Operating a cargo van with your own authority can give you flexibility, autonomy, and potentially high returns. This is especially true for highly motivated individuals who have a talent for networking and logistics.
Unlike traditional trucking, cargo van work often involves lighter loads, no commercial driver’s license (CDL) requirement, and shorter routes, which can be appealing for those who want to stay closer to home. Keep in mind that just like any other career path, it also comes with challenges like fluctuating fuel costs, vehicle maintenance, and the need to consistently find paying loads.
Still, for entrepreneurial-minded people, the ability to set your own schedule and build your own business makes this a compelling and rewarding career option. If you wish to pursue this path, then the first step in launching a career in the freight industry is getting authority.
Here, One Freight Broker will discuss the process of getting authority for your cargo van, why you need it, and what to expect during this journey.
What is Operating Authority?
Operating authority, also known as motor carrier authority, is a legal requirement issued by the Federal Motor Carrier Safety Administration (FMCSA). It allows a business to transport goods for hire across state lines in the US. Your authority will serve as proof that you have met the necessary federal regulations, including insurance coverage, safety compliance, and registration.
For cargo van operators, especially those using their vans for commercial purposes like hauling freight, obtaining operating authority is essential to legally move loads for compensation on public roadways.
Having operating authority distinguishes a for-hire carrier from private carriers who only transport their own goods. Once granted, the authority is tied to the type of operation being conducted, whether it’s general freight, household goods, or specialized cargo. It also determines the legal scope of the carrier’s business.
Without it, cargo van operators may face fines, impoundments, or even shutdown orders. Here are some of the reasons why you need one as a carrier:
Legal Compliance
The most basic—and most important—reason for securing authority for your cargo van is for legal compliance. Authority essentially grants you the legal right to transport goods for hire across state lines. Even if you’re operating within one state, some states still require intrastate authority. Getting the right authorization ensures you’re compliant with all federal and state regulations, avoiding legal issues that could jeopardize your business.
Access to More Business Opportunities
Having operating authority allows you to take on a broader range of freight contracts and clients. Many shippers, brokers, and logistics platforms require motor carrier authority before they’ll do business with you.
Without it, you’re limited to lower-paying local gigs or under-the-table work, which can be unreliable and unsustainable. Once you’re fully authorized, your cargo van business becomes more legitimate and competitive, opening doors to higher-paying, long-term contracts and partnerships.
Building Trust and Professional Reputation
Once you have operating authority, it signals to clients and brokers that you are a legitimate, trustworthy carrier who follows industry rules. It also shows that you carry the required insurance and have passed the necessary checks, which builds confidence in your services.
This authority can make a huge difference when trying to win contracts or grow your client base because most customers prefer to work with carriers who are officially registered and regulated. In the long run, this trust will translate into repeat business and positive word-of-mouth.
Securing operating authority not only ensures compliance with federal law but also builds your credibility within the logistics industry—something you need for long-term success.
Step-by-Step Guide to Getting Authority for Your Cargo Van
If you are new to the industry, getting operating authority may seem overwhelming at first. However, the process is actually straightforward if you take it step by step. With a bit of patience, you can easily navigate the legal and administrative tasks involved. Here, One Freight Broker breaks down the steps of obtaining authority:
Form a Legal Business
The first step is to establish a legal business entity. Most cargo van operators choose to register as a Limited Liability Company (LLC) or a sole proprietorship, though other structures like a corporation are also options. Forming a legal business helps protect your personal assets and gives your operation legitimacy. This is also important because it is often required when applying for insurance or contracts. To establish your business entity, you typically have to register your business name with your state and pay a small filing fee.
Get an EIN (Employer Identification Number)
Once your business is legally formed, you’ll need to apply for an Employer Identification Number (EIN) from the IRS. This number acts like a Social Security Number for your business and is necessary for opening a business bank account, filing taxes, and completing federal paperwork like the Motor Carrier Authority application.
You can apply for an EIN online for free on the IRS website, and the process usually takes just a few minutes.
Decide What Kind of Authority You Need
Before applying, you must determine the specific type of authority your cargo van business requires. The most common types are “Motor Carrier of Property” (for transporting goods in interstate commerce for-hire) and “Broker Authority” (if you’re arranging transportation but not moving freight yourself). If you’re only operating within one state, you may only need intrastate authority. You have to take your business model into consideration when choosing the right type of authority to apply for.
Apply for Your DOT and MC Number
Next, you’ll apply for your USDOT Number and, if you’re operating interstate and for-hire, your MC (Motor Carrier) Number through the FMCSA. These identifiers are needed for legal operation and compliance with safety regulations.
The application is done through the FMCSA’s Unified Registration System (URS). Take note that there’s a filing fee for the MC Number. Make sure to have all your business details and EIN ready before you begin.
Designate a Process Agent (BOC-3 Filing)
To complete your operating authority application, you must file a BOC-3 form, which designates a process agent in each state you operate. A process agent is a person or business that can receive legal documents on your behalf. This filing is typically done through a third-party BOC-3 filing service, and many offer bundled packages with authority setup. The FMCSA will not activate your authority until this form is on file.
