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March 31, 2022

Secure Your MC Number: Simplify Your Trucking Needs

There are a few names that are given to your trucking authority. These are MC number, motor carrier number, ICC number, trucking authority, and interstate authority. All of these terms mean the same thing and if you are working as a “for hire” carrier, and intend to cross state lines, you are going to need this document. The feds in Washington are going to grant you this authority. Some types of loads might also be exempt from this authority and the most common examples of the same include wooden logs, livestock, and bulk grain. If you want to haul these goods across state lines, you will not need any authority from Washington. 

You might still need to check with your home state for any registration requirements that you might have to fulfill if you want to transport these loads into other states.

You must have an IRP plate and IFTA stickers to transport these loads. Then you will also have to register for a unified carrier registration program if you want to cross state lines with these exempt loads. Now let’s have a look at a few related terminologies and definitions that you must be aware of:

Understanding Authority Requirements

You want to get your motor carrier authority and for that, you will need to have a US DOT number. The next step is to register for your BOC-3 list of process agents. You must also carry A personal injury insurance cover on you including property damage liability insurance as well. The latter should be on each of the power units (attached) that you are carrying across state lines. Once you are able to procure your trucking authority or MC number, you will have to file for your unified carrier registration right away.

Defining The Timeline

The process of getting your trucking authority or MC number is very simple. It is going to take somewhere between 21 and 24 days. It might take you a little longer to obtain your trucking authority if you delay the submission of important documentation. Using a credit card or debit card is a good option because that speeds up the process. You will also have to provide them with proof of liability insurance and the BOC-3 list of process agents. If you have used a check to pay for this application, the process might get delayed by several weeks.

Docket Number or MC Number

You will be given a docket number. This is going to become your MC number eventually and will also be used as a reference number when you are applying for the MC authority. Once you are able to procure your authority, the docket number will be used as your motor carrier operating authority number. All the documentation for the application process must be submitted without any delay if you want to procure your operating authority within 24 days. 

You cannot start hauling any loads until you have obtained this authority. Once you are granted the MC number, you will also be issued a letter of authority. You must carry this in your vehicle. You will also get a certificate for common authority in addition to a permit that is issued for contract authority. It will take at least 7 to 10 days for you to receive the letter once you are granted the authority. In order to start running with loads, you must have that letter in your vehicle at all times.

What Are Your Liability Insurance Requirements?

You must pay attention to the load of the vehicle and the combined weight (the load in addition to that of the vehicle) which can be the truck or the trailer. If it is 10,000 LBS or more than that, you must carry at least $750,000 in liability insurance. This applies to non-hazardous loads. If you are carrying any hazardous loads regardless of the weight, the requirement is going to increase to 1 million dollars. It may increase to 5 million dollars in liability insurance in some cases. This depends entirely on the type of hazardous loads that you are hauling across state lines. 

Pay attention to the weight of the loaded truck and the attached trailer or any other combined apparatuses again. If it is under 10,000 lbs, you are only required to carry a minimum of $300,000 in liability insurance.

Cargo Insurance – Is It Necessary?

Coming to cargo insurance, you must understand that you will have to carry at least $5,000 in cargo insurance with your common authority. If you are carrying contract authority, you do not need to show proof of cargo insurance. If you do not have any cargo insurance cover, get in touch with the shipping company for which you are hauling loads. They will be in a position to provide you with adequate cargo insurance. If the loads that you haul include sand or gravel, there should be no problem at all. For any regular loads, your shipment company might be a little hesitant in providing cargo insurance.

When Can You Become A Corporate?

You can use your personal name for your trucking authority. You can also attach a “doing business as” with your personal name. In case you decide to use a DBA name, you can put the same name on your truck signs. This name does not have to include your personal name. You can also use the limited liability company name or the incorporated name in this case. For that, you will have to register your LLC or incorporate your trucking company. 

