Active Authority Demystified: Comprehensive Insights Into the USDOT Number System

Maintaining active authority means keeping your trucking business fully operational. Whether you have yet to register for a USDOT number or are a seasoned supervisor, you can improve your compliance by refreshing your memory regarding what you should do to maintain your permits. Federal Motor Carrier Authority Filings developed the following insights to refresh your knowledge about operating authority. 

What Does Active Authority Mean in the Trucking Industry?

Active operating authority allows your drivers to legally operate their commercial vehicles within your state of operations and in other regions. The Federal Motor Carrier Safety Association grants operating authority to compliant carriers via permits and identification numbers. The most important numbers are USDOT and MC numbers.

The USDOT number allows trucking authorities to identify carriers and drivers while updating and accessing pertinent safety information. Most states require carriers to obtain a USDOT number at minimum. After acquiring a DOT number, you must obtain a motor carrier number.

An MC number allows its carrier to participate in interstate shipping activities. You may not need an MC number if you solely operate within your headquarter’s state. However, operating without MC authority limits your drivers’ capabilities. They cannot legally cross state borders — even for detours — without it.

Why Do You Need Operating Authority?

You need active trucking authority to participate in most areas of the transportation industry. Various retailers, shippers, brokers, and other critical trucking facilitators will avoid carriers that lack essential authority permits. You could also face additional penalties, including:

• Criminal charges
• Expensive fines
• Reputation damage
• Deactivation of any remaining authority
• Fewer business opportunities

Adhering to and expanding your authority protects your carrier and fleet from such consequences. 

Types of Operating Authority

The type of operating authority you need depends on your role within the trucking industry. Some common types of authority include:

• Motor carrier authority: This type of authority typically applies to drivers and carriers, though brokers and forwarders may also require it. 
• Broker authority: Brokers connect carriers with shippers, serving as a go-between for each entity. 
• Freight forwarder authority: Like brokers, freight forwarders serve as go-betweens. However, they connect the shippers with the receivers at a destination. 
• Domestic and non-domestic: Carriers based in the US and other North American countries often cross international borders to transport goods to other countries. Certain types of authority assist them. 

How to Apply for Operating Authority

Applying for active authority involves attention to detail. You will gather documents proving your qualifications as a carrier. This might include:

• Individual files with information about each driver
• Proof of partnership with a qualifying program that tests for substance use
• Any prior certification copies
• Basic company information
• Proof of insurance

Then, submit these documents to the correct authority association and await your first safety audit as part of the New Entrant Safety Assurance Program. Once you pass the program’s requirements, you only undergo future audits following accidents and compliance failures. 

Structuring a Business

Before applying, you must structure your trucking business. Your company’s structure will determine the type of authority it needs. What does the average carrier structure look like?

• Company type: Is your company an LLC, C-Corp, or another variation? Your company type will determine your tax status. 
• Cargo variety: Will you haul hazardous materials, household goods, or raw materials? These specifics determine the certifications you’ll need. 
• Insurance coverage: You will need a minimum amount of coverage according to your company and cargo type to qualify for authority. 

After sorting out the structural basics, you can apply for USDOT and MC numbers, laying the groundwork for your operating authority.  

Other Required Forms

Once you obtain your USDOT and MC authority, you can expand your authority as needed. This arduous task often requires a digital portal service to ensure the enclosed application documents arrive on time. Learn about the most common forms below. 

Submit BOC-3

A trucking company needs a process agent to accept legal documents and summonings on its behalf. The Blanket of Coverage paperwork assigns a process agent to your company. Complete the BOC-3 with basic company information and the states in which you’ll operate. 

UCR Application

The Universal Carrier Registration permit ensures you have adequate, active insurance coverage. You’ll provide your USDOT and MC numbers and information regarding your insurance coverage during the process. 

Fee Payment

Trucking companies must occasionally pay fees to obtain state-specific permits and operating authority according to the region. These fees help repair highways, interstates, and other infrastructure necessary for commerce.

Activate Your Authority Through FMCA Filings

FMCA Filings makes the application process much easier. If you complete the paperwork alone, you’ll face hours of inputting the same information over and over before tracking down the correct addresses to send it. With FMCA Filings, you can easily access and update your company information to acquire any level of active authority you need, including a DOT number for intrastate and interstate operations.