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How to Get Your Operating Authority
12 mins read
How to Get Your Operating Authority
10:35

Obtaining your authority to operate can be a complex process, but this guide breaks it down into actionable, compliant steps.

If you’re an owner-operator who is considering getting their own operating authority, you’ll need to be aware of the regulations and costs involved. Even though the financial risk is much lower when you lease your rig to a motor carrier, the earning potential of operating independently convinces many drivers to do so every year.

Below, we answer the following questions to help you decide whether you should take the plunge and start your own trucking company:

  • What is an operating authority?

  • Do I need an operating authority?

  • How do I get my own operating authority?

  • What's the difference between an operating authority, motor carrier (MC) number, and DOT number?

  • What happens after I get my operating authority?

  • Who can help me apply for my operating authority?

What is an operating authority?

If you're hoping to haul freight as your own trucking company, you'll need to obtain operating authority from the Federal Motor Carrier Safety Administration (FMCSA). This is done through an application process, and the FMCSA will issue a Motor Carrier (MC) number upon approval. 

Do I need an operating authority?

For-hire, interstate carriers that haul federally regulated cargo or passengers need a motor carrier number. 

Depending on what cargo you're hauling, you may need to apply for multiple types of operating authority. Additionally, some states may require Intrastate Authority if you're moving loads within their borders. It's essential to apply for the appropriate operating authority, as the entire process can take up to two months. 

This chart from the FMCSA can help you decipher if you need an operating authority.

What's the difference between an operating authority and a motor carrier number? 

If you’re starting a trucking company, you’ll quickly run into three terms that can cause confusion.

Operating Authority (MC Number)

When the FMCSA approves an operating authority application, it assigns a Motor Carrier (MC) number to identify that authority. Different types of authority may be issued depending on the services a company provides.

In short:

  • Operating authority = your legal permission to conduct certain trucking operations

  • MC number = the identifier tied to that authority

DOT Number

A DOT number is a unique identifier assigned by the FMCSA to identify and monitor regulated transportation companies. The FMCSA uses this number to track a carrier’s safety record and regulatory compliance, including information gathered from roadside inspections, crash investigations, audits, and compliance reviews.

A company must obtain a DOT number if it operates commercial vehicles in interstate commerce and meets certain criteria, such as operating vehicles weighing more than 10,001 pounds, transporting passengers, or hauling hazardous materials that require a safety permit. Learn about all the criteria for DOT numbers.

And remember, Foley can help you file your application for a DOT number — at no cost to you.

A Recent FMCSA Alert About DOT and MC Numbers
 

In March 2026, the FMCSA issued a public warning reminding carriers that they should not sell, buy, or lease USDOT numbers or MC numbers online or from unknown partiesand that there are only a handful of corporate transactions where transferring numbers is allowed.

As the alert states, if you try to sell your US DOT number "outside of a legitimate corporate transaction, FMCSA will initiate proceedings to inactivate the USDOT Number and revoke all related registrations, including safety registration required under 49 U.S.C. 31134 and any operating authority registration required under 49 U.S.C. 13901-13905."

As for MC numbers: Historically and due to the Interstate Commerce Commission, MC numbers often were transferred. But the sunset of this commission means that MC number transfers are much less common. In fact, there are only a couple of instances when the FMCSA would consider it a legitimate business transaction, which you can read more about here.

Bottom line: When in doubt, talk to a compliance expert like Foley.

PRO TIP: MC Numbers Are Being Folded into the USDOT System
 

Another reason these terms cause confusion is that the FMCSA is modernizing its registration system. Under the agency’s registration modernization efforts, the FMCSA has proposed eventually phasing out MC numbers and using the USDOT number as the primary identifier for all registrants.

In the future system, different types of registrations and operating authorities may be tracked through suffixes tied to a single DOT number rather than separate docket numbers.

For now, however, MC numbers and DOT numbers still coexist, and carriers must ensure they obtain and maintain the correct registrations for their operations.

How do I get my own operating authority?

