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Motor Carrier Trucking Authority

Frequently Asked Questions

Do I need an EIN?
It is a good business practice to have a Federal Employer Identification Number for your company though not required if you are a sole proprietorship.

Do I need to set up my company as an llc?
You should if you are concerned about personal exposure to lawsuits or debts arising from your trucking operation.

How long is the process?     
Approximately four weeks.

What is a BOC-3 filing?
A Federal filing that typically designates legal agents in each of the fifty states to receive and forward legal documents which have been served.

When should I get my insurance?
Begin having your insurance quoted once you receive your DOT/MC numbers.  Towards the end of the mandatory waiting period, you will want to decide upon your provider, pay the premium, and have the agent file the coverage with the FMCSA.

How much coverage do I need?
A minimum of $750K in liability is required.  Cargo isn’t generally required by the government for most operations, however many shippers and brokers often insist upon at least $100K in cargo insurance.

Do you have factoring services?
Yes, NASTC has a long-standing relationship with a factoring company that can customize a cash flow program for your new endeavor.

What is the Unified Carrier Registration (UCR)?
Created by the Unified Carrier Registration Act of 2005, it replaced the former system of registering and collecting fees from vehicle operators engaged in interstate travel.  The annual fee must be paid each January by carriers and brokers.

Must I update my UCR receipt when I add/drop trucks?
No, not until your renewal time – even if it would make your fee higher.

Do I need a truck to start the process?
You can own or lease a truck, but you must have a truck to insure in order for the authority to go active.

What is the International Registration Plan?
It is a base/home state agreement which allows an apportioned CMV to travel through all of the contiguous states with only one license plate and cab card regsitration.

How do I get my apportioned plates?
Once your authority has reached authorized for hire status,  you may set up your IRP account by visiting your state’s Commercial Motor Vehicle division.  It is a good practice to call ahead to know exactly what your state requires you to bring with you.

What is an MCS-90?
It is proof of insurance on file with the FMCSA, aka Motor Carrier Policy Endorsement or Insurance Declaration Page.  Carriers must also maintain a copy of this at their place of business.

Must I have a physical address to get my authority?
Yes you must have a physical structure owned or leased by the company.  A post office box is not sufficient.

What is the International Fuel Tax Agreement (IFTA)?
A tax collection agreement among the forty-eight contiguous states to simplify the reporting and collection of fuel taxes when carriers operate in more than one jurisdiction.

Must I have a drug & alcohol program in place if I only have one driver?
Yes…not having a program is an auto-fail violation of the new entrant audit (382.115).

Do I need an EI

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