Have questions about managing DOT compliance in your business? We can help! Click through the FAQ below for a list of some of the most common questions we get at FCCR. If you can’t find the answer you’re looking for, please contact us, and one of our compliance specialists will be happy to assist you.

Biennial Update (MCS-150)

What Is the Biennial Update?

The Federal Motor Carrier Safety Administration (FMCSA) requires all companies with a USDOT number to update their information every two years by submitting the MCS-150 form, also known as the Motor Carrier Identification Report. This update is mandatory, even if your company’s information hasn’t changed. Some states may have additional requirements, such as annual updates for vehicle registration renewals.

What Happens If You Don’t Update Your MCS-150?

Failing to submit your biennial update can lead to serious consequences:

• Deactivation of Your USDOT Number: Your USDOT number may be deactivated, which means you cannot legally operate commercial vehicles.​
• Civil Penalties: You could face fines of up to $1,000 per day, with a maximum penalty of $10,000.

When Is the MCS-150 Submission Deadline?

The deadline for submitting your biennial update depends on your USDOT number:​

• Year: Look at the second-to-last digit of your USDOT number. If it’s odd, you must file your update in every odd-numbered year. If it’s even, file in every even-numbered year.​
• Month: The last digit of your USDOT number determines the month your update is due:​
  • 1: January
  • 2: February
  • 3: March
  • 4: April
  • 5: May
  • 6: June
  • 7: July
  • 8: August
  • 9: September
  • 0: October​

For example, if your USDOT number is 123456, the second-to-last digit is 5 (odd), and the last digit is 6. Therefore, your biennial update is due by the last day of June in every odd-numbered year.

What Do I Need to Update the MCS-150 Form?

To complete your biennial update, you’ll need the following information:

• USDOT Number: Your unique identifier assigned by the FMCSA.​
• USDOT PIN: A personal identification number required to access your account. If you don’t have your PIN, you can request it through the FMCSA website. ​
• Employer Identification Number (EIN) or Social Security Number (SSN): Used to verify your company’s identity.​
• Company Official Information: Details about the person authorized to make updates on behalf of the company.​

If you need assistance obtaining your USDOT PIN or completing the update, FCCR’s compliance specialists are available to help.

BOC-3 (Designation of Process Agents)

What Is a BOC-3 and Who Needs It?

A BOC-3, which stands for “Blanket of Coverage,” is a form filed with the Federal Motor Carrier Safety Administration (FMCSA) that designates process agents in each state. These agents are authorized to receive legal documents on behalf of transportation companies, such as motor carriers, brokers, and freight forwarders. Filing a BOC-3 is a mandatory step to obtain operating authority from the FMCSA.

How Do I File a BOC-3?

For motor carriers, only a process agent can file the BOC-3 form on your behalf, and it must be submitted electronically. Brokers or freight forwarders without commercial vehicles may file the form themselves.​

Many companies choose to work with a “blanket process agent,” a single entity that provides process agent services in all 50 states. This approach simplifies the process and is often more cost-effective than appointing individual agents in each state.

How Long Does It Take to File Form BOC-3?

Once the BOC-3 form is properly completed and filed electronically with the FMCSA, operating authority documents are typically sent out within 3–4 business days. If 10 or more business days have passed since the grant date and you have not received the operating authority document, you should contact the FMCSA. ​

Can I Act as My Own Process Agent?

You may act as your own process agent only within your base state, provided you have a physical address where legal documents can be received during regular business hours.

When Should You Refile a BOC-3?

You should refile your BOC-3 form if there is a change in your company’s name, transfer of authority, or other significant changes to the information provided on the original BOC-3. Failure to update this information can result in the suspension of your operating authority.

California Motor Carrier Permit (MCP)

Who Needs an MCP?

In California, you must obtain a Motor Carrier Permit (MCP) if you:​

• Operate as a ‘For-Hire’ Carrier: This includes any person or business entity that is paid to transport property in their motor vehicle, regardless of the vehicle’s size, type, or weight.​
• Operate as a ‘Private’ Carrier: This includes any person or business entity operating a vehicle with a Gross Vehicle Weight Rating (GVWR) of 10,001 pounds or more, either for business or personal use.​

Entities that transport property for compensation are deemed ‘For-Hire’ motor carriers, while those transporting their own goods are considered ‘Private’ motor carriers. ​

What Is a Carrier Identification Number (CA#)?

A Carrier Identification Number (CA#), also known as a California DOT Number, is issued exclusively by the California Highway Patrol (CHP) as part of their Biennial Inspection of Terminals (BIT) Program. This number is used as the Motor Carrier Permit number. Not all motor carriers that require a motor carrier permit need to participate in the BIT Program. ​

Can I Apply for an MCP at My Local DMV Field Office?

No. The single point of contact for all matters related to the MCP program is the Registration Operations Division located at DMV Headquarters in Sacramento, California. The MCP Operations Unit is not open to the public. However, there is a public drop box labeled “Motor Carrier Permit” at:​

Department of Motor Vehicles
Building West Lobby
2570 24th Street
Sacramento, CA 95818​

For more information, visit the California DMV Motor Carrier Permits page.​

What Is a Seasonal MCP?

