How do I get my own authority? There are a few steps you must take to be eligible for a license. Getting your own authority means getting the government’s okay to haul freight. OOIDA’s authority department has resources to help you through the process. One of these resources is Heather Brown, who has been with the association for seven years. This course will help you learn the federal and state identifiers and permits required by carriers.
You will need to obtain a permit from the Federal Motor Carrier Safety Administration. It is necessary to obtain a permit to transport goods for profit. There are two types of authorities: contract authority and common authority. A contract carrier is licensed to haul freight only for a firm that has a contract with it. A common carrier is permitted to transport legal goods for any entity. It must have $750,000 liability insurance and cargo insurance.
When you start your business, you should establish a corporate structure. Obtain an Employer Identification Number (EIN) from the IRS. You will use this number when applying for your authority. It is important to secure an Employer Identification Number to protect your identity. Also, make sure you purchase liability insurance coverage and apply for your U.S. DOT number. You should also fill out an application for an operating authority. Get in touch with Compliance Service Bureau to apply for FORM BOC3.
A good rule of thumb when looking for a lease is to choose a company that has been around for a while. Apply for DRIVER QUALIFICATION FILE. This will give you access to relationships and loads without having to rely on a load board. If you don’t know the company, it won’t be easy to lease from them. Instead, choose one with a long history and a proven track record. This strategy is more advantageous than getting your own authority.