A motor carrier permit, also known as motor carrier authority or MC number, is federal or state authorization that allows commercial carriers to transport goods or passengers for compensation. Understanding motor carrier permits is essential for anyone starting or operating a trucking business, as different types of authority govern whether you can haul freight across state lines, operate within a single state, or transport specific types of cargo. Whether you’re launching a new trucking company, expanding operations, or ensuring compliance with federal and state regulations, knowing which motor carrier permits apply to your operation helps establish legal authority and avoid costly regulatory violations.
Understanding Motor Carrier Permits
Motor carrier permits represent the legal authorization required for commercial carriers to transport property or passengers for hire. The Federal Motor Carrier Safety Administration issues motor carrier authority for interstate operations, while individual states grant intrastate operating authority. Without appropriate motor carrier permits, carriers cannot legally transport goods or passengers for compensation, making these authorizations fundamental to commercial transportation operations.
The term motor carrier permit often refers specifically to operating authority rather than other commercial vehicle credentials. This distinction is important because carriers need multiple types of authorizations including DOT numbers for identification, operating authority for legal transport rights, and various permits for specific movements or load types.
Motor Carrier Authority vs. DOT Number
Understanding the difference between motor carrier authority (MC number) and DOT numbers prevents confusion about regulatory requirements. A DOT number serves as a unique identifier assigned to commercial motor carriers by the FMCSA. This number is required for interstate commerce and certain intrastate operations, functioning primarily as an identification and safety monitoring tool.
Motor carrier authority (MC number) represents actual operating authority granting carriers the right to transport property or passengers for compensation in interstate commerce. While DOT numbers identify carriers, MC numbers authorize their operations. Carriers engaged in for-hire interstate transportation need both DOT numbers and appropriate motor carrier authority, with the DOT number obtained first before applying for operating authority.
Federal Motor Carrier Authority
Federal motor carrier authority issued by the FMCSA authorizes interstate commercial transportation of goods or passengers for hire. This authority is mandatory for carriers whose operations cross state lines and involve compensation for transportation services. The MC number issued upon authority approval identifies the specific operating authority granted to the carrier.
Different authority types exist under federal motor carrier authority including common carrier authority and contract carrier authority. Common carriers must serve the general public at reasonable rates and without discrimination, while contract carriers operate under specific contracts with particular shippers. Understanding which authority type applies to your business model ensures you obtain appropriate authorization.
Interstate vs. Intrastate Authority
Interstate authority governs operations crossing state boundaries, falling under federal FMCSA jurisdiction. Carriers engaged in interstate commerce transporting property or passengers across state lines for compensation require federal motor carrier authority. This authority applies regardless of whether the carrier operates in multiple states regularly or makes occasional interstate trips.
Intrastate authority governs operations entirely within a single state, with individual states maintaining regulatory control. Many states require separate intrastate operating permits for carriers conducting for-hire transportation within state boundaries. Some states have minimal or no intrastate authority requirements, while others maintain comprehensive registration and permit programs. Carriers must research specific requirements in states where they operate to ensure full compliance.
How to Obtain Federal Motor Carrier Authority
Obtaining federal motor carrier authority begins with securing a DOT number, which is a prerequisite for the authority application. Once you have a DOT number, you can apply for operating authority through the Unified Registration System, an online platform that handles motor carrier authority applications, insurance filings, and related registrations.
The application process requires detailed information about your business including entity type, principal officers, business address, planned operating area, and types of cargo you intend to transport. You must select the appropriate authority type (common or contract carrier) and specify whether you need additional authorities such as broker authority or freight forwarder authority.
Insurance Requirements for Motor Carrier Authority
Motor carrier authority activation requires proof of adequate insurance coverage meeting FMCSA minimum requirements. For most property carriers, this means $750,000 minimum liability insurance, though hazardous materials transportation and other special operations have higher requirements. Insurance companies file Form BMC-91 or BMC-91X with the FMCSA to demonstrate coverage for motor carriers.
The MCS-90 endorsement must be included in your insurance policy, providing the federal government with a guarantee of coverage. Without proper insurance on file with FMCSA, motor carrier authority cannot be activated even if applications are approved. Insurance must remain active continuously, as lapses result in authority suspension.
BOC-3 Process Agent Designation
Federal motor carrier authority requires carriers to designate process agents in each state where they operate. The BOC-3 form accomplishes this designation, identifying legal representatives authorized to accept service of legal documents on the carrier’s behalf. Process agents ensure that legal notices and court documents can be properly served regardless of where the carrier is physically located.
Commercial services provide BOC-3 filing assistance and process agent representation across all states, simplifying compliance with this requirement. The BOC-3 must be on file with FMCSA before motor carrier authority can be activated, making it a critical step in the authority acquisition process.
Operating Under Motor Carrier Authority
Once motor carrier authority is active, carriers must display their MC number on commercial vehicles and maintain required documentation during operations. The MC number should be visible on both sides of power units, typically on the cab doors, ensuring easy identification during inspections and by shippers.
Carriers must maintain proof of insurance, authority documentation, and other required records for presentation during roadside inspections or facility audits. Biennial updates through the MCS-150 form keep the FMCSA informed of current business information and fleet composition, maintaining active authority status.
Motor Carrier Permits and Other Permits
Motor carrier authority differs from temporary permits used for specific movements. While MC numbers provide general authorization for interstate for-hire transportation, trip permits, fuel permits, and oversize permits address specific requirements for individual journeys or load characteristics. Carriers need motor carrier authority to establish their legal right to operate as for-hire carriers, then obtain additional permits as needed for specific loads or routes.
Professional permit services like Reliable Permit Solutions use your MC number as part of permit applications, demonstrating your authorized carrier status when securing trip permits, fuel permits, and oversize permits. The MC number confirms you operate legally as a for-hire carrier, supporting permit applications across various jurisdictions.
Professional Assistance
Obtaining and maintaining motor carrier authority involves detailed applications, insurance coordination, and ongoing compliance requirements. Professional consulting services can guide new carriers through the authority application process, ensuring all components are properly completed and filed.
For carriers focused on transportation operations rather than regulatory paperwork, professional services handle authority applications, biennial updates, and coordination with permit needs as operations evolve. This support allows carriers to concentrate on their business while maintaining full regulatory compliance.
Conclusion
Motor carrier permits establish the legal foundation for for-hire commercial transportation operations. Understanding the difference between federal motor carrier authority and state intrastate permits, obtaining appropriate DOT numbers and MC numbers, and maintaining insurance and process agent requirements ensures carriers operate within legal parameters.
For assistance with motor carrier authority-related permitting needs, contact Reliable Permit Solutions at (888) 949-4220. Their experienced team coordinates permits for carriers operating under motor carrier authority across the United States.