A Seasonal MCP, commonly referred to as a Seasonal Permit, can be issued to an intrastate motor carrier operating on a “For-Hire” basis for no less than six months, but no more than 11 months in a 12-month term. Seasonal carrier fees are based on the size of the fleet and are comprised of the Safety Fee plus one-twelfth of the Uniform Business License Tax (UBLT) for each month the MCP is valid, along with the full Carrier Inspection Fee (CIF). Seasonal carriers will pay the CIF only once in their seasonal term. Extensions can be requested for a fee of $5 plus one-twelfth of the UBLT based on the fleet size per additional month of operation in the seasonal term. A seasonal MCP cannot be issued to an Interstate motor carrier.

Do I Need to Provide Proof of Workers’ Compensation Insurance?

Yes, all motor carriers are required to provide proof of compliance with California’s Workers’ Compensation laws. Submit one of the following or certify on the Application for Motor Carrier Permit (MC 706 M) that you are not subject to California workers’ compensation laws:​

• A Certificate of Insurance (MC 65 M).​
• A Certificate of Insurance electronically submitted by the State Compensation Insurance Fund (SCIF).​
• A Certificate of Consent to Self-Insure issued by the director of the Department of Industrial Relations (DIR) of the Office of Self-Insurance Plans (OSIP).​
• A signed exemption statement stating that in your operations as a motor carrier, you do not employ any person in any manner to become subject to the workers’ compensation laws of California.​

For additional information regarding Workers’ Compensation requirements and laws, visit the Department of Industrial Relations or call them at 1-800-736-7401.​

What Is the Basic Inspection of Terminals (BIT) Program?

Under the BIT program, the CHP selects terminals for inspection based on the available carrier performance data or the commodity transported. Carriers must maintain and make available for inspection vehicles and records at the terminal(s) inspected as required by the California Vehicle Code (CVC) §§34501 and 34501.12. ​

Trailers are included in BIT inspections but are not considered when identifying vehicles for payment of MCP fees.​

Are Carriers Who Only Transport U.S. Mail or Freight Containers Required to Obtain an MCP?

No. The transportation of U.S. Mail or freight containers, whether empty or loaded, has been deemed interstate commerce. If you are under contract with the United States Postal Service (USPS) and transport only U.S. mail or if you only transport freight containers, you are not subject to MCP requirements even if all your transportation is conducted in California.​

What Happens If I Operate as a Carrier of Property Without an MCP?

Operating as a motor carrier of property without an MCP is a misdemeanor and is punishable by a fine of up to $2,500, or by imprisonment in the county jail for not more than three months, or both. CHP may also confiscate and impound your vehicles. Penalties may also be assessed when applying for an MCP (RTC §7236).​

Does the DMV Audit Carrier Records?

Yes. The DMV reviews all carrier records on an ongoing basis. California Vehicle Code (CVC) Section 8057(b) authorizes the Department to audit fleet records of apportioned registrants to ensure the accuracy of the reported distance (mileage), vehicle cost, and weight information.

Driver Qualification File (DQF)

What Is a Driver Qualification File, and Who Needs One?

A Driver Qualification File (DQF) is a collection of documents that the Federal Motor Carrier Safety Administration (FMCSA) requires motor carriers to maintain for each driver operating a commercial motor vehicle (CMV). This applies to all drivers, including owner-operators. Even if you’re the only driver in your company, you must maintain a DQF for yourself.​

What Should Be Included in a DQF?

According to FMCSA regulations, a DQF must contain the following:​

• Driver’s Application for Employment: A completed and signed application detailing the driver’s employment history.​
• Motor Vehicle Record (MVR): An MVR from each state where the driver held a license in the past three years, obtained within 30 days of employment.​
• Road Test Certificate or Equivalent: Proof that the driver has passed a road test or holds a valid Commercial Driver’s License (CDL) accepted instead of a road test.​
• Annual MVR and Review: An updated MVR and a note documenting the annual review of the driver’s driving record.
• Medical Examiner’s Certificate: A valid certificate confirming the driver is physically qualified to operate a CMV.​
• Verification of Medical Examiner Listing: A note confirming that the medical examiner is listed on the National Registry of Certified Medical Examiners.​
• Safety Performance History: Records of inquiries made to previous employers regarding the driver’s safety performance history.​

Additional documents may be required based on specific circumstances, such as:​

• Skill Performance Evaluation (SPE) Certificate: For drivers with certain physical impairments.​
• Medical Variance Documentation: If applicable.​
• Longer Combination Vehicle (LCV) Driver-Training Certificate: For drivers operating LCVs.​
• Entry-Level Driver Training Certificate: For drivers who completed entry-level training.​

Note: Drug and alcohol testing records should be kept in a separate, confidential file with limited access.​

What If Something Is Missing from a DQF?

