Home Business Insights & Advice Interstate or intrastate authority: Which one you need for your truck company?

Interstate or intrastate authority: Which one you need for your truck company?

by John Saunders
5th Jan 21 4:12 pm

If you have decided to start your own truck company, then you have made an excellent decision. It is an excellent business that will bring you significant profit if done right. However, starting a trucking company is not just about deciding what you want to haul and where you want to haul it. You will also have to get a few licenses and registration before you start hauling things on your truck. From USDOT certification to getting an interstate or intra state permit number, you will have to get everything in order before you begin your processes. If you are not sure whether your truck company needs intrastate or interstate authority, then you have clicked on the right blog. Below I have mentioned a few important points that will help you understand what kind of authority your business needs. Let’s take a look:

Interstate operating authority

If you are wondering what interstate authority is, then the answer to the question is in the name itself. With an interstate authority number, you will be able to move goods across the states or national borders. If the company you are starting will be taking goods from one state to another, then this license is a must-have for you. Interstate authority is also known as Motor carrier authority, and the number you are given for it is referred to as MC number. You must keep in mind that you will be needing both MC and USDOT for moving things from one state to another. Intestate authority number is required for the following:

A for-hire company

If you are a for-hire company, then you will need an interstate authority permit. A “For-Hire” company is basically a company that is getting paid to move someone else’s property from one place to another. If you are a company that is moving their own goods, then you wouldn’t need this license.

Transporting across states or national borders

If your truck company is taking goods from one state to another, you will definitely need an interstate authority license. This is why your trucking company needs to define early on whether it will only offer services within the selected state or to other states as well.

You must also keep in mind that there are certain conditions in which you might not require an interstate authority number even when you are moving goods to another state. However, you will have to get in touch with an expert who can evaluate your truck company and guide you accordingly.

Intrastate operating authority

Not everyone starts big, and some companies decide to run their business within their selected state only. As it is evident by the name, an intrastate authority or number is required by those transportation businesses who are going to move their or other people’s property within their state. However, you must keep in mind that even if you are offering your services within the state, you will still need a USDOT number.

Why intrastate authority?

When you decide to go for intrastate authority only, you are basically giving up on the profit you can make by transporting goods across the states or national borders. However, for someone who doesn’t have a big budget and doesn’t want to take unnecessary risks starting small is not a bad option at all. You can begin by offering your services in one area, and once you feel like you are in a good enough spot, you can later apply for an interstate number for your business.

When is the best time to apply for interstate or intrastate operating authority?

The best time for getting an interstate or intrastate permit number is before you start hauling things onto your truck. Keep in mind; you will not be able to move any goods from one place to another in your trucks without these licenses and permits. So, it is advised that you apply for it as soon as your company has fulfilled the basic requirements.

Why do you need both USDOT and the operating authority?

You need both of these licenses because, without them, you cannot perform your business duties. The DOT number is like your driver’s license, and your MC or operating authority is another permission that lets you carry out your business with freedom.

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