Get Your Own Authority

What you do

• □Research LLC vs Sole Proprietorship vs S-Corp
• □Choose your business name
• □File with your state Secretary of State
• □Get your Articles of Organization
• □Create an Operating Agreement (LLC)

Worth knowing

• •LLC is the most popular choice for owner-operators — it protects your personal assets.
• •Many states let you file online for $50-$150. Avoid paying $500+ to a "formation service."
• •A few states also require you to publish notice of your LLC formation in a newspaper — check your state guide.
• •You can always change your structure later, but it is easier to start with the right one.

What you do

• □Go to IRS.gov EIN application
• □Select your business type (LLC, sole prop, etc.)
• □Enter your business information
• □Download your EIN confirmation letter
• □Save your EIN somewhere safe

Worth knowing

• •This is 100% free directly from the IRS. Never pay someone for an EIN.
• •Apply online Monday-Friday, 7am-10pm Eastern. You get it instantly.
• •Save the confirmation PDF — you will need it for your bank account and USDOT.

What you do

• □Bring EIN confirmation letter
• □Bring Articles of Organization (LLC) or business registration
• □Bring your driver's license
• □Compare banks — look for no monthly fees
• □Set up online banking and mobile deposit
• □Order checks (some brokers still mail them)

Worth knowing

• •Many banks offer free business checking with no minimum balance.
• •Online-only business banks are usually the cheapest option — compare a few before you commit.
• •Set up a separate savings account for quarterly taxes (save 25-30% of income).

What you do

• □Create an account on FMCSA portal
• □Complete the online application
• □Enter your business and vehicle information
• □Download your USDOT confirmation
• □Save your USDOT number — you will use it everywhere

Worth knowing

• •The USDOT number is free. Do not pay a third party for this.
• •You will need your EIN, business address, and vehicle info.
• •Your USDOT number is active immediately — no waiting period.

What you do

• □Apply directly through the FMCSA Unified Registration System
• □Pay the FMCSA filing fee ($300, paid to FMCSA — confirm the current amount on their site)
• □Wait out the 21-day protest period
• □Get your BOC-3 filed (next step)
• □Have your insurer file proof of insurance (step after)
• □Authority becomes active once the protest period ends and BOC-3 + insurance are on file

Worth knowing

• •You can file this yourself. It is paperwork, not magic — this guide walks you through every field you will be asked for.
• •The 21-day protest period starts when FMCSA publishes your application. Use that time to knock out the other steps.
• •Do NOT pay for expedited processing — there is no way to speed up the 21-day period, and anyone selling that is selling nothing.
• •Watch out for lookalike sites that charge a markup to submit the same free forms. Apply on fmcsa.dot.gov.

What you do

• □Choose a BOC-3 process agent service
• □Pay the filing fee ($30-$75 one time)
• □The service files with FMCSA on your behalf
• □Verify it shows on your FMCSA record

Worth knowing

• •Only a registered process agent can file this for you — it is one of the few steps you cannot do entirely yourself.
• •Most services file it within 24-48 hours.
• •You only need to do this once — it stays on file as long as you keep the agent.

What you do

• □Get quotes from at least 3 insurance companies
• □Choose between $750K and $1M liability
• □Add cargo insurance ($100K minimum is typical)
• □Add physical damage if your truck is financed
• □Your insurer files proof of coverage with FMCSA
• □Verify insurance shows on the FMCSA SAFER website

Worth knowing

• •New authorities pay the most — budget $800-$1,800/mo for a new authority in your first year.
• •Rates drop significantly after 1-2 years with a clean record.
• •Quotes vary enormously between carriers for the same driver. Shopping three or more is worth real money.
• •Never let your insurance lapse — FMCSA will revoke your authority.

What you do

• □Go to ucr.gov
• □Enter your USDOT number
• □Select your fleet size (0-2 vehicles)
• □Pay the annual fee for the registration year
• □Save your confirmation

Worth knowing

• •The registration period runs October 1 through December 31 for the following year.
• •The fee is tiered by fleet size and reset annually — check ucr.gov for the current year rather than trusting an old number.
• •Only register at ucr.gov. Lookalike sites charge a markup for the same registration.
• •This renews every year. Put it on your calendar now.