Get in touch with the secretary of state of your home state. Make sure that the name with which you register your company is completely unique. This is going to make sure that no other company has been registered with the same name with the secretary of state of your home state.

Employment Identification Number

If you are an owner-operator, and you drive vehicles with plates of more than 54,000 lbs, you must already have a federal ID number. In such a case, if your employer identification number is in your personal name and if you want to establish an LLC, you are also going to need a new employer identification number. This is because the LLC or the corporation you are trying to incorporate will become a distinct legal entity. When you are about to apply for your MC authority and if you also intend to incorporate a company or become an LLC, you will need a new employer identification number.

Importance Of License Plates And Fuel Tax For Your Trucking Authority

When you are finally able to procure your ICC or MC authority number, you will have become a carrier. If you haven’t done that already, you will require an IRP license plate. You will also have to register for IFTA fuel tax

This applies to your trucks and tractors, trailers, and other vehicles whose weight is above 26,000 LBS. If you operate 3 or 4 axle trucks, regardless of whether the weight is 26,000 lbs or below that, if you intend to cross state lines, you must have an IRP license plate for each one of your vehicles. After getting registered for IFTA fuel tax, you must submit your quarterly IFTA fuel tax reports regularly.

Weight Distance Tax 

You must be aware of the 4 weight distance tax states that are New York, Kentucky, New Mexico, and Oregon.

  1. If you want to enter New York, the gross vehicle weight of your truck or trailer or any other combined apparatuses being above 18,000 lbs, you must register for the New York Highway use tax number.
  2. If you want to enter Kentucky, you will have to apply for a Kentucky KYU number. This applies to you if your plate is 60,000 lbs or more. 
  3. If you want to enter New Mexico, you must pay at the port of entry. You can also pre-register with New Mexico before you cross the state lines. 
  4. Oregon does not have a fuel tax. There is just one weight distance tax which you can either pay at the border or register with the state for a monthly tax charge.

FAQ

What Happens If You Fail a DOT Inspection?

If the vehicle or driver is deemed unsafe, they may be placed out of service, meaning the vehicle cannot operate until all violations are properly corrected.

Who decides which level of inspection to perform?

Both the Commercial Vehicle Safety Alliance (CVSA) and the Federal Motor Carrier Safety Administration have a part in DOT inspection levels. The CVSA develops the criteria and sets the procedures for every inspection level. The FMCSA establishes overall regulations and determines which vehicles must be inspected.

How often do DOT inspections happen?

DOT inspections can happen at any time. They most commonly happen during roadside stops and weigh stations. Carriers with higher risk, poor safety records, or hazardous material may be inspected more frequently.

What documents are required during an inspection?

Documents required during an inspection include but may not be limited to:

  • State driver’s license or commercial driver’s license
  • Medical examiner’s certificate
  • Record of duty status
  • Vehicle registrations
  • Periodic inspections document for all vehicles being operated
  • Shipping papers or bills of lading
  • Information for hazardous materials being transported
  • Proof of insurance

What are common DOT inspection violations?

According to the FMCSA, the 5 most cited roadside violations are:

  1. False Report of Driver’s Record of Duty Status: log falsification providing inaccurate or intentionally altered duty-status information.
  2. No Record of Duty Status (ELD Required): using a commercial vehicle without the required electronic logging device or valid time records.
  3. Inoperable Required Lamp: crucial lights (headlights, brake lights, turn signals, etc.) are not functioning properly.
  4. Operating a Commercial Motor Vehicle Without a Commercial Driver’s License (CDL)
  5. Operating a Commercial Motor Vehicle Without Proof of a Periodic Inspection: failure to meet FMCSA the maintenance standards of a required annual inspection.

Why is updating VMT important for compliance?

VMT is tracked to determine fuel tax obligations (Vehicle Miles Traveled Tax) used for road maintenance and improvements. Trucking companies must keep accurate records of VMT to ensure they pay the correct amount of taxes.

How often should VMT be updated?

