1. Registration and operating authority
- USDOT number: free to apply for through FMCSA's registration system.
- MC (operating authority): FMCSA charges a $300 filing fee for each type of authority.
- BOC-3 process agent: a one-time filing, usually done through a process agent company for a small fee.
- UCR (Unified Carrier Registration): an annual fee based on fleet size.
After approval there is a protest period before your authority becomes active, and your insurance must be on file with FMCSA first.
2. Insurance (usually the biggest surprise)
Federal rules require at least $750,000 of liability coverage for most for-hire general freight carriers. Most brokers ask for $1,000,000 liability and $100,000 cargo. New authorities pay the highest premiums because they have no history, so get at least three quotes and budget for a down payment.
3. Taxes, plates and permits
- IRP apportioned plates: cost depends on your base state and where you run.
- IFTA license and decals: needed to run in more than one state. See the IFTA guide.
- Form 2290 heavy vehicle use tax: due for trucks of 55,000 lbs or more, up to $550 a year.
- State permits where needed, such as New Mexico, Kentucky, Oregon and New York weight-distance permits.
4. The truck and trailer
This is the largest cost. Check the monthly payment, total interest and what the payment adds per mile with the semi truck loan calculator. Keep a repair fund for a used truck.
5. Equipment and services
- ELD device and subscription
- Load board subscription
- Drug and alcohol testing consortium enrollment
- Accounting software or a bookkeeper
6. Working capital
Brokers often pay in 30 to 60 days, while fuel is due today. Plan for at least two to three months of fuel, insurance and payments in cash, or use factoring to get paid faster. Check the recourse vs non-recourse guide before you sign a contract.
Before you start
Build a full monthly budget in the cost per mile calculator. If the break-even rate is above what your lanes pay, fix the plan before you file.
Common questions
How much does an MC number cost?
FMCSA charges $300 to file for operating authority. Insurance, plates and permits cost much more.
What insurance do I need for my own authority?
At least $750,000 liability by federal rule for most general freight; most brokers require $1,000,000 liability and $100,000 cargo.