While many new carriers have driving history, going on your own brings a new set of complications to become successful.
For example, companies are required to have interstate operating authority (MC Number) in addition to the DOT Number if they do any of the following tasks:
- Operate as for-hire carriers (for fee or other compensation)
- Transport passengers in interstate commerce (or arrange for their transport)
- Transport federally regulated commodities in interstate commerce (or arrange for their transport)
To receive your authority, you must have insurance on file.
[Related: 7 STEPS START AND RUN A SUCCESSFUL TRUCKING COMPANY]
Sometimes, these new companies are not ready to finish their start-up process.
An application for operating authority becomes dismissed when the application has passed 90 days without action. But, there is a process to un-dismiss your application.
However, things are changing.
What is the current operating authority dismissal process?
Currently, an application for operating authority becomes dismissed when the application has passed 90 days without action.
This allows the applicant to request the application be un-dismissed so they can complete the application process when they are ready without submitting a new application and fee.
This un-dismissal request can be made at any time, to include up to a year after the application was dismissed.
If an application was dismissed after January 1, 2022, the applicant can submit a request for un-dismissal through July 31, 2023. You can contact CNS Licensing to help you with this process by calling 717.627.4334 or emailing us at firstname.lastname@example.org.
What changes to the un-dismissal policy is coming August 2023?
According to an FMCSA alert on their website, FMCSA will no longer accept requests from entities to un-dismiss their operating authority application. This will go into effect August 1, 2023.
As a result, FMCSA can review new applications to ensure applicants are fit, willing, and able to comply with Federal regulations and laws.
Once an application has been dismissed, per Federal regulations, the FMCSA cannot process it.
This means, beginning August 1, 2023, if the application is dismissed, the applicant will need to submit a new application and pay the appropriate fee ($300 per type of operating authority requested).
The FMCSA will notify current “Dismissed” applicants with a date from January 1 through December 31, 2022.
How To Start Off On The Right Foot
To receive your authority, you must have insurance on file. To avoid paying for insurance coverage you do not yet need, talk to your insurer to have it become effective approximately two weeks into the start-up process.
Getting your own operating authority is usually a straightforward process but there are many steps needed before and after you get your authority, which will take 21 days or more to get approved. We can assist you with each step individually or as part of a full compliance program which we will discuss more in a moment.
The following are some if the items you will need to complete:
- Register for a company name
- Obtain a Federal Employer Identification Number (EIN)
- Obtain insurance
- Title and register vehicle
- Set up IFTA and mileage tax accounts
- Obtain intrastate authority, if applicable
- Obtain Hazmat permits, if applicable
- File the Unified Carrier Registration (UCR)
- File the IRS Heavy Vehicle Use Tax
- Establishing driver qualification Files, equipment maintenance schedules, and equipment files
- Pass your first annual vehicle safety inspection
When you are ready to start moving freight, cash flow is often a problem because it may take 45 to 60 days before getting paid for your first load. It is best practice for new carriers to have operating capital to sustain your business for up to two months.
Our PSM Motor Carrier Program includes:
- ELD management
- Driver Qualification File Management
- New driver on-boarding
- Driver safety meetings
- CSA score management
- Policies and handbooks
- Vehicle maintenance
- and more
Do you still need commercial trucking insurance?
It never hurts to get a quote and try saving money on your insurance premiums. Give our sister company CNS Insurance a call anytime to discuss getting a quote.
Before we can get you an estimate, we are going to need some information.
Fill out a complete quote or quick quote to get started.
If you have any questions or concerns, please call us at 800.724.5523 or email email@example.com.