If you discover that a required document is missing from a DQF, it’s important to address the issue promptly. While you cannot erase past violations, demonstrating a good-faith effort to comply can mitigate potential penalties. Document the steps you’ve taken to correct the issue and avoid attempting to conceal the violation, as this could lead to more severe consequences.​

When Is a Motor Vehicle Report (MVR) Needed?

You must obtain an MVR:​

• At the Time of Hire: From each state where the driver held a license in the past three years.​
• Annually: To review the driver’s driving record.​
• For CDL Drivers: Within 15 days of each medical examination, verify medical certification status.​

How Quickly Can I Get My DQFs in Compliance with FCCR?

Our compliance specialists at FCCR are committed to helping you achieve 100% compliance. We’ll work with you to bring your DQFs into compliance as efficiently as possible, tailoring the process to your company’s specific needs.​

Why Must Owner-Operators Maintain DQFs?

As an owner-operator, you fulfill both the employer and driver roles. This means you’re responsible for meeting all requirements applicable to both positions. For example, as a driver, you must have a current medical certificate and a valid driver’s license. As an employer, you’re responsible for maintaining documentation and participating in random testing programs, among other duties.​

What Happens If I Can’t Produce DQFs During a Review?

According to FMCSA regulations, you must be able to produce DQFs upon request. Failing to provide these files during a review or within two business days is considered a violation, even if the files are complete.​

Do Non-CDL Drivers Need DQFs?

Yes. DQF requirements are based on the type of vehicle operated, not the type of license held. If a driver operates a CMV, as defined by FMCSA regulations, a DQF is required regardless of whether the driver holds a CDL.

Drug and Alcohol Testing Program

What Is a Drug and Alcohol Testing Program, and Who Needs It?

The Federal Motor Carrier Safety Administration (FMCSA) requires all employers and drivers who operate commercial motor vehicles (CMVs) requiring a Commercial Driver’s License (CDL) to participate in a drug and alcohol testing program. This includes owner-operators, who must enroll in a Consortium/Third-Party Administrator (C/TPA) program to manage their testing requirements.

Who Is Required to Be Tested?

All safety-sensitive employees operating CMVs requiring a CDL are subject to testing. This includes:​

• Full-time, part-time, and intermittent drivers​
• Owner-operators​
• Mechanics who test-drive vehicles requiring a CDL​

When Are Drug and Alcohol Tests Required?

Testing is mandated under the following circumstances:

• Pre-Employment: Before operating a CMV, a driver must undergo a drug test with a negative result. ​
• Post-Accident: Testing is required after certain accidents, especially those involving fatalities, injuries requiring immediate medical treatment, or when a vehicle is towed, and the driver receives a citation.
• Random Testing: Drivers are subject to unannounced random testing throughout the year. The selection is made using a scientifically valid method, and all drivers have an equal chance of being tested.
• Reasonable Suspicion: If a trained supervisor observes signs of drug or alcohol use, the driver must be tested. Supervisors must complete 60 minutes of training on recognizing signs of drug use and 60 minutes on alcohol misuse.
• Return-to-Duty: After a violation, a driver must complete the return-to-duty process, including evaluation by a Substance Abuse Professional (SAP) and a directly observed test with a negative result.
• Follow-Up: Following return-to-duty, the driver must undergo a series of unannounced tests as prescribed by the SAP, with a minimum of six tests in the first 12 months.

What Substances Are Tested?

Urine tests screen for the following substances:​

• Marijuana (THC)​
• Cocaine​
• Amphetamines (including methamphetamine)​
• Opiates (including heroin)​
• Phencyclidine (PCP)​
• MDMA (Ecstasy)​

Note: Alcohol testing is also conducted using breath or saliva tests.​

How Does the FMCSA Ensure Compliance?

Employers must maintain records demonstrating compliance with drug and alcohol regulations. The FMCSA conducts audits and reviews, during which employers may be required to provide:​

• Proof of enrollment in a testing program or consortium​
• Testing records (pre-employment, random, post-accident, reasonable suspicion, return-to-duty, and follow-up)​
• Training records for supervisors​
• A copy of the company’s drug and alcohol policy​

What Happens If a Driver Tests Positive?

A driver who tests positive must be immediately removed from safety-sensitive duties. To return to duty, the driver must:​

1. Be evaluated by a DOT-qualified Substance Abuse Professional (SAP)​
2. Complete any recommended treatment or education​
3. Pass a return-to-duty drug and/or alcohol test​
4. Undergo follow-up testing as prescribed by the SAP​

What If a Positive Result Is Due to Prescription Medication?

If a driver tests positive due to a prescribed medication, they must provide the prescription to the Medical Review Officer (MRO). The MRO will determine if the medication use is legitimate and if the driver is medically qualified to perform safety-sensitive functions.​

What Documentation Is Required During an FMCSA Audit?

During an audit, employers should be prepared to provide:

• A copy of the contract with the consortium or C/TPA​
• Documentation showing all safety-sensitive CDL drivers are part of the random testing pool​
• The company’s drug and alcohol policy​
• Driver information booklets​
• All test results (pre-employment, random, post-accident, reasonable suspicion, return-to-duty, and follow-up)​
• Reports from the consortium show the percentage of random tests conducted in the previous year​

What Must Employers Provide to Their Drivers?

