Can You Transfer an MC Number?

If you've ever wondered, "Can you transfer an MC number?" know that this is one of the most frequently asked compliance questions across the trucking industry today. FMCA Filings is your go-to source for accurate information on regulatory compliance in the trucking industry, and before we answer the lead question, let's quickly cover what an MC number is and what it does. 

The Federal Motor Carrier Safety Administration (FMCSA) issues Motor Carrier (MC) numbers as operating authority to for-hire carriers engaged in interstate commerce. The number authorizes your business to legally transport regulated commodities across state lines for compensation.   

Why Does Transferring Motor Carrier Authority Get Complicated?

Transferring your motor carrier authority isn't as simple as signing over a license plate. The MC number is not a standalone asset. It's fundamentally connected to the legal entity, whether an LLC, corporation, or sole proprietorship, that originally applied for and maintains it. 

This means the authority is linked to all of your company's essential regulatory data, including:

• Compliance history
• Insurance filings
• Safety records 
• Overall registration details 

Here's where many carriers run into trouble. Some attempt what amounts to selling or buying an MC number directly by advertising the number for sale or allowing another company to operate under it informally. 

These arrangements can easily violate FMCSA rules regarding MC number transfers and create serious legal exposure for everyone involved, including liability for accidents or cargo claims. 

Keep in mind that you are not selling the number itself. You are transferring motor carrier authority tied to a specific business entity. Keeping that distinction crystal clear is critical for staying compliant and protecting your business interests.

The timeline for obtaining an MC number or completing a transfer can vary significantly depending on your unique situation, and a missed filing can delay operations or even derail a merger or acquisition. 

How Authority Can Legitimately Change Hands

There are a few well-recognized scenarios in which MC authority can legitimately transfer to a new owner.

The most common is a full company sale. If a buyer purchases your entire LLC or corporation, including its assets, liabilities, and legal identity, the MC authority travels with the company. 

Because the legal entity holding the authority remains intact, the authority stays active and ownership transfers accordingly. This approach is the cleanest and most compliant path for transferring motor carrier authority.

Mergers and acquisitions are another avenue. When one carrier acquires another, the acquiring company records the authority transfer. Both parties submit documentation reflecting the change in ownership, and the authority continues under new management without a brand-new application.

Finally, a formal Transfer of Operating Authority Registration is available when the authority needs to move to a different entity. Both the transferor and transferee must submit documentation confirming the ownership change, updated company information, and required filings. This ensures that the new owner takes on full responsibility for compliance.

When a Transfer Simply Won't Work

Not every situation qualifies. If a sole proprietor holds MC authority as an individual rather than through a business entity, transferring it will be extremely difficult, if not impossible. The authority belongs directly to that person, not to a separate legal structure, making ownership transfer a real obstacle.

Asset-only sales also fall outside the scope of a transfer. Buying trucks, trailers, or customer contracts without purchasing the company itself does not bring the MC authority along. In that situation, the buyer must apply for their own authority and obtain a new USDOT number.  

What About Reactivating or Reinstating an MC Number?

Sometimes it's necessary to deal with reinstatement for an inactive company before a sale. Reactivating or reinstating an MC number is possible when authority goes inactive due to:

• Lapsed insurance
• Bond cancellation
• Failure to maintain required filings

Reinstatement involves addressing outstanding compliance requirements, like filing updated proof of insurance or submitting a BOC-3 process agent designation.

Let FMCA Filings Guide You Through the Process

FMCA Filings is a nationwide compliance service dedicated to helping motor carriers, brokers, and trucking businesses manage their operating authority with confidence. Our knowledgeable team understands the filing requirements inside and out and is ready to walk you through every step using our convenient, easy-to-use online portal.

So, can you transfer an MC number? Whether you're navigating a business acquisition or looking into renewing an MC number after a period of inactivity to prepare for a sale, compliance details matter at every step. 

Don't go it alone. Connect with FMCA Filings today to learn more.