For motor carriers VMT must be updated every two years along with the MCS-150 form for the Biennial Update.

Can VMT be tracked automatically with technology?

Yes, Electronic Legging Devices (ELDs), Fleet Management Apps, and Mileage Tracking Software are all technological advancements that can simplify the process of VMT tracking.

How does VMT affect taxes and fuel reporting?

Accurate VMT records help document mileage for business-related tax deductions, ensuring compliance with IRS regulations. It also supports fuel tax reporting by tracking the miles each vehicle travels in different jurisdictions, which is essential for state and federal fuel tax calculations. Proper tracking reduces errors, prevents penalties, and provides a clear record of operational costs.

How do I know when my Biennial Update is due?

  • Your filing schedule depends on the last two digits of your USDOT number. The last digit corresponds with what month the form needs to be filed in. January is 1, February is 2, March is 3, etc. The next to last digit determines the year (odd-numbered year or even numbered year). For example, DOT number 1234567 files their biennial update in July (7) of every even year (6). Contact us today to see if you’re due.

Does the Biennial Update cost money to file?

While you can file your Biennial Update yourself for no cost through FMCSA. The process can often be confusing and time-consuming. Our team can handle your filing for you, simplifying the process for you.

Do intrastate carriers need to file the update?

Yes, even if carriers stay within state lines, a biennial update is still needed for their USDOT number.

What happens if I miss my filing deadline?

  • Failure to complete biennial update to FMCSA can be subject to fines with a maximum penalty of $10,000. If your update is past due, you can still file it to restore your compliance status. Contact us today to file your form! https://dotcompliancegroup.com/bu-update/ 

What are the new FMCSA rules in 2025?

  1. Civil Penalty Amount Increases
  2. Drug & Alcohol Clearinghouse Becomes Exclusive Source for checking driver history.
  3. ELD Technology Required
  4. SMS (Safety Measurement System) Modernization
  5. Crash Preventability Determination Program Expanded

When do the 2025 FMCSA regulations take effect?

The confirmed dates these regulations take effect is May 30, June 23, October 1, 2025.

How can trucking companies prepare for these changes?

Regularly reviewing your Safety Measurement System (SMS) scores and maintaining personal checklists for inspections, driver qualification files, and drug and alcohol testing helps catch issues before they affect audits. Partnering with DOT Compliance Group streamlines filings, reporting, and ongoing monitoring, taking the guesswork out of FMCSA regulations and keeping your operation audit-ready year-round.

What Triggers a DOT Compliance Review?

A DOT compliance review is triggered when FMCSA wants to ensure a carrier is following safety regulations. Common triggers include high SMS safety scores, a history of crashes or violations, and previous noncompliance. Staying proactive with accurate records, driver files, and regular internal audits helps reduce the likelihood of a review.

Where can I get help with FMCSA filings?

DOT Compliance Group can assist with any help or questions you may have about FMCSA filings. Call 972-476-9962.

How long are violations kept on record?

According to the Clearinghouse rules, drug and alcohol violations remain in the FMCSA Clearinghouse for five years, provided all requirements (such as completing the return‑to‑duty process) have been met before that period ends.

What if an employer makes a mistake in reporting?

In practice, correcting an employer reporting error typically involves identifying the mistake in the database and then submitting a request for correction through the Clearinghouse portal or FMCSA procedures, so the record reflects accurate information. 

What are the penalties for non-compliance?

FMCSA rules allow civil penalties for non‑compliance, and separate authorities note that employers who fail to meet Clearinghouse requirements may face civil fines or criminal penalties under federal regulations.

Do trucking companies check the Clearinghouse?

Yes — trucking companies check the Clearinghouse as part of their hiring and compliance process. The FMCSA Clearinghouse is designed so employers can search a driver’s drug and alcohol violation records before permitting them to operate a commercial vehicle. Employers are required to conduct these queries for both prospective and current drivers as part of compliance.

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