What Are Box Truck Authority Packages and Requirements You Must Know About?

What is Box Truck Authority Requirements

Your presence is mandatory in interstate commerce to establish your own trucking company.

And also, you need to register for an active Operative Authority. Operative authority is also known as Motor Carrier Authority or Trucking Authority.

To start the trucking business in all the states, owners should register for an active operative authority in the respective states.

Man seat at a truck entrance

The Federal Motor Carrier Safety Administration incorporates this rule. You know, authorities will vary based on the states’ type of cargo.

Many types of authorities are available in the box trucking business in a simple form.

You need to follow certain steps to get your trucking authority. If not, it may take longer to get into an active state, which delays your earning money and hauling loads.

Holding your authority is crucial in your business structure and allows you to get paid as owner-operators for hauling freight

Male driving a van

Box Truck Authority Requirements Or Checklist

You need to prepare a checklist by knowing the requirements to apply for box trucking authority.

The trucking authority firm grants your company permission from the US government to accept payment for hauling freight as an independent company once you apply for it.

MC number (Motor Carrier) will be issued immediately.  If you follow the below-mentioned requirements, the registration process will be done as smoothly as possible, for your box truck business.

  • The type of trucking authority you need

The type of goods your organization transports will determine the trucking authority.

To cover various materials, you need to apply to multiple trucking authorities. And to transport the cargo within one state, you can apply intrastate authority.

two men shake hands

  • Business name

Fix a name for your company to file the business process. Before initiating the process, make sure you follow the rules and regulations suggested by your respective state.

  • Business structure

Fixing the company structure by discussing it with your accountant. Depending on your organizing strategy, you may plan your company as a limited liability company (LLC), partnership, or sole proprietorship.

  • Employer Identification Number (EIN)

Get the EIN from the IRS website; useful for paying taxes.

  • Primary liability/ Cargo Insurance

Get approval for your cargo insurance from a cargo insurance company. This will protect your cargo from unexpected incidents or accidents.

Parked heavy duty trucks

  • Register your trucking company

Register your company by paying the registration fee.

  • USDOT number

To get the USDOT number for your own company, you need to register with the US Department of Transportation or the United States Department of Transportation.

USDOT is the company’s id number, which provides the complete company information to the freight brokers. Once every two years, this number needs to be renewed.

  • MC number

A motor carrier number is mandatory for your participation in interstate commerce. You should have a motor carrier (MC) number.

By registering your authority in FMCSA, you will receive an inactive MC number. You should file a BOC-3 and get an insurance policy to get the number active.

  • File a BOC -3 & get an insurance policy

After filling out the BOC-3 in legal paperwork, you will get an active insurance policy in 20 days. An insurance policy is required to make your trucking authority active.

Once all the steps are completed in FMCSA, the MC authority will become active, and your authority certificate will be received in the mail.

Heavy duty trucks on the road

  • HVUT

Before setting up an IRP, you need to pay your HVUT. This HVUT is an annual tax assessed on the heavy vehicles operating on the highways.

  • Setting up an international registration plan IRP

If you are operating a company in multiple jurisdictions, you must pay taxes annually depending on the annual report mileage driven.

You need to have your truck’s complete information, including purchase cost, model number, date, and title information, to get your IRP number.

  • Generate an International Fuel Tax Agreement (IFTA) account

An IFTA agreement was signed by the lower 48 states of the United States and the provinces of Canada to make it easier for truck drivers who operate in multiple jurisdictions to report fuel consumption taxes.

After each financial quarter, you must file a fuel tax report detailing all miles driven in multiple jurisdictions and fuel transactions made.

After setting up the IFTA account, you’ll get an IFTA permit and two decals for each qualifying vehicle.

  • Get your Unified Carrier Registration (UCR)

This permit will cover the insurance at your workplace in the respective state.

Trucking Entrepreneurs should register their vehicles in the operating states to pay the taxes annually.  For this registration, you need to have an MC number and USDOT, and it should be renewed yearly.

two men offloading a van

  • Get your registration with the drug and alcohol consortium

Before starting your journey on the road, register with the drug and alcohol consortium. The same should be done with your drivers.

To get FMCSA and USDOT, all drivers should qualify for the drug test. You must have all of your compliance in order before you can establish a trucking company.

If this step is omitted, you will not receive an active MC number resulting in the delay of the business establishment.

Conclusion / Summary

To get your trucking authorities and qualify to getting loads and cargo, make sure to finish all the approval processes in the state and federal administration. Usually, the approval process will be completed in five to seven weeks.

In very rare cases, the application may need further review. At that time, the Federal Motor Carrier Safety Administration will extend the review to 8 weeks.

Renewing their authority certificate will take around 45 to 60 days, as they should thoroughly review the existing carriers.

After collecting the associated charges, the Commercial Trucking Authority will be issued by the Federal Motor Carrier Safety Administration.

The trucking authority’s fee will include the filing paperwork for motor carrier (MC) and DOT numbers (Department of Transportation).

If you need to incorporate any changes in the paperwork, extra charges will be collected.

Truck parked on a green field