Employers are required to provide each driver with a copy of the company’s drug and alcohol policy. This policy should outline the procedures, consequences of violations, and resources available for assistance.

FMCSA Drug & Alcohol Clearinghouse

What Is the Clearinghouse?

The FMCSA Drug & Alcohol Clearinghouse is a secure online database that provides real-time information about commercial driver’s license (CDL) and commercial learner’s permit (CLP) holders’ drug and alcohol program violations. It is accessible to employers, the Federal Motor Carrier Safety Administration (FMCSA), State Driver Licensing Agencies (SDLAs), and State law enforcement personnel.

Who Must Register with the Clearinghouse?

The following parties are required to register:​

• Employers: Companies employing CDL drivers must register to report violations and conduct required queries.​
• Owner-Operators: Individuals who operate under their own authority must register as both employers and drivers.
• Consortia/Third-Party Administrators (C/TPAs): Organizations that manage drug and alcohol testing programs on behalf of employers.​
• Medical Review Officers (MROs) and Substance Abuse Professionals (SAPs): Professionals involved in the evaluation and treatment of drivers.​

CDL/CLP drivers are not required to register unless they need to provide electronic consent for a full query or wish to view their own records.

Who Is Impacted by the Clearinghouse?

All CDL and CLP holders operating commercial motor vehicles (CMVs) on public roads are subject to Clearinghouse requirements. This includes:​

• Interstate and intrastate motor carriers​
• Passenger carriers​
• School bus drivers​
• Construction equipment operators
• Limousine drivers​
• Municipal vehicle drivers (e.g., waste management vehicles)​
• Federal and other organizations employing drivers subject to FMCSA drug and alcohol testing regulations ​

When Did the Clearinghouse Go into Effect?

The Clearinghouse became operational on January 6, 2020. All DOT drug and alcohol violations occurring on or after this date are required to be reported to the Clearinghouse and entered into the driver’s record. Employers must conduct a pre-employment Clearinghouse query for all new drivers before hiring and perform annual queries for all current drivers. ​

Who Is Authorized to Use the Clearinghouse?

Access to the Clearinghouse is limited to parties involved in the DOT drug and alcohol testing process:​

• Safety-sensitive employers​
• CDL/CLP drivers​
• Consortia/Third-Party Administrators (C/TPAs)​
• Substance Abuse Professionals (SAPs)​
• Medical Review Officers (MROs)​

Each must register to access and use the Clearinghouse.

How to Confirm Your TPA Is Registered in the Clearinghouse

When setting up your employer account, you can search for and designate your C/TPA. If your C/TPA is not listed, contact them to ensure they have completed their Clearinghouse registration.

What Information Must Employers Report to the Clearinghouse?

Employers are required to report the following:

• Alcohol confirmation test results with a concentration of 0.04 or greater​
• Refusals to submit to DOT-required drug or alcohol tests​
• Actual knowledge of drug or alcohol use, as defined in § 382.107​
• Negative return-to-duty (RTD) test results​
• Completion dates of all follow-up tests as ordered by a Substance Abuse Professional (SAP)

What Is an Actual Knowledge Violation?

An actual knowledge violation occurs when an employer has direct evidence of a driver’s drug or alcohol use. This can include:​

• Direct observation of use​
• Information provided by a previous employer​
• A traffic citation for operating a CMV under the influence​
• The driver’s own admission of use​

Such violations must be reported to the Clearinghouse. ​

Are There Different Reporting Requirements for Owner-Operators?

Yes. Owner-operators, who serve as both employers and drivers, must designate a C/TPA to report drug and alcohol violations on their behalf. They are also responsible for conducting annual queries on themselves and maintaining compliance with all Clearinghouse requirements.

Heavy Vehicle Use Tax (HVUT) – Form 2290

Who Needs to File Form 2290?

If you own or register a highway motor vehicle with a taxable gross weight of 55,000 pounds or more, you’re required to file Form 2290 and pay the Heavy Vehicle Use Tax (HVUT). This typically includes large trucks, truck tractors, and buses. Smaller vehicles like vans, pickup trucks, and panel trucks usually don’t meet the weight requirement and are exempt.

If you expect to use the vehicle for 5,000 miles or less (7,500 miles or less for agricultural vehicles) during the tax period, you must still file Form 2290 but are not required to pay the tax.

What Is Taxable Gross Weight?

Taxable gross weight is the total of:​

1. The unloaded weight of the vehicle, fully equipped for service.​
2. The unloaded weight of any trailers or semi-trailers customarily used with the vehicle, fully equipped for service.​
3. The weight of the maximum load customarily carried on the vehicle and any trailers. ​

When Is Form 2290 Due?

The HVUT tax year runs from July 1 to June 30. If your vehicle is in use during July, you must file Form 2290 and pay the tax by August 31. For vehicles first used in other months, the deadline is the last day of the month following the month of first use.

How Much Does the HVUT Cost?

