Establishing your trucking company involves a lot of paperwork, permits, and licenses, and one crucial step is obtaining your motor carrier authority. Getting this authority is a significant milestone in starting your trucking company, and it’s important to understand the process. Wondering what motor carrier authority is and how to get your MC number? Read on to learn more.

### WHAT IS MOTOR CARRIER AUTHORITY?

Motor carrier authority is the permission required for commercial vehicles transporting passengers or freight across state lines. Issued by the Federal Motor Carrier Safety Administration (FMCSA), it allows you to transport goods interstate and gives you the freedom to decide how to operate your trucking company. This includes choosing the types of loads you haul, your routes, and your schedules.

The FMCSA also issues MC Numbers and USDOT Numbers, which serve as unique identifiers for your trucking company. These numbers help the FMCSA conduct audits, inspections, reviews, and monitor safety and compliance. Therefore, obtaining your motor carrier authority is essential for legal operations in the United States.

### STEPS TO OBTAIN YOUR MOTOR CARRIER AUTHORITY

#### FORM YOUR BUSINESS

Before applying for authority, you need to establish your company. Research the industry, define your vision, set goals, and create a business plan. Choose a unique name for your business and ensure it isn’t already in use. Requirements for starting a business vary by state, so check your state’s official website or file your business with the Secretary of State for accurate information.

#### CHOOSE A BUSINESS STRUCTURE

Deciding on a business structure can be overwhelming due to the numerous options available. It’s beneficial to consult an attorney or business advisor to help determine the best structure for maximizing your financial and operational success. Here’s a rundown of common business entities for trucking companies:

**Sole Proprietorship**: Managed by a single person, this is one of the easiest business entities to establish, making it a good choice for new trucking company owners. However, the owner is personally liable for any damages or liabilities.

**Limited Liability Company (LLC)**: Popular among small businesses, an LLC offers personal asset protection, flexibility, and combines aspects of partnerships and corporations. Owners are not personally liable for company debts, and it benefits from flow-through taxation like sole proprietorships and partnerships.

**Partnership**: This entity involves two or more people managing the business and sharing profits and losses. It doesn’t require formal documents to establish and offers unique benefits from shared management and resources.

**Corporation**: A legal entity that acts as a single entity, a corporation is ideal for entrepreneurs seeking a formal business structure. Corporations can enter contracts, sue and be sued, loan money, pay taxes, and more. Although time-consuming and complex to set up, corporations protect shareholders from company liabilities. Regulations vary by state, so consulting a legal advisor is crucial before forming a corporation.

By following these steps and choosing the appropriate business structure, you can successfully obtain your motor carrier authority and start your trucking company on the right path.