Bless you, Jo Bernard

 

Thanks for your comment Mar1138, Sometime people go in business for themselves because the very reasons you stated: I don't foresee you not getting your own authority, here's the only probable challenge: When getting your fictitious name and business license your state might have some hurdles, also if you plan on getting your Hazmat permits later on down the line, but either one of those things didn't require as far as I can remember very much background information. The Insurance companies are always in it for the money, so no I don't think they'll prevent you but you may have to shop around, just in case they are trying to charge you more. As far as FMCSA, your charges did not involve the use of a commercial vehicle, or you might not be using a CMV today, therefore unless I'm missing something I just don't see them not letting you go for it. I would go for it, and if you do, either way let me know, I could add the information to my website, thanks again, and good luck, Jo Bernard