The tax is based on the vehicle’s taxable gross weight:​

• For vehicles weighing 55,000 to 75,000 pounds, the tax starts at $100, plus $22 for each 1,000 pounds over 55,000.​
• For vehicles over 75,000 pounds, the maximum tax is $550 per year. ​

Can I Claim a Refund?

Yes, you may be eligible for a credit or refund if:

• The vehicle was sold, destroyed, or stolen during the tax period.​
• The vehicle was used 5,000 miles or fewer (7,500 miles or fewer for agricultural vehicles) during the tax period.​

To claim a credit, you can report it on your next Form 2290. Alternatively, you can file Form 8849, Schedule 6, to request a refund. Note that for low-mileage vehicles, you must wait until the end of the tax period to file for a refund. ​

Do I Need Proof of Payment?

Yes. After filing Form 2290 and paying the tax, you’ll receive a stamped Schedule 1, which serves as proof of payment. It’s recommended to keep a copy in your vehicle, especially when crossing international borders, as it’s required for vehicle registration and may be requested by authorities.

What Happens If I Don’t Pay the HVUT?

Failure to pay the HVUT can result in penalties and interest. Additionally, you won’t be able to renew your vehicle registration, including IFTA, IRP, or UCR registrations, which could lead to your vehicle being operated illegally.

Intrastate Authority

What Is Operating Authority?

Operating authority is a legal permission granted by the Federal Motor Carrier Safety Administration (FMCSA) that allows a company to transport goods or passengers for hire. It’s essential for businesses that operate commercial vehicles in interstate commerce. Depending on the type of transportation services offered, different types of operating authority may be required.

What Is the Difference Between Interstate and Intrastate Commerce?

• Interstate Commerce: This involves trade, traffic, or transportation that crosses state or national boundaries. Even if the vehicle doesn’t physically cross a state line, if the goods or passengers are part of a journey that does, it’s considered interstate commerce.
• Intrastate Commerce: This refers to trade, traffic, or transportation that occurs entirely within a single state’s borders and doesn’t involve crossing into another state or country.​

What Are the Differences Between Common, Contract, and Broker Authority?

• Common Carrier Authority: Allows a company to transport goods for the general public. These carriers must file proof of public liability insurance with the FMCSA.​
• Contract Carrier Authority: Permits a company to transport goods for specific shippers based on contracts. Like common carriers, they must also file proof of public liability insurance.​
• Broker Authority: Enables a company to arrange transportation of goods by connecting shippers with authorized carriers. Brokers do not take possession of the goods and must file a $75,000 surety bond.

What Is IRP?

The International Registration Plan (IRP) is an agreement among U.S. states, the District of Columbia, and Canadian provinces that allows for the distribution of registration fees based on the distance traveled in each jurisdiction. It’s required for commercial vehicles that operate in multiple jurisdictions and have a gross vehicle weight rating (GVWR) over 26,000 pounds.​

What Is IFTA?

The International Fuel Tax Agreement (IFTA) is an agreement among U.S. states and Canadian provinces to simplify the reporting of fuel use by motor carriers that operate in more than one jurisdiction. Carriers file a single quarterly fuel tax report with their base jurisdiction, which then distributes the taxes owed to other jurisdictions.​

Which States Require Special Permits to Operate?

Some states have specific permit requirements for certain types of carriers:​

• New York: Requires a Highway Use Tax (HUT) permit for vehicles operating on state highways.​
• New Mexico: Mandates a Weight Distance Tax permit for commercial vehicles over a certain weight.​
• Oregon: Requires a Weight-Mile Tax permit for vehicles over 26,000 pounds.​
• Kentucky: Requires a Kentucky Highway Use Tax (KYU) number for vehicles over 60,000 pounds.​

Additionally, carriers transporting certain hazardous materials may need special safety permits.

How Do I Change from Intrastate to Interstate Operations?

If you’re currently operating solely within one state (intrastate) and plan to start operating across state lines (interstate), you’ll need to:​

1. Update Your USDOT Number: File an updated MCS-150 form to reflect the change to interstate operations.​
2. Obtain Operating Authority: Apply for the appropriate operating authority through the FMCSA’s Unified Registration System (URS).​
3. Secure Insurance and Bonds: Ensure you have the necessary insurance coverage and, if applicable, a surety bond.​

Once your application is approved and all requirements are met, you’ll receive your operating authority, allowing you to legally operate interstate.

Motor Carrier Authority (MC Number)

Who Needs an MC Number?

If you operate as a for-hire carrier transporting regulated goods or passengers across state lines, you are required to obtain a Motor Carrier (MC) Number from the Federal Motor Carrier Safety Administration (FMCSA). This includes:​

• Transporting goods that belong to others for compensation.​
• Carrying passengers across state lines for payment.​

Note: Private carriers transporting their own cargo typically do not need an MC Number.​

What Is an MC Number?

