Essentials for starting a small-scale moving business

There are many businesses that have a potential to grow over minimal initial investments. A moving and transportation system is also among them. Many investors are usually interested in exploring the potential of this form of business. Trucking businesses can provide a reasonable profit margin for the owners, and it also has the potential to grow and prosper in the future. People are often stuck on the question of how to start a small moving company?

There are a few essentials that should be kept in mind while pursuing a small-scale trucking business. Drafting a business plan, buying essential equipment, getting a license, starting a website, and launching arbitration programs can be named as a few of them. In this article, we will try to elaborate the entire vehicle registration process for the readers. It will also act as a guide for them on acquiring an MC number for their vehicles.

Registration to startup a moving business

Like many other federally regulated businesses that come under federal laws, trucking companies have to sign up for recommended registrations. If you work with or own a trucking company, you should know the roles and importance of these registrations. These registrations grant authorities to operate as transporters and carry loads based on the type of your authority. One type of authority is the trucking authority which comes with getting an MC number from the Federal Motor Carrier Safety Administration.

Getting trucking authority without any hassle is a great success for a startup trucking company. The process itself is not very difficult but is lengthy and requires a great deal of documentation.  Lack of the right amount of knowledge is the fundamental reason why most people are confused about whether they need an MC number. In this article, we will answer the question; what is a Motor Carrier, and how to get an MC number. All the information available here complies with the data available on the official website of the Federal Motor Carrier Safety Administration.

What does it mean by MC number?

MC number or the operating authority is a unique identification number given to interstate carriers. All those carriers who need to cross state borders and transport goods and passengers internationally fall under the category of interstate carriers. Mainly interstate carriers include tankers, reefers, or dry vans. People often use MC authority DOT authority which is not totally right. They are similar but not the same. USDOT or simply DOT number is assigned to carriers transporting or operating within a particular state.

Other names that are commonly used for MC numbers are trucking authority, operation authority, FF, and MX numbers. The providence and procedure of the MC number are looked after by the government agency, the Federal Motor Carrier Safety Administration. An MC number will work as a unique identifier for your company which will help the administration to keep track of your working through their system, conduct monitoring rounds, make sure you are providing standard services according to customer demands and analyze your customer’s response.

Who needs an MC number?

The Federal Motor Carrier Safety Administration has identified carriers that need to have the MC number in addition to a USDOT number. According to their terms, any carrier that transports passengers across the state borders known as the interstate carrier is required to have an MC number if it works on-hire terms or for compensation. The carrier may directly take compensation from the buyer or be indirectly involved as a broker between the buyer and seller. In addition to that all those suppliers that transport federally regulated commodities in interstate commerce for compensation. Again, the carrier carrying federally regulated commodities can be the owner or maybe involved in arranging for their transport.

You need to have multiple authorities If your business falls in more than one category specified by the administration. The type of authority may govern what kind of operations and cargo a carrier is allowed to carry. It is essential to review categories as defined by the Federal Motor Carrier Safety Administration before applying for the MC number, as the application fee is non-refundable.

How to get the MC number?

If you are planning on opening your own trucking company, you will likely want to know about the procedures required to issue an MC number. For getting an MC number, you need to submit a number of documents. Therefore, it is important that you get the EIN for your company before filing an application.

To issue the authority, one has to use the Unified Registration System. The Unified Registration System is the replacement for several older registration protocols. It is a single platform for online registration. While you file an application for getting an MC number, you will have to pay the $300 registration fee. It is a bit lengthy process; hence it is important that you have all the required information in access to avoid further delays.

The authority is considered non-functional unless you submit insurance and get it approved from the Federal Motor Carrier Safety Administration. After filling the application, you can talk to insurance agents and discuss the right plan for your company. After that, you will have to register for the Unified Carrier Registration system, which is like funding the government to maintain road safety. In addition to that, you will have to register for the International Registration Plan and International Fuel Tax Agreement. Furthermore, if your vehicle weighs above 55000 pounds, you will also have to register for Heavy Vehicle Use Tax.

The final word!

To run a trouble-free trucking company, it is important that you get an active MC number before operating. The main important types of operating authorities are those for motor carriers, brokers, and freight forwarders.