November 20, 2017
Do I Need Interstate or Intrastate Operating Authority? [Updated 2020]
Post last updated: July 8, 2020
Are you looking to start your own trucking company? Have you decided where you want to haul? What you want to haul? How you’re getting the truck you need to haul?
Before you even start hauling your first load, you’ll need to get proper licensing and registration. The question is, where do you even start? Here is just one piece of the big puzzle that is trucking regulations: Interstate vs. Intrastate Operating Authority. Our friends at Progressive Reporting created this video to help you understand what it is:
What Is Interstate Operating Authority?
If you want to haul loads interstate (across state or national borders), you’re most likely going to need your interstate operating authority. Other names for this authority are trucking authority or motor carrier authority.
Operating authority is tied to your Motor Carrier (MC) number. If you plan on getting both your DOT Number and MC Number, the Federal Motor Carrier Safety Administration (FMCSA) will list both of these numbers together. Here are two criteria to help you determine if you need your interstate operating authority:
1. Working For-Hire
Determine if your company is working for-hire. This means that if you are planning on hauling someone else’s property for a profit, then your company is considered for-hire. This is different than working in-house, where you or the company you work for is hauling their own property.
2. Crossing State or National Borders
Interstate means crossing state or national borders, so if you are planning on going through more than one state or country to deliver your loads, then you’ll most likely need your interstate operating authority.
Even if your company is running under these two criteria, there are still exceptions that may or may not require you to get your interstate operating authority or trucking authority. For example, if you’re hauling your own property, you probably don’t need your operating authority, even if you’re going across state borders. Give us a call at (866) 739-2032 to find out if you really need it.
What About Intrastate Authority?
Some trucking companies choose to run only in one state. If you choose to go that route, you’ll probably need something different, like your intrastate operating authority. Companies working intrastate still need proper registration, such as a DOT Number. Motor Carrier HQ can get your DOT Number for just $99.
While there are companies that can make a profit while only running intrastate (only in one state), you could be missing out on profitable opportunities with large loads that go through multiple states.
How Is Operating Authority Different Than a USDOT Number?
A DOT Number is like your driver’s license number, and your Operating Authority (or your MC Number) is an extra registration step to get your business running if you’re planning on operating in more than one state.
We’ve covered the differences between an MC Number and a DOT Number more thoroughly in this other blog post, but as an overview, here are three criteria that can help you determine if you need a USDOT number:
1. Operating a Commercial Vehicle
The FMCSA’s definition of a commercial vehicle that would require a USDOT number is a vehicle that:
- Transports HAZMAT that requires a safety permit in intrastate commerce
Or
- Has a gross vehicle weight or gross combination weight of 10,001 or more
- Can transport more than 8 passengers including the driver for compensation
- Can transport more than 15 passengers including the driver but is not used to transport for compensation
2. Participating in Commerce
If your trucking company is transporting loads in commerce, you’ll most likely need a DOT Number. This distinction is important because even if you are driving what may be considered a commercial vehicle for personal use, you probably do not need a DOT Number.
3. Location of Your Company
If you’re only planning on intrastate commerce, some states don’t require you to get a DOT Number, while others do. Here is a list of states that need a DOT Number even if you’re only planning on operating in one state.
How Do I Get Started
If you’re trying to start your own trucking company, you don’t have to do it alone. We know that you could do most of the paperwork yourself, but we can save you time and money. Place an online order for your DOT Number for $99 or get our whole operating authority package for $499.
If you aren’t sure what you need yet, give us a call. We work directly with you to make a customized game-plan that works best for your new company.