An MC Number, also known as an operating authority, is a unique identifier assigned by the FMCSA. It grants legal permission to operate as a for-hire carrier in interstate commerce. This is separate from a USDOT Number, which is used to track safety information and compliance.​

How to Apply for an MC Number

1. Obtain a USDOT Number: Before applying for an MC Number, you must have a USDOT Number.​
2. Apply Through the Unified Registration System (URS): Submit your application online via the FMCSA’s URS.​
3. Pay the Application Fee: There is a non-refundable fee of $300 for each type of authority you apply for.
4. Submit Required Documents:
   • BOC-3 Form: Designates a process agent in each state you operate.
   • Proof of Insurance: Your insurance company must file the appropriate forms (e.g., BMC-91 or BMC-91X) with the FMCSA.​

Processing Time

• Initial Review: After submitting your application, there is a 20-25 business day vetting period.
• Activation: Once all requirements are met and the vetting period concludes, your authority becomes active.​
• Certificate of Authority: You will receive this document by mail, typically within 7-10 business days after activation.​

Types of Operating Authority

When applying, you’ll need to specify the type of authority you require:

• Motor Carrier of Property (Except Household Goods): For-hire carriers transporting regulated commodities for the general public.​
• Motor Carrier of Household Goods: For-hire carriers moving household items for the public.​
• Motor Carrier of Passengers: For-hire carriers transporting passengers.​
• Broker of Property: Individuals or companies arranging transportation of property (excluding household goods) for compensation.​
• Broker of Household Goods: Arranges transportation of household goods for compensation.​

Each type has specific insurance and bonding requirements.

Can You Operate Before Receiving Your MC Number?

No. You must wait until your MC Number is active and you have received your Certificate of Authority before commencing interstate operations. Operating without proper authority can result in penalties.​

What Is an MX Number?

An MX Number is assigned to Mexico-domiciled motor carriers that transport goods into the United States. These carriers must also obtain a USDOT Number and a Certificate of Registration for commercial-zone operations or long-haul authority.

What Is an MCS-90 Endorsement?

The MCS-90 is an endorsement that must be attached to your insurance policy. It serves as proof that you have the required minimum levels of financial responsibility to cover public liability claims. This endorsement is mandatory for carriers operating commercial motor vehicles in interstate commerce.

Starting a Trucking Business: Understanding LLCs

Do I Need an LLC for My Trucking Company?

Forming a Limited Liability Company (LLC) can be a smart move for trucking business owners. An LLC helps protect your assets—like your home, car, and savings—from business-related liabilities. It also offers tax flexibility and can enhance your company’s credibility.​

Benefits of an LLC for a Trucking Company

1. Personal Asset Protection: An LLC separates your assets from your business liabilities. If your company faces legal issues or debts, your personal property is generally protected.​
2. Tax Flexibility: LLCs offer various taxation options. By default, profits pass through to your income, avoiding corporate taxes. Alternatively, you can elect to be taxed as an S Corporation, which might offer tax advantages depending on your situation.​
3. Enhanced Credibility: Operating as an LLC can make your business appear more professional to clients, lenders, and partners. It shows that you’re serious and committed to your enterprise.​
4. Simplified Management: Compared to corporations, LLCs have fewer formalities, making them easier to manage, especially for small business owners.​

LLC vs. Sole Proprietorship: Which is Better?

A sole proprietorship is the simplest business structure, but it doesn’t offer personal asset protection. If your trucking business is low-risk and you’re just starting, a sole proprietorship might suffice. However, an LLC provides added security and flexibility, making it a better choice for many trucking entrepreneurs.​

Costs of Forming an LLC for a Trucking Company

The cost to form an LLC varies by state, typically ranging from $40 to $500. Additionally, there might be annual fees or reports required to maintain your LLC status. It’s essential to check with your state’s Secretary of State office for specific fees and requirements.

Paying Yourself from Your Trucking LLC

As an LLC owner, you can pay yourself in several ways:​

• Owner’s Draw: Withdraw profits directly from the business account.​
• Salary: If your LLC is taxed as an S Corporation, you can pay yourself a regular salary, which is subject to payroll taxes.​

Consult with a tax professional to determine the best method based on your LLC’s tax classification.​

Understanding Limited Liability Protection

Limited liability protection means that your assets are generally not at risk if your business incurs debts or is sued. However, this protection requires that you keep your business and personal finances separate and comply with all legal requirements.​

Importance of a Business Bank Account for Your LLC

Opening a dedicated business bank account is crucial. It helps maintain the separation between your personal and business finances, which is essential for preserving your limited liability protection.​

What is the Corporate Veil?

The “corporate veil” refers to the legal distinction between the LLC and its owners. Maintaining this separation protects your assets. However, if you mix personal and business finances or fail to follow legal formalities, courts can “pierce the corporate veil,” making you personally liable for business debts.​

Single-Member LLC vs. Sole Proprietorship

While both structures involve a single owner, a single-member LLC offers limited liability protection, whereas a sole proprietorship does not. Additionally, forming an LLC can provide tax benefits and enhance your business’s credibility.

Employer Identification Number (EIN) for Trucking Businesses

What Is an EIN?

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify your business for tax purposes. It’s similar to a Social Security Number but is used for businesses. When applying for an EIN, you’ll need to provide your Social Security Number (SSN) to link you as the responsible party for the business. This person oversees the company’s financial activities and assets.​

Why Do You Need an EIN for Your Trucking Business?

