• 1 NW OOIDA Drive, Grain Valley, MO 64029

  • Getting your own authority requires more than just determining your type of operation

    You will need start-up money for insurance, permits, your base plate, equipment and enrollment in a drug and alcohol testing program.  OOIDA also strongly recommends before you haul your first load under your new business you have at least 60 days worth of operating capital set aside.  You will need to name your company, determine if you need to be incorporated, and be preapproved for insurance (BIPD & Cargo; Broker Authority requires a surety bond or trust).  Most importantly you need to determine where you are going to get your freight; are you going to haul through shippers or brokers?

    In addition to you own base plate, you will to need set up your IFTA account, secure your UCR permit, and pay your Heavy Highway Use Tax (2290). There are also several states that require state issued permits if you will be doing business in the state; those states are New York, New Mexico, and Kentucky, Oregon requires a permit and a bond. Let’s not forget about Intrastate Authority; several states require this additional authority if you are going to be making point to point pick-ups and deliveries within the state.

    Now that you are a business owner you have record keeping responsibilities.  These responsibilities to name a few can include maintaining driver qualification files/employee records, safety records, HOS records, as well as accident reporting and maintenance records.  Your compliance with these requirements will be checked during your mandatory “New Entrant” audit which will take place within your first 18 months of doing business.

    Types of Operation:

    • Common/Contract
    • Broker
    • Freight Forwarder
    • Private
    • Exempt for Hire
    • Household Goods
    • Hazmat
    • Intrastate

    Federal Regulation requires you to have your new company enrolled in a Drug and Alcohol Testing Program.  This enrollment will include you if you hold a CDL as well as any of your drivers present and future.  As the motor carrier you are required to maintain all Drug and Alcohol Testing Program records and reports.  You are also required to go through a 120 minute Supervisory Training Course. As part of the enrollment process you will be required to assign a DER (Designated Employee Representative) for your company.

    Sound a little overwhelming?

    Don’t panic, the experienced staff at OOIDA is here to assist you.  All the requirements listed above can be fulfilled by simply calling 816-229-5791. Our authority unit is available to assist you in meeting these requirements, answer your questions and has developed a new system that eliminates the hassle, saves you time and most importantly saves you money.

     

    Call an OOIDA Authority Agent today and ask about One-Stop Shopping. CMCI is available to insure your full compliance with all federal drug and alcohol testing requirements.  They can be reached at 816-229-5791.

     

    Frequently Asked Questions

    Approximately 4 weeks to complete the process.

    You need to establish a company name, register it with your state if required, obtain a federal tax id number from the IRS, business address, phone number, etc.

    You won’t need to file your insurance with FMCSA for about 12 business days after receiving the MC & DOT numbers. After that time frame and your insurance is accepted by FMCSA, your authority will become active within the next 3-6 days.

    You are not required to own the truck before you file for authority; however you will need insurance on a truck before the process can be completed and the authority is made active.

    You need to call that company and ask them what is included so you can compare that to the packages that OOIDA offers. Our prices include obtaining your MC & USDOT numbers, necessary state permits, BOC filings, 1 year in the random drug & alcohol program, a Drivers Qualification and more.

    If you are not ready to activate the numbers right away, you need to keep in mind that an application for operating authority would be dismissed if an applicant fails to provide evidence of financial responsibility (proof of insurance) and a designation of process agent Form BOC-3 approximately 90 days from the date of filing of the application. If your application is dismissed, you will need to submit a new application. This will start the process over again, re-paying the fee and going through the 4 week time period again. However you will keep the same MC & DOT numbers.

    OOIDA cannot advise you if you should form a corporation or LLC. We suggest that you talk to an accountant or attorney in your state so they can help you decided if it would be necessary for your company.

    You will need to check on prices for your insurance. You will also need your apportioned plates and IFTA from your base state once the authority goes active. OOIDA has these services available in most states. If you currently have a USDOT number that is inactive, it needs to be activated and a PIN ordered before the authority can be started. If you do not have a PIN you can call 1-800-832-5660 and request a PIN to be mailed to you. However if you the mailing address on the DOT number is not current you will not received the PIN. DOT only mails to the address that is currently attached to your number.

    You are required to carry a minimum $750,000 primary liability insurance or if you are hauling cars, $1,000,000 minimum. OOIDA Insurance agents can provide a quote for you.

    It is not advisable for you to do this. Because you would have your own authority and maintaining your insurance, there would be an issue of double insurance coverage in the case of an accident. Also you would need the ability to change the information on your truck from your company name/ DOT # to the carriers name/DOT# depending on which company you would be hauling for at the time. Most carriers will not allow you to lease to them with your own authority and most insurance companies would not allow this type of operation either.

    You can actually keep those same numbers and reinstate your old authority if you have had that authority active in the past. That process is cheaper and takes approximately 2 weeks.

    Yes. Within the first 18 months of have your authority, DOT will conduct a Safety Audit on your company. OOIDA will provide you a check list to guide you through that audit.

    The annual fees will include your plates, IFTA, UCR, New Mexico and Oregon Permits. Kentucky stays active until you cancel the account and New York issues permits on a 3-year schedule. Your MC & USDOT numbers remain active as long as you maintain your insurance on file with FMCSA.


     

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