For new freight businesses, box trucks are an especially popular choice because they’re versatile, relatively affordable, and easier to operate than full-sized semi-trucks. However, if you are thinking about launching a box truck business or becoming an owner-operator, you will have to get your authority first.
That’s one term you will hear a lot, so it is important to discuss just what it means. If you wish to operate legally and successfully in the freight industry, getting your operating authority is the first key step. Here, One Freight Broker will break down what exactly “authority” means, why you need it, and how to get one.
What is Operating Authority?
Authority is the legal permission granted by the Federal Motor Carrier Safety Administration (FMCSA) to operate as a carrier. It’s often called motor carrier authority or MC authority.
Operating authority allows a company or individual to transport goods or passengers for hire, making it an essential element of legal compliance for any trucking business engaged in interstate commerce. Without it, a carrier cannot legally haul loads across state lines for compensation.
Having operating authority establishes your legitimacy in the industry. More importantly, it opens the door to working with larger shippers and brokers who require carriers to be properly authorized and insured. Overall, it’s a foundational step in starting a professional trucking operation.
Do Box Truck Businesses Need Authority?
When it comes to box truck operators, they need to acquire authority as well. As long as you haul freight for hire, cross state lines, or plan to work with freight brokers or shippers, this is a requirement you need to obtain. The same also applies if your vehicle has a gross vehicle weight rating (GVWR) of 10,001 pounds or more.
Even small box trucks, like 16-foot or 24-foot models, often exceed the 10,001-pound threshold, especially when loaded. So if you’re transporting loads for compensation, it’s best to assume you’ll need authority. That is, unless you’re strictly operating under a larger carrier’s authority as a leased-on driver.
Types of Authority
There are different types of authority depending on the kind of freight and services you plan to offer. For most box truck operators, you will need an MC number and a USDOT number.
Motor Carrier (MC) Number
This is the number that identifies you as a for-hire carrier registered with the FMCSA. You will choose between either a Motor Carrier of Property (except Household Goods) or Motor Carrier of Household Goods. The first one is for general freight hauling while the other is for moving companies transporting personal belongings. Most freight haulers choose the first one.
USDOT Number
This is required for all carriers who operate commercial vehicles across state lines or transport hazardous materials. It serves as your company’s identifier for safety audits, inspections, and compliance. You’ll need a USDOT number whether you’re operating under your own authority or leased onto another carrier.
Step-by-Step: How to Get Authority for a Box Truck Business
Before you can hit the road, you will have to secure your authority—a process that can feel overwhelming if you don’t know what you’re doing. The good news is that it is absolutely manageable if you break it down into steps. Here’s a simple breakdown:
Form a Legal Business Entity
Before you can get your operating authority, you need to establish your business legally. Most box truck owners choose to form a limited liability company (LLC) or a corporation, but you could also operate as a sole proprietor.
Forming a legal entity helps separate your personal assets from your business liabilities, offering you some financial protection. You’ll need to register your business name with your state and obtain an Employer Identification Number (EIN) from the IRS, which you’ll use for taxes, insurance, and opening a business bank account.
Register with the FMCSA
Next, it’s time to apply for your MC Number and your USDOT Number through the FMCSA. When you register, you’ll complete an application called the Unified Registration System (URS). Be prepared to provide detailed information about your business operations, types of cargo, and the states you plan to operate in.
Designate a Process Agent (BOC-3)
Before your authority can become active, you need to designate a process agent using a BOC-3 form.
A process agent is a person or company that can accept legal documents on your behalf in each state where you operate. There are many companies that offer BOC-3 filing services online for a reasonable fee. Without a BOC-3 on file, the FMCSA will not finalize your authority, so you can’t skip this step.
Get Insurance
Insurance is another major requirement for obtaining your authority. You must have primary liability insurance and, depending on the cargo you transport, you might also need cargo insurance. This is necessary because the FMCSA requires proof of insurance before they activate your authority.
It’s important to shop around for policies tailored to box truck businesses so you can meet coverage minimums while keeping costs manageable. Your insurer will file the necessary forms directly with the FMCSA.
Wait for Your Authority to Become Active
After submitting all your documents and insurance proof, you’ll need to wait for your authority to become active. Typically, there is a 21-day vetting period during which the FMCSA accepts public comments or challenges to your application. Once the waiting period passes and everything checks out, your authority will be granted, and you’ll be ready to start operating legally. Always double-check your FMCSA registration to ensure there are no outstanding issues before you begin hauling freight.
