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Trucking CompanyTrucking LLC: 5 Steps Before Your DOT Number
Operating authority costs $300, and FMCSA does not refund mistaken applications. Why the legal name comes first, the $750,000 insurance minimum, the audit every new carrier has to pass, and the key Bizee screens, start to finish.
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Why an LLC for this business
The name
Application, insurance and process agent must match exactly
The risk
$750,000 minimum liability for most for-hire freight, 10,001 lb and up
The audit
Within 12 months. With CDL drivers, no testing program is an automatic fail
How to start it, in order
- A vehicle of 10,001 pounds or more in interstate commerce needs a USDOT number; many states require one in-state too