DOT authority is the legal permission required by the federal government for commercial operations in the transportation industry. This designation is necessary for companies that transport cargo or passengers across state lines or haul certain regulated commodities. Securing this authority is a structured process designed to ensure safety and accountability.
The authorization relies on two distinct identifiers issued by the Federal Motor Carrier Safety Administration (FMCSA). The USDOT Number serves as the carrier’s primary safety and compliance identification record. The Motor Carrier (MC) Number grants the actual permission to operate for hire. Navigating the application process for both identifiers is the first major step toward establishing a compliant trucking business.
Determine If You Need Authority
A company’s operational profile dictates whether federal authority is required. A USDOT number is required if the vehicle’s Gross Vehicle Weight Rating (GVWR) or Gross Combination Weight Rating (GCWR) exceeds 10,001 pounds. This requirement also applies if the carrier transports nine or more passengers for compensation or 16 or more passengers without compensation. Additionally, transporting hazardous materials that require placarding mandates federal registration, regardless of the vehicle’s weight.
The need for Motor Carrier (MC) operating authority is determined by operations across state lines. Any company engaged in “for-hire” transportation—paid to move cargo or passengers from one state to another—must secure an MC number. Carriers operating strictly within a single state (intrastate commerce) typically only need the USDOT number and state-level permits. The distinction between interstate and intrastate movement determines the full scope of required federal compliance.
Register for Necessary Identification Numbers
Securing the foundational identification numbers is the initial step for legal operation and federal tracking. The USDOT Number is the universally recognized identifier assigned by the FMCSA, used for monitoring a carrier’s safety performance during inspections and audits. New applicants must file the MCS-150 form through the FMCSA’s online Unified Registration System (URS) to receive this number.
Acquiring the USDOT number is mandatory before applying for operating authority. This registration establishes the company’s profile and provides the agency with data on the fleet size and cargo type. The business must also obtain an Employer Identification Number (EIN) from the IRS. The EIN is required for establishing a formal business entity, managing tax obligations, and is a prerequisite for FMCSA application forms.
Apply for Motor Carrier Operating Authority
After securing the USDOT Number, the applicant requests the MC operating authority, which grants permission to haul freight for compensation across state lines. This requires completing the comprehensive application on the FMCSA’s Unified Registration System (URS) platform. The prospective carrier must select the correct type of authority based on their business model, as various designations exist.
Common types include Motor Carrier of Property (for-hire) and Motor Carrier of Passengers. Separate authorities exist for specialized roles such as Motor Carrier of Household Goods, Freight Forwarders, and Brokers, each with distinct compliance and insurance requirements. For instance, a Common Carrier serves the general public under a standard tariff, while a Contract Carrier operates under specific agreements with individual shippers.
Applicants must pay a filing fee for each authority requested. After submission, the application enters a mandatory 21-day protest period, allowing the public to challenge the request. This waiting period is a standard administrative step before the FMCSA grants the operating authority. Receiving the MC number provides the legal standing to engage in interstate, for-hire transportation.
Fulfill Mandatory Financial Responsibility Requirements
Activating the operating authority requires demonstrating adequate financial responsibility through specific insurance filings. The FMCSA mandates minimum levels of Bodily Injury and Property Damage (BIPD) liability insurance. The minimum coverage amount is determined by the cargo type; non-hazardous freight typically requires $750,000 in coverage.
Carriers transporting certain hazardous materials face significantly higher minimum requirements, sometimes reaching $5,000,000. The carrier’s insurance provider must electronically file the proof of coverage directly with the FMCSA. For general freight carriers, this proof is submitted using the BMC-91 or BMC-91X form, confirming the policy meets federal minimums.
Broker and freight forwarder applicants must demonstrate financial security, usually through a $75,000 surety bond or trust fund. This is filed using the BMC-84 or BMC-85 form, which ensures funds are available to cover claims in the event of non-performance or financial default. The FMCSA will not grant the MC authority until these financial responsibility forms have been correctly filed and processed.
Complete Legal and Inter-State Registrations
Two distinct legal filings are necessary to activate the operating authority and establish compliance across state jurisdictions.
Process Agent Designation (BOC-3)
The first filing is the designation of a Process Agent, formalized by filing the BOC-3 form with the FMCSA. A Process Agent is a representative located in every state where a carrier is authorized to operate or through which it travels, designated to receive legal documents on the carrier’s behalf. This requirement ensures that the carrier can be legally served with court papers or summonses in any state where an accident or dispute may arise. The BOC-3 form is typically filed by a third-party service provider.
Unified Carrier Registration (UCR)
Interstate carriers must also register annually under the Unified Carrier Registration (UCR) program. The UCR is a state-administered fee structure that supports state enforcement efforts. The fee amount is based on the size of the carrier’s fleet (the number of commercial motor vehicles operated). Paying the annual UCR fee is mandatory for all for-hire motor carriers, private carriers transporting exempt commodities, and brokers operating in interstate commerce.
Establish Necessary Safety and Compliance Programs
Before dispatching the first load, the new carrier must implement several operational safety and compliance programs required by federal regulation.
Driver Safety Programs
A mandatory Drug and Alcohol Testing program must be established for all Commercial Driver’s License (CDL) holders. This program must include pre-employment, random, post-accident, and reasonable suspicion testing protocols. Additionally, all drivers operating commercial vehicles must utilize an Electronic Logging Device (ELD) to accurately record their Hours-of-Service (HOS) and ensure compliance with federal limits on driving time.
Interstate Registration
For carriers operating vehicles over 26,000 pounds Gross Vehicle Weight, registration for the International Fuel Tax Agreement (IFTA) and the International Registration Plan (IRP) is necessary. IFTA simplifies the process of reporting and paying fuel taxes across multiple states, while IRP provides a consolidated method for registering the vehicle fleet with various state jurisdictions. Both systems are managed through the carrier’s base state and are designed to streamline inter-state travel administration.
New carriers should also immediately begin preparing for the New Entrant Safety Audit, a comprehensive review of compliance documentation conducted by the FMCSA within the first 18 months of operation.
Maintain Compliance and Begin Operations
Before commencing operations, confirm that the operating authority status has officially changed from “Pending” to “Active” on the FMCSA’s website. This confirmation signifies that the 21-day protest period has passed and all necessary insurance and legal filings, including the BMC-91 and BOC-3, have been processed. Operating before the MC authority is officially active constitutes illegal operation and can result in fines.
Maintaining compliance is an ongoing process. Carriers must ensure their liability insurance and surety bonds remain current, as a lapse in coverage results in immediate revocation of the operating authority. Non-negotiable administrative tasks include the annual renewal of the Unified Carrier Registration and the biennial update of the MCS-150 form. Consistent record-keeping and adherence to safety regulations are necessary to navigate the New Entrant period and ensure long-term viability.