Before you get your authority to operate, you need to decide on the following business factors:

  • Business name

  • Business type — Foley highly recommends working with a trusted accountant to decide how your business should be organized: as a sole proprietorship, partnership, LLC, or corporation. Each type holds a different level of liability, and the taxes for each type vary based on the state you’re operating from.

  • Freight — What products are you going to haul? Who are your future customers? Answering these two questions can help you decide what type of trucking business you want to run.

You'll also need proof of insurance.

Before the FMCSA approves your authority to operate, you’ll need to submit proof of liability insurance. You must have a minimum of $750,000 in liability insurance for general freight or $1 million for HAZMAT.

Insurance premiums could cost you anywhere from $4,000 to $16,000 per year per truck. The price depends on your driving record, the state you live in, and the states you plan to do business in. New carriers are often charged a higher premium, with the price typically dropping once the business is more firmly established.

Additional Operating Authority Requirements

You must also complete the following to get your authority to operate:

  • BOC-3 Form — The FMCSA requires you to have a process agent in every state in which you do business. This is the person who would receive legal documents on your behalf in all 50 states and the District of Columbia.

  • Heavy Highway Vehicle Use Tax (HVUT) – Any business operating commercial vehicles weighing at least 55,000 lbs has to pay the HVUT.

  • Unified Carrier Registration (UCR) – You must file this registration with the state your business is based in, and the fee amount is determined by the number of trucks you operate.

  • International Registration Plan (IRP) – Also known as your cab card, which is filed with your state.

  • International Fuel Tax Agreement (IFTA) – A nominal setup fee, which is then based on your fuel use and operating state.

  • Other state regulations — States such as New York, Kentucky, and New Mexico require weight distance permits when traveling through them. 

  • Drug and alcohol testing — You must enroll each of your drivers in a drug and alcohol testing program, and they all must pass a pre-employment drug test before getting behind the wheel.

  • Comply with the Clearinghouse – Even if you're a single-driver operation, you must comply with all Clearinghouse requirements. This would include running queries on yourself.

What happens after you get your operating authority?

Once you clear all these hurdles, you’ll be enrolled in the DOT New Entrant Program. Within your first 18 months of business, you’ll receive a New Entrant Safety Audit that will assess your:

Foley can assist you in applying for your DOT operating authority

If you're starting a trucking company, you probably have a lot of questions beyond how to get your operating authority. Foley's DOT compliance experts can help those wondering how to get a DOT number, how to pass the new entrant safety audit, and more. 

Simply fill out the short form below and one of our friendly specialists will contact you to create a custom DOT compliance and trucking business plan.

BONUS! Not sure what to talk about with a Foley compliance expert?

 Here are some common questions to ask when considering your operating authority registration 

Process and Timeline FAQs:

  • How long does FMCSA take to approve my MC application after submission?

  • Can I start operating immediately after receiving my MC number?

  • What happens if my operating authority application gets rejected?

  • Do I need to renew my operating authority, and if so, how often?

Business Structure and Setup:

  • Do I need an EIN (Employer Identification Number) before applying?

  • What's the difference between for-hire and private carrier authority?

  • Can I add authority types later if my business needs change?

  • Do I need a physical business address, or can I use a PO Box?

State-Specific Requirements:

  • Which states require additional permits beyond federal authority?

  • Do I need separate authority for each state I plan to operate in?

  • What's the difference between interstate and intrastate authority?

  • How do I determine if I need both federal and state authority?

Insurance and Bonding:

  • When exactly do I need to file my insurance with FMCSA?

  • What happens if my insurance lapses after getting authority?

  • Do I need a surety bond, and for what amount?

  • Can I change insurance companies after filing my authority?

Operational Compliance:

  • What records must I maintain once I have authority?

  • How soon after getting authority will I be audited?

  • What happens if I fail my New Entrant Safety Audit?

  • Can I operate with drivers who aren't employees (owner operators leased to me)?

Common Pitfalls:

  • What are the most common reasons applications get delayed or rejected?

  • What happens if I operate without proper authority?

  • Can I transfer my authority if I sell my business?

Remember, Foley is here to help! Simply fill out the short form below to get in touch with one of our compliance experts.

 

 

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