Obtaining an EIN is essential for several reasons:​

• Tax Reporting: The IRS uses your EIN to track your business income and ensure proper tax filing.​
• Hiring Employees: If you plan to hire drivers or other staff, an EIN is necessary to process payroll and related taxes.​
• Opening a Business Bank Account: Most banks require an EIN to open a business account, which helps separate personal and business finances.​
• Applying for Licenses and Permits: An EIN is often needed when applying for various business licenses or permits, including those specific to the trucking industry.​

How to Apply for an EIN

There are several methods to apply for an EIN:​

1. Online Application: This is the fastest and preferred method. You can apply directly through the IRS website, and if your information is complete and accurate, you’ll receive your EIN immediately. Note that the online application is available to entities whose principal business is located in the U.S. or U.S. Territories.
2. Fax: Complete Form SS-4 and fax it to the appropriate number listed on the IRS website. If you provide a return fax number, you should receive your EIN within four business days.
3. Mail: Fill out Form SS-4 and mail it to the IRS address designated for your state. Processing times for mailed applications are approximately four weeks. ​
4. Telephone (International Applicants Only): If your principal business is located outside the U.S. or U.S. Territories, you can call the IRS at 267-941-1099 to apply. This option is not available for businesses within the U.S.

How Long Does It Take to Get an EIN?

• Online: Immediately upon completion of the application.​
• Fax: Approximately four business days.​
• Mail: About four weeks.​
• Telephone (International Applicants Only): Immediately during the call.​

Should You Get an EIN Even If It’s Not Required?

Yes, obtaining an EIN can be beneficial even if you’re not legally required to have one. For sole proprietors or independent contractors, an EIN can:​

Simplify Tax Reporting: An EIN helps streamline the process of filing taxes and managing business finances.

Enhance Professionalism: Using an EIN instead of your SSN can make your business appear more professional to clients and partners.​

Protect Personal Information: An EIN reduces the need to share your SSN, thereby decreasing the risk of identity theft.​

Texas Motor Carrier Authority (TxDMV Number)

What Is a TxDMV Number?

A TxDMV Number is a unique identifier issued by the Texas Department of Motor Vehicles (TxDMV) for commercial motor carriers operating solely within Texas. This number is required for intrastate operations and is separate from the federal USDOT Number, which is necessary for interstate commerce.

Do I Need a TxDMV Number if I Have a USDOT Number?

Yes. If you operate commercial vehicles within Texas and meet certain criteria, you must obtain a TxDMV Number in addition to your USDOT Number.

Who Needs a TxDMV Number?

You are required to register for a TxDMV Number if you operate intrastate and:

• Use a vehicle or combination of vehicles with a gross weight, registered weight, or gross weight rating over 26,000 pounds.
• Transport hazardous materials in quantities that require placarding.
• Operate a farm vehicle with a gross weight, registered weight, or gross weight rating of 48,000 pounds or more.
• Operate a vehicle designed to transport more than 15 passengers, including the driver.
• Operate a commercial school bus.
• Transport household goods for compensation, regardless of vehicle weight.

How Do I Apply for a TxDMV Number?

1. Obtain a USDOT Number: Before applying, ensure you have an active USDOT Number registered for intrastate operations.
2. Apply Online: Visit the TxDMV’s Electronic Licensing, Insurance, and Credentialing (eLINC) system to start your application.
3. Insurance Filing: After submitting your application, your insurance company must file the required Form E (and Forms H & I for household goods movers) electronically with the TxDMV.
4. Pay Fees: Once your insurance is filed, you’ll receive instructions to pay the necessary fees through the Motor Carrier Credentialing System (MCCS).
5. Receive Certificate: After payment, your Unique Identifier Number (UIN) will be converted to your official TxDMV Certificate Number.

How Long Does the Registration Last?

Motor carrier registration is available for:

• 7 calendar days
• 90 days
• 1 year
• 2 years

Note: 7-day and 90-day certificates cannot be renewed.

What Are the Fees?

Fees vary based on the registration period and type of operation. For most carriers:

• Application Fee: $5 (7-day), $25 (90-day), $100 (1-year or 2-year)
• Vehicle Fee: $10 per vehicle (1-year), $20 per vehicle (2-year)
• Insurance Filing Fee: $100

Household goods movers have additional cargo insurance requirements.

What Are the Insurance Requirements?

Minimum insurance coverage depends on your operations:

• Hazardous Materials Transporters: $5,000,000
• Oil and Certain Hazardous Materials: $1,000,000
• Household Goods Movers (vehicles under 26,000 lbs): $300,000
• Commercial School Bus Operators: $500,000
• Bus Operators (15-26 passengers): $500,000
• Bus Operators (over 26 passengers): $5,000,000
• All Others (vehicles over 26,000 lbs): $500,000

Household goods movers must also carry cargo insurance:

• Per Vehicle: $5,000
• Aggregate Loss: $10,000

Do I Need to Display My TxDMV Number?

