If you’re interested in becoming an independent owner-operator or starting your own trucking business, then you need to understand the term “operating authority”. This is one of the first things you will run into when you pursue a career in the transportation and logistics industry.
Simply put, an operating authority is your ticket to haul freight for hire. It serves as proof that you are allowed to transport goods and charge people for your services. Here, One Freight Broker will break down what operating authority is, why you need it, and how to obtain your very own authority.
Why Does Operating Authority Matter?
The trucking industry is heavily regulated, and for good reason. Trucks are massive vehicles, often carrying valuable or hazardous cargo across long distances. Safety, accountability, and clear oversight are necessary. Because of this, the Federal Motor Carrier Safety Administration (FMCSA) requires most carriers and brokers to have official authorization before conducting business.
Having authority allows a carrier to transport goods for hire across state lines. It’s also more than just a legal formality: operating authority defines the scope of your business, who you can haul for, and what types of cargo you’re allowed to carry.
It’s Legally Required
It goes without saying that if you do not have an operating authority, you cannot legally move freight as a for-hire carrier across state lines. The FMCSA requires this for all interstate motor carriers to ensure compliance with federal safety and insurance standards. Operating without it can lead to hefty fines and shutdowns. It may even prevent you from collecting payment for loads you already hauled.
It Builds Trust with Shippers and Brokers
Having operating authority signals that your business is legitimate, which also looks good in the eyes of shippers and brokers. These parties tend to check authority status before working with carriers. Before they offer loads for transport, you need to establish trust and work on building your network. This is crucial for your long-term success in the freight industry.
It Opens the Door to Growth Opportunities
Once you have operating authority, you can scale your business by taking on a wider range of freight and clients. Whether you’re hauling general freight, hazardous materials, or specialized cargo, having the correct authority allows you to tap into different market segments and grow your operation with confidence.
Even if you own a truck and have clients who are ready to work with you, you can’t legally haul freight across state lines without operating authority. If you want to make your business official, this is a step you can’t skip.
Who Needs Operating Authority?
Not every truck driver needs their own operating authority. If you drive for a larger company as a company driver or even as a leased-on owner-operator under someone else’s MC number, you’re essentially covered by their authority. Because they’ve already gone through the paperwork and approval process, you can just focus on driving.
When working under someone else’s authority, the legal responsibilities like insurance, DOT compliance, and regulatory filings typically fall on the carrier, not the individual driver. This allows newer drivers to still earn a living on the road without the burden of managing their own business structure or running a full operation.
However, if you want to haul freight for hire across state lines under your own name, that’s when you need to start thinking about securing your own operating authority. This means if you want to run your own trucking business; work directly with shippers and brokers; control your own freight lanes and schedule; and build your own brand, you need this authority.
Ultimately, it depends on how much control and independence you want in this business.
Types of Operating Authority
The trucking and freight industry is broad, meaning there’s not just one blanket authority. The FMCSA offers different kinds depending on what you’re doing in the industry. You will get a specific type based on the specific nature of your business’s operations.
These various types of operating authority dictate what your company is legally allowed to do, whether that’s transporting goods, arranging shipments, or both. If you want to stay compliant and operate lawfully, you need to choose the correct type of authority:
Motor Carrier (MC) Authority
MC Authority is for companies that operate commercial vehicles to transport regulated commodities for hire across state lines. This is the most common form of authority and is required if you’re physically moving freight that doesn’t belong to you. Having MC authority means you’re responsible for the freight, the vehicle, and the safety compliance standards that come with transporting goods.
Broker Authority
Broker authority, as the name suggests, is for freight brokers. These are professionals who serve as intermediaries between shippers and carriers. They handle the logistics of the shipping process even though they do not actually handle or transport the freight themselves.
Brokers serve as middlemen, using their network to match a shipper’s needs with a carrier’s availability. They also keep the lines of communication open and come up with quick solutions to minimize the impact of delays, route changes, and other issues that can happen during transport.
Other Types
Beyond MC and broker authority, there are other specialized forms, like the Freight Forwarder authority and Mexico-Domiciled Carrier authority. Freight forwarders combine shipments for transport and may take possession of the freight at some point, making them different from brokers. Meanwhile, Mexico-Domiciled carriers transporting goods into the US have their own unique authority requirements.
Each type of authority reflects a different function in the freight chain, ensuring the FMCSA can regulate safety and accountability across all roles.