What you do

• □Contact your base state's DMV or IRP office
• □Provide your USDOT number, VIN, and business info
• □List the states you plan to operate in (tip: list all 48)
• □Pay the proportional registration fees
• □Receive your IRP cab card and plate
• □Keep your cab card in the truck at all times

Worth knowing

• •Register in ALL 48 lower states — it does not cost much more and avoids problems.
• •Fees are proportional to miles driven in each state. You true-up annually.
• •Processing time varies by state — some take 2-4 weeks.
• •Your cab card is your most important document at weigh stations.

What you do

• □Apply through your base state's IFTA office
• □Provide your USDOT and business information
• □Receive your IFTA license and decals
• □Put IFTA decals on both sides of your truck
• □Start tracking miles and fuel purchases by state
• □File quarterly IFTA returns

Worth knowing

• •IFTA quarters: Q1 (Jan-Mar due Apr 30), Q2 (Apr-Jun due Jul 31), Q3 (Jul-Sep due Oct 31), Q4 (Oct-Dec due Jan 31).
• •Keep ALL fuel receipts, and record the state every gallon was bought in.
• •Late filing penalties are steep, and they compound. Put all four deadlines in your calendar the day you get your license.
• •Track your miles by state from day one — reconstructing a quarter from memory is miserable and inaccurate.

What you do

• □Check the FMCSA registered ELD list before buying anything
• □Compare monthly cost, hardware cost, and contract length
• □Purchase or subscribe
• □Install in your truck and pair it with your engine
• □Run a test drive cycle and confirm logs record correctly

Worth knowing

• •Verify the device is on the FMCSA registered list — devices do get removed from it, which makes them non-compliant overnight.
• •Look for one that also reports mileage by state jurisdiction, which makes IFTA far easier.
• •Budget $20-$100/month depending on features.
• •Avoid the cheapest options — reliability matters when you are sitting at a weigh station.

What you do

• □Title the truck in your business name (or personal name)
• □If financed: lender holds title — get registration in the business name
• □Get your state registration / tags
• □Verify the VIN matches all your filings
• □Keep registration in the truck at all times
• □Set up annual renewal reminders

Worth knowing

• •If you just bought the truck, get the title transfer done first.
• •Some states require a separate commercial vehicle registration.
• •Make sure the GVWR on your registration matches what you told FMCSA.

What you do

• □Order magnetic or vinyl DOT number decals
• □Display on BOTH sides: company name and USDOT number
• □Letters must be at least 2 inches tall in a contrasting color
• □Apply IFTA decals on both sides of the cab
• □Take a photo of each side for your records

Worth knowing

• •Magnetic signs are fine when you are starting — easy to update if your info changes.
• •Budget $23-$50 from any trucking supply store.
• •Double-check every digit before applying — a typo is still a violation.
• •Markings must be legible from 50 feet while the vehicle is stationary.

What you do

• □Choose accounting software or a trucking-focused bookkeeping service
• □Connect your business bank account
• □Set up expense categories (fuel, maintenance, insurance, tolls, etc.)
• □Keep every receipt, categorized, from your first load
• □Set aside 25-30% of income for quarterly taxes
• □Find a trucking-focused CPA or tax preparer

Worth knowing

• •Transportation workers subject to HOS limits can deduct a special per diem rate for days away from home — check the current-year rate, it is adjusted regularly.
• •Quarterly estimated taxes are generally due Apr 15, Jun 15, Sep 15, and Jan 15.
• •A trucking CPA usually pays for themselves in tax savings. Budget $500-$1,500/year.
• •The deduction you cannot prove is the deduction you do not get. Photograph receipts the day you get them.

What you do

• □Research several factoring companies
• □Compare rates: 2-5% per invoice is standard
• □Check for hidden fees (setup, ACH, monthly minimums, termination)
• □Understand recourse vs non-recourse
• □Apply and get approved (usually 1-3 days)
• □Learn how to submit invoices

Worth knowing

• •Non-recourse factoring protects you if the broker never pays. Recourse means you eat it.
• •Read the termination clause before you sign — long lock-ins are common and expensive to exit.
• •Factoring is not free money. At 3% on $200K of annual revenue, it costs $6,000 a year.
• •If you can float 30-day payment terms without it, you keep that margin.