Get the Right Insurance
You will also need to secure the proper insurance coverage to earn your authority. This includes liability and cargo insurance, which are part of the FMCSA’s minimum requirements for applicants. Insurance providers will typically file proof directly with the FMCSA, and your application won’t be processed without it. Make sure you shop around for competitive rates, but prioritize carriers experienced in working with commercial motor vehicles.
Register for the Unified Carrier Registration (UCR)
The Unified Carrier Registration (UCR) is a federally mandated program that requires all motor carriers traveling across state lines to register and pay an annual fee based on fleet size. If you’re engaged in interstate commerce, this registration is mandatory—even if you’re only operating one cargo van. You can register online through your state’s UCR portal or the national UCR website.
Enroll in a Drug & Alcohol Testing Program (If Required)
If your cargo van operation includes vehicles over 10,001 pounds or involves CDL drivers, you’ll need to enroll in a DOT-compliant drug and alcohol testing program. This includes pre-employment tests, random testing, and post-accident screening. However, if your van is under this weight and you’re not required to hold a CDL, you may be exempt. Always double-check your specific operation’s requirements to stay compliant with FMCSA regulations.
Understand IFTA and IRP (Probably Not Needed for Cargo Vans)
International Fuel Tax Agreement (IFTA) and International Registration Plan (IRP) are only necessary if you’re operating vehicles over 26,000 pounds or with three or more axles in interstate commerce.
Since most cargo vans fall well below these thresholds, you likely won’t need to worry about these programs. However, it’s still a good idea to be aware of them, especially if you plan to expand your fleet or switch to larger vehicles in the future.
Start Booking Freight
Once you have your authority, insurance, and necessary registrations in place, it’s time to start booking freight. One Freight Broker recommends signing up for load boards, networking with freight brokers, and exploring dedicated lanes to keep your van busy and profitable.
Platforms like DAT, Truckstop, and direct shipper contacts are excellent ways to get started if you haven’t built your network yet. Now with your legal requirements met, you’re ready to operate your cargo van business and grow it with confidence.
What If You Only Work Intrastate?
If you operate solely within the borders of your home state—commonly known as intrastate trucking—you might not need authority from the FMCSA. However, that doesn’t mean you’re free from regulation. Many states have their own set of rules for intrastate carriers, and failing to comply can still result in fines or delays in getting your business running.
The exact requirements can vary widely from one state to another, so it’s important to contact your state’s Department of Transportation (DOT) or motor carrier office for accurate information.
Some states require intrastate carriers to obtain a DOT number, similar to the federal version, but used for state-level tracking and safety enforcement. Others may require a state-specific operating authority, proof of insurance filings, or even special permits depending on the type of freight you haul.
Remember, just because you’re not crossing state lines doesn’t mean you’re exempt from oversight. Don’t assume you’re automatically exempt because you’re local. Check your state’s requirements.
How Much Does It Cost to Get Authority?
The cost to get authority for a cargo van can vary depending on several factors. The FMCSA charges a $300 fee to file for operating authority. In addition, you’ll need commercial auto insurance, which can cost between $5,000 and $12,000 per year depending on your driving record, type of cargo, and coverage limits.
Filing your BOC-3 typically costs around $20 to $50 if done through a processing agent. If you hire a third-party service to help manage the paperwork and ensure compliance, that can add another $500 to $1,000 to your startup expenses.
Altogether, most new operators can expect to spend between $6,000 and $13,000 to get fully authorized and road-ready. These are not exact figures and you still have to check for yourself how much each of these requirements are going to cost for your business.
Work with One Freight Broker
While getting authority for a cargo van isn’t as complicated as it first appears, it does require some attention to detail. Once you’ve set up your business, applied through FMCSA, secured insurance, and filed all your paperwork, you’ll be ready to legally haul freight and get paid for it. The best part is that you get to be your own boss, running your own logistics business with your cargo van.
If you play your cards right, one van can turn into a fleet—and a side hustle can become a full-time freight operation. But if you prefer to work with an established freight broker with a reputation for reliability, choose One Freight Broker.
One Freight Broker, compared to other brokers, takes a unique approach wherein they actually reduce your reliance on intermediaries. This inclusive approach allows clients to build direct, beneficial, and enduring connections with carriers. By helping them build these relationships with reliable shipping partners, we reduce shipping costs significantly. In fact, since our founding in 2013, we have significantly reduced shipping costs for our clients, amounting to tens of millions in savings, by linking them with dependable trucking partners.
Beyond that, One Freight Broker is also known for its wide range of services, covering everything you need from LTL to FTL, domestic to international, or expedited shipping. We make sure to help you find the perfect fit for your needs, regardless of your shipping requirements.
One Freight Broker offers an unprecedented depth of strategic insight, which is why we are now the go-to choice for shippers everywhere.
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.
