What is operating authority?
What applications you need to compile in order to get it?
Can you get your operating authority before purchasing the truck?
Hi, I’m Taylor from trucking dispatcher training company. In this video i’m going to talk about operating authority: what it is and how you get it. Operating authority as permission from the federal government to move people or freight across state lines for pay. The federal agency that regulates this is the federal motor carrier safety administration or FMCSA for short. In order to get your operating authority you got to have three things: the first thing you have to do is complete the MCS150. This is the application for getting your USDOT number and MC number. On this application they’re going to ask for your company information, name, address, contact information what type of operation you’re running, what type of equipment you’re going to be running etc. One thing to make note of in this application is that it
Doesn’t ask for specific truck information so in theory you can complete the MCS150 before you actually purchase a truck. Something else to note is immediately once you pay the 300 fee for the application you’re going to receive your dot number and your mc number but it’s important to know that the mc number is actually not activated yet so keep in mind that you might have those numbers in your possession but you still don’t have permission yet from the FMCSA to operate your trucking business across state lines for pay. The next thing you’ll need to complete is a BLC3 filing. This is a filing that basically shows that you have agents in every state that can accept notices on your behalf. The third thing you need for your operating authority is insurance and that’s going to be 750 000 worth of public liability. People have been asking on different strategy calls, they wanted to know at what point do they need to buy their truck, can they get their operating authority before they purchase a truck and the answer to that question is no – you can’t because in order to get your operating authority you have to have insurance and in order to have insurance you have to have a vehicle to actually ensure. At any point in step zero to step two you can purchase a truck whenever you want. However you can’t complete the third step of your operating authority until you actually purchase a truck. Hopefully this quick video was helpful and if it was please give it a thumbs up and let us know in the comments section. Also for more information check the description box below this video don’t forget to subscribe if you haven’t already done.
Thanks again for watching. SEE YOU SOON!
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