Yes. Commercial motor vehicles must display the following on both sides:

• The legal name or a single trade name of the motor carrier.
• The USDOT Number is preceded by “USDOT”.
• The TxDMV Number, if applicable.

Markings must be:

• In letters and numbers at least 2 inches tall.
• Readable from 50 feet during daylight hours.
• Maintained in a manner that retains legibility.

What Happens If I Don’t Comply?

Operating without a valid TxDMV Number or failing to maintain required insurance can result in:

• Fines and penalties.
• Suspension or revocation of your operating authority.
• Vehicle impoundment.

Ensure you stay compliant to avoid disruptions to your business.

Unified Carrier Registration (UCR)

What is a UCR?

The Unified Carrier Registration (UCR) is a federally mandated program that requires individuals and companies operating commercial motor vehicles in interstate or international commerce to register annually and pay a fee based on fleet size. This includes for-hire carriers, private carriers of property, brokers, freight forwarders, and leasing companies. The UCR program is administered by the UCR Plan and Agreement, which is an interstate agreement among 41 participating states.

Who Needs to Register for UCR?

You are required to register for UCR if you operate a commercial motor vehicle in interstate or international commerce and fall into one of the following categories:​

• For-hire motor carriers (e.g., trucking companies transporting goods for compensation).
• Private motor carriers (e.g., companies transporting their own goods).
• Brokers (e.g., entities arranging transportation of goods).
• Freight forwarders (e.g., entities consolidating shipments).
• Leasing companies (e.g., entities leasing commercial vehicles).

A commercial motor vehicle is defined as a self-propelled or towed vehicle used on highways in commerce to transport passengers or cargo if the vehicle

• Has a gross vehicle weight rating or gross vehicle weight of at least 10,001 pounds, whichever is greater.
• Is designed to transport more than 10 passengers, including the driver.
• Is used in transporting hazardous materials in a quantity requiring placarding.

Registration Period and Enforcement

The UCR registration period opens on October 1 each year and runs through December 31. Enforcement for the registration year begins on January 1. For example, enforcement for the 2025 registration year began on January 1, 2025.

Fees and Payment

UCR fees are based on the total number of commercial motor vehicles operated. The fee structure is tiered, with higher fees for larger fleets. For the 2025 registration year, fees increased by an average of 25% compared to the previous year.

Proof of Registration

No physical credential is required to be carried in the vehicle. Enforcement personnel verify UCR compliance through the federal SAFER system or the UCR National Registration System.

Consequences of Non-Compliance

Failure to register and pay UCR fees can result in penalties, including fines and potential out-of-service orders. Fines vary by state and can range from $100 to $5,000 for first-time offenders.

How to Register

You can register and pay UCR fees online through the official UCR website: www.ucr.gov. The site provides step-by-step instructions and accepts various payment methods.​

USDOT Registration

What Is a USDOT Number?

A USDOT Number is a unique identifier assigned by the Federal Motor Carrier Safety Administration (FMCSA). It’s used to monitor a company’s safety information, such as compliance reviews, inspections, and crash investigations.

Who Needs a USDOT Number?

You are required to obtain a USDOT Number if you operate a commercial vehicle in interstate commerce that:

• Has a gross vehicle weight rating (GVWR) or gross combination weight rating (GCWR) of 10,001 pounds or more.
• Is designed or used to transport more than 8 passengers (including the driver) for compensation.
• Is designed or used to transport more than 15 passengers (including the driver) not for compensation.
• Is used to transport hazardous materials in a quantity requiring placarding.

Additionally, some states require intrastate commercial motor vehicle registrants to obtain a USDOT Number. These states include, but are not limited to, Alabama, California, Florida, Texas, and Washington.

How Do I Apply for a USDOT Number?

You can apply for a USDOT Number through the FMCSA’s Unified Registration System (URS) online. The process is free and, if completed online, the USDOT Number is issued immediately.

What Are the Updating Requirements?

FMCSA requires all entities under its jurisdiction to update their information every two years, even if no changes have occurred. This is known as the biennial update. Failure to complete this update can result in the deactivation of your USDOT Number and may lead to civil penalties.

You must also update your information within 30 days of any change in:

• Company name
• Address
• Phone number
• Email address
• Number of vehicles operated

What If I’m Based in Mexico?

Mexico-domiciled motor carriers must obtain a USDOT Number and appropriate operating authority to operate in the U.S. This involves submitting Form MCS-150 and the OP-1(MX) application. Note that online registration is not available for Mexico-based carriers; applications must be submitted by mail.

Do I Need a USDOT Number for Intrastate Operations?

It depends on your state’s regulations. Some states require intrastate carriers to obtain a USDOT Number, while others do not. It’s important to check with your state’s Department of Transportation to determine the requirements applicable to your operations.

Can I Lease My Services to a For-Hire Company Without Operating Authority?

Yes, you can lease your services to a for-hire carrier that has the necessary operating authority. However, you must comply with FMCSA regulations, including those outlined in 49 CFR Part 376, which governs lease agreements between carriers and owner-operators.