The Application Process: Step by Step
Getting operating authority in trucking isn’t necessarily difficult, but it can be detailed and time-consuming if you’re unfamiliar with the process. There are also fees to consider and timelines for approval, which can stretch into weeks depending on how quickly you submit documents and meet requirements. Here’s what the typical process looks like:
1. Apply for an MC Number
You’ll start by going to the FMCSA’s Unified Registration System (URS) and submitting an application. This is where you’ll pick the type of authority you’re applying for and provide basic information about your business. The cost to apply is $300 per authority, so if you’re applying for both broker and carrier authority, you can expect to pay $600.
2. Get a USDOT Number
If you don’t already have a USDOT number, you’ll be assigned one during the application. This number is used for safety tracking, inspections, and compliance. Even carriers who operate only within one state often need a DOT number.
3. Designate a Process Agent (BOC-3 Filing)
The FMCSA requires carriers to designate a process agent in each state where they operate. A process agent is someone who can accept legal documents on your behalf. While you can get a process agent for a specific state, you can also hire a company that will give you nationwide coverage—they will also file the BOC-3 form for you. Keep in mind that this step is crucial—your authority won’t be activated until this is completed.
4. Get Insurance in Place
One of the biggest hurdles for new carriers is getting insurance coverage in place. The FMCSA requires minimum liability coverage (usually $750,000 to $1,000,000) before your authority can become active. Depending on what you haul, you may also need cargo insurance. Once your insurance company files your policy with the FMCSA, the waiting period begins.
5. 21-Day Waiting Period
Once everything is filed, there’s a 21-day vetting period before your operating authority finally becomes active. This gives the FMCSA time to review your paperwork and for the public to file any protests.
If you move quickly and have your insurance lined up, the whole process—from application to activation—can be completed in about 3 to 4 weeks. However, delays with insurance, paperwork errors, or slow filings can stretch it out to two months or more.
One Freight Broker recommends planning ahead and getting help from a reputable compliance service or consultant. Assuming all goes well, your authority becomes active at the end of that window.
Common Mistakes to Avoid
As you can see, the process isn’t overly complex, but there are plenty of pitfalls that can delay or derail your plans. To avoid this, here are some common mistakes to watch out for when applying for authority:
Skipping the Insurance Step
Failing to secure the right insurance coverage beforehand can prevent you from getting your authority right away because it’s a requirement from the FMCSA. In fact, many new carriers don’t realize their application will sit in limbo until insurance is verified. Shopping around for commercial trucking insurance early can prevent delays and help you find the best rates. It’s also essential to ensure the policy covers all vehicle types and routes you plan to operate.
Wrong Business Structure
Choosing the wrong business structure—such as operating as a sole proprietor when an LLC or corporation might be better—can lead to tax headaches and personal liability. It can even make it more difficult to expand your business later on.
Some new carriers rush this step to get started quickly, not realizing how foundational it is to long-term success. It’s smart to consult with a tax professional or attorney to decide the best structure for your situation before applying for authority.
Underestimating Costs
Many first-time applicants underestimate the full cost of getting their authority. Beyond the $300 FMCSA application fee, there are expenses for insurance, Unified Carrier Registration (UCR), truck decals, drug testing programs, and other state-level filings.
These costs can quickly add up to several thousand dollars. Going in without a realistic budget can leave you short on funds just when you’re ready to start running loads. One Freight Broker suggests planning ahead financially to avoid getting stuck mid-process.
What Happens After You Get Your Authority?
Once you have your authority, you can now operate as your own motor carrier. Having this independence comes with responsibilities, from finding loads to maintaining your vehicle. You also need to stay compliant with federal and state laws—all of these on top of actually running your business.
Many carriers use load boards to start finding freight, while others concentrate on building direct relationships with shippers. To grow your network as quickly as possible, it is a good idea to implement both strategies.
Work with One Freight Broker
Whether or not getting your own authority is worth it depends on your goals. If you want to be truly independent, build your own brand, set your own schedule, and increase your income potential, then getting your authority should be a priority.
However, it also comes with risk. You’re responsible for all business costs, insurance, repairs, fuel, and compliance. There’s no safety net, and the margins can be thin—especially in your first year. That’s why many drivers start by leasing on to an established carrier to learn the ropes, build capital, and gain experience before making the jump.
If you want to work with an already-established freight broker that is known for reliable freight transportation services, choose One Freight Broker. We offer technology-driven solutions and exceptional customer service, making us the go-to choice for shippers everywhere.
Here at One Freight Broker, we have significantly reduced shipping costs for clients, amounting to tens of millions in savings, by allowing our clients to build direct, beneficial, and enduring connections with reliable trucking allies. We are able to pass on high-volume discounts to our shipping partners by reducing their dependence on intermediaries.
We can cover everything you need, from LTL to FTL, domestic to international, or even expedited shipping. One Freight Broker’s dedicated team ensures smooth shipping operations, providing an assigned account manager to guide you through best shipping practices.
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.
