How to Run Your Own Authority as an Owner-Operator

When it comes to trucking and the freight business, it is so important for truckers to know what their authority is and to try to get their own authority. Knowing what trucking authority is and how it works can make a big difference and can help you to be your own boss as a trucker.

What Is Trucking Authority? Should You Be Getting Your Trucking Authority?

Trucking authority or operating authority is also known as the motor carrier’s right to operate their truck as a commercial vehicle to transport both goods and people for hire. Trucking authority gives you the right and permission by the government to move goods and to get paid to do so. You need to follow a few steps to help get your trucking or operating authority.

First, you need to decide the name of your business and check to make sure that there are no other businesses by that name. You most often do this through the Secretary of State’s office. You then need to decide on the structure of the business and get an LLC. Your next step is to get an EIN, or employer identification number, for your taxes.

After that, you need to get preapproved for your liability and cargo insurance. You can then apply for your authority and get your UCR permit, your HVUT, and your IRP, and set up your IFTA account. These are all steps you can get help with if needed, to ensure that the entire process is done correctly.

Different Types of Motor Carrier Categories

Several motor carrier categories affect the type of authority you need. Different types of motor carrier categories are carrier of property, household goods, broker of properties, broker of household goods, enterprise or international carrier, motor passenger carrier, and more.

Not all truckers need trucking authority. Those that do are interstate carriers that operate in more than two jurisdictions or states, that exceed 26,000 pounds, or that have more than three vehicles. These are the stipulations for having your trucking authority. If you are unsure of whether you need your trucking authority, it’s best to contact your state government to see if you need to obtain it.

It is never a bad idea to have your trucking authority, as you may need it in the future, or you may find out that you need it and not have it after you have begun operations.