Other Requirements for Box Truck Carriers
Beyond obtaining FMCSA authority, box truck carriers often need to comply with several other regulatory requirements. These additional registrations and permits depend on the nature of your operations. This means it’s all about the types of freight you haul, whether you cross state lines, and the states in which you operate.
Here are some common requirements to be aware of when setting up your box truck business:
Unified Carrier Registration (UCR)
The Unified Carrier Registration is a federally mandated program that requires individuals and companies operating commercial vehicles in interstate commerce to register and pay a fee based on fleet size. Even if you’re only operating as a broker or freight forwarder without owning vehicles, you may still need to register under UCR.
International Registration Plan (IRP)
If your box truck crosses state lines and exceeds a certain weight (typically over 26,000 pounds), IRP registration is likely required to stay compliant. The International Registration Plan allows for the apportionment of registration fees among the states and Canadian provinces in which a commercial vehicle operates.
International Fuel Tax Agreement (IFTA)
IFTA simplifies the reporting of fuel use by carriers that operate in multiple jurisdictions. Just like the IRP, if your box truck travels across state lines and meets the weight threshold, you’ll need to apply for an IFTA license and file quarterly fuel tax reports to make sure that taxes are properly distributed among the states where you’ve driven.
State-Specific Permits
In addition to federal and multi-state agreements, many states have their own permit requirements for commercial carriers. These might include intrastate operating authority, oversize/overweight permits, or environmental compliance fees. For this, you will need to check with the Department of Transportation or motor carrier authority in each state where you plan to operate.
Leasing Onto a Carrier vs. Getting Your Own Authority
When we talk about “leasing onto a carrier”, it means partnering with an established trucking company that handles many of the administrative and compliance responsibilities. This option is ideal for new owner-operators or small box truck businesses that want to hit the road quickly without dealing with the hurdles of getting their own authority.
In this arrangement, the carrier typically provides insurance, handles billing and compliance, and may even offer steady freight, making it easier to stay profitable. However, this also means you will have less independence: your earnings are shared with the carrier, and you must operate under their rules, routes, and schedules, which can limit growth potential and personal freedom.
Getting Your Own Authority
On the other hand, obtaining your own authority means you’re fully independent and responsible for running your box truck business under your own USDOT and MC numbers. The biggest advantage is full control: you choose your loads, set your rates, and keep all profits. This freedom can lead to greater earnings and long-term business growth.
However, it also comes with higher startup costs, more paperwork, and added responsibility for insurance, compliance, load sourcing, and customer relationships.
For experienced operators or those ready to scale, having your own authority offers unmatched potential. You just need careful planning, industry knowledge, and a willingness to manage the business side of trucking.
Work with One Freight Broker
Getting your own authority is a serious step and it comes with its pros and cons. While it gives you full independence and earning potential, it also comes with a big dose of responsibility. If you have business experience, a good safety record, and the drive to be your own boss, pursuing authority can be a great move. If you’re new to the game, consider leasing onto a carrier first so you can learn and grow.
Either way, the freight industry continues to evolve—and box trucks are in demand. With careful planning, a strong work ethic, and the right licenses, you can build a profitable business hauling freight on your own terms.
For those in need of reliable freight transportation services, One Freight Broker is the go-to choice for shippers everywhere. In fact, since our founding in 2013, we have significantly reduced the shipping costs of our clients, amounting to tens of millions in savings, by linking them with dependable trucking partners. Our unique approach allows clients to reduce their dependence on intermediaries and build direct, beneficial, and enduring connections with carriers.
Here at One Freight broker, we offer a wide range of services that can provide everything you need, from LTL to FTL, domestic to international, and even expedited shipping. We offer an unprecedented depth of strategic insight, helping you navigate the intricate landscape of the freight industry.
When you partner with One Freight Broker, you gain access to a vast network of carriers, competitive rates, and a team of experts dedicated to optimizing your shipping process. Whether you’re shipping domestically or require assistance with more complex logistics, we’re here to ensure your freight reaches its destination efficiently and cost-effectively.
Contact Us Today
Ready to simplify your shipping experience? Contact One Freight Broker to discover how our expertise can benefit your business, ensuring your cargo is in safe hands every step of the way.
For more information on how we can assist your business, visit our website at 1fr8.broker.
