What does "have my own authority" refer to?

Ahhh No ...If you start reading the regs for each state now,and you read for 24 hours a day, you will never finish..just make sure you know most important ones. And they are mostly deriviates of FMCSA rules anyway

 

ok, thanks. i just want to keep MY money in MY pocket. i didn't really think i would know ALL of them.

 

Have known several drivers with their own authority. You are responsible for everything,IFTA (fuel tax) ,yearly vehicle inspection,yearly UCR fees,and dont forget about DOT showing up at random to your house(if they decide to audit you)!!

 

The problem with asking the SAME QUESTION to five different drivers or cops is you'll get FIVE DIFFERENT ANSWERS. Usually what they tell you is what somebody told them one time. Example: How high off the ground does my airlines by the tandems need to be? One driver 10 inches off the ground,another 12 inches off the ground,another no 15 inches off the ground. Best to read the regs.

 

they can do that?

 

Some of the posts about authority are not exactly correct. In order to haul freight you must have motor carrier authority. There are two types of authority, interstate and intrastate. Interstate means that you can haul freight across state lines. Some states have intrastate authority. That means that you only pick up and deliver within that particular state. Interstate authority is granted by the federal government through the fmcsa. The filing fee is $300. You can apply and pay the filing fee online. It usually takes about 3-6 weeks from the time you apply until your authority is approved. Your credit has nothing to do with whether you can get authority. When you apply for authority you will be assigned a docket number. This will become your motor carrier number for your authority. When you apply for authority you will also apply for a US Dot number. You don't have to have authority to get a DOT number. I won't go any further with that at this point. There is no fee for the DOT number. Authority simply means that you have been granted the "authority" to haul freight. Once you have authority you can run one or more of your own trucks under your authority. You can recruit and hire drivers to drive your equipment. You can also contract with owner operators who will operate under your authority. This is called leasing on owner operators.

In order to obtain your authority you will need minimum coverage of $750,000 of liability insurance. Most shippers and brokers require a minimum of $1 million liability and $100,000 cargo. Some specialized segments may require higher levels of coverage. You will also be required to have registered agents in every state in which you plan on doing business. This is in case you are sued or for you to receive any type of other legal documents so that there is someone in that state that can receive service on your behalf. At one time the feds offered two different types of authority; Contract and common. I don't recall if they still offer the two different types, but the government no longer makes a distinction between the two. There are different rules for those hauling certain types of freight, such as household goods, hazmat, etc.,

Once you receive your authority you can conduct business in the same manner as any of the major carriers you see on the highways, such as JB Hunt, US Xpress, Schneider, etc., Once you receive authority you can apply for an apportioned plate, sometimes called a cab card, and set up a fuel tax account (IFTA). There are quarterly reports which need to be filed for your IFTA. A few states have their own separate tax accounts, such as New Mexico, Kentucky and New York, that also require quarterly tax filings. All miles traveled and gallons of fuel purchased in each state must be accounted for and filed with the respective states. IFTA is usually filed in your home state.

At this point, the only thing you need to apply for authority is insurance and $300. There are no background checks, criminal or otherwise. There are also no credit reports required to qualify for authority. When you apply for authority your application for is advertised in a federal registry. This is done so that anyone who has an objection to your having authority can object. That rarely happens and is a throwback to the old Interstate Commerce Commission days. Back then it was much more difficult to obtain authority. Any of your potential competitors could potentially prevent you from getting authority. The ICC was closed down several years ago and we now have the FMCSA. It is the regulatory agency which is responsible for all the mostly useless regulations governing motor carriers.

Getting your authority is not very complicated. It may sound like it is difficult, but it is really a fairly simple process. The insurance is usually the most difficult to obtain and the greatest expense, other than your equipment. Insurance costs are high for new entrants. There are also compliance requirements, such as belonging to a drug consortium, maintaining logs for all drivers, setting up driver qualifications files for all drivers, setting up maintenance files for equipment, etc.,

Doing the paperwork is not too complicated. If you keep your files up to date, it isn't that difficult. Some of us use trucking specific software to run our business, such as Trucknpro. It helps keep things organized and your books are up to date. That makes quarterly tax filings easier and you are ready for income tax filings at the end of the year.

 

perfect and thorough explanation G/MAN

Keep in mind....new entrant FMCSA audit.( Pretty much just showing up to see you are 'trying' your best) Generally no Fines are given and they will give you helpful suggestions on Driver Files,Logs Etc.

Best of Luck if he pursues things......

there are a few other Tidbits..Like Oregon weight distance Tax, New Jersey Corpoation filings, and a few states require intrastate authority if you plan on picking up and delivering in said state

 

You are welcome, stayinback. The new entrant audit is something fairly new. It is like a free audit from the fmcsa. Essentially, they come in, inspect your equipment and files to make sure you have everything set up properly. With the new entrant audit, any problems are discussed with the carrier, but no fines are levied. They just want to make sure you are set up to be compliant. After the new entrant audit, if they come back to check on your files and find a problem, they could levy fines. I know most people don't like the idea of them coming in and checking the books, so to speak. However, these people will check to see if you have a driver qualifications file, maintenance files, logs in compliance, drug consortium, etc., I have a family member who went through the new entrant audit several years ago. Things went smoothly with them. In fact, they were very helpful. They already had things set up properly, so the audit went smoothly. Her husband was a diesel mechanic and did all work on their equipment so it was always in top shape.