Why MC Authority Is Essential For Your Freight Brokerage Operation

To get your trucking business off of the ground (or rather, get it moving on the ground), you’re going to want to do things by the books. There are many great reasons to start a trucking company, and if you’re here on our blog looking to absorb information and practice your due diligence before becoming a freight brokerage owner, Transportation Academy applauds you.

Learning How To Become A Freight Broker (The Right Way!)

Below, we’ll touch on the importance of MC authority and why obtaining this commercial road-legal certification, in addition to a DOT number, is an absolutely necessary part of starting your own trucking business. Continue reading to expand your knowledge, and feel free to contact us here at Transportation Academy with questions at any time. Let’s get started!

What Is MC Authority (Operating Authority)?

To be clear, “MC authority” and “operating authority” both refer to the same thing — essentially, the road-legal clearance to operate a vehicle for the purposes of interstate commerce. In accordance with the Federal Motor Carrier Safety Administration and the United States Department of Transportation, any company that hauls freight for commerce, like a trucking company, must obtain operating authority. There is no known exception to this.

Who Needs MC Authority?

If your trucking company is to do any of the following, then you’re going to need operating authority, in addition to a DOT number:

  • Operating a business for the purpose of for-hire carriers, for a fee for compensation
  • Transporting passengers or arranging the transport of passengers via interstate commerce
  • Transporting or arranging the transport of any federally regulated commodities via interstate commerce

So, whether you’re hauling goods or passengers across different states, you’ll need MC authority, no matter what it is or who you’re transporting.

What Should You Keep In Mind When Obtaining Operating Authority?

When you’re shaping the foundation of your trucking company, it makes sense to give these logistical questions some thought:

  • What are your major startup expenses? (i.e. trucks, trailers, vehicle registration fees, insurance, etc.)
  • How are you going to structure your business? (LLC, corporation, sole proprietor, etc.)
  • What is your tax structure going to look like? (disregarded entity, S-corp, C-corp, etc.)
  • What is your cost per mile going to be?
  • Are there additional permits to consider based on which states you’ll be operating in?
  • Have you accounted and budgeted for any additional costs, such as audit assistance, a 2290 Form, or Drug and Alcohol Regulations Compliance?

If the multitude of thoughts, questions, and concerns seems overwhelming, don’t worry! Transportation Academy is dedicated to helping business professionals like you successfully start a trucking company without worrying about any unaddressed areas or legal gaps. Our transportation consulting services and in-person seminars are invaluable for this reason.

Get Help With Starting A Trucking Company. Get Your MC Authority Today!

Transportation Academy is here to turn your dreams into a successful, well-structured, tangible reality. Ready to get started? Get your MC authority in as little as 30 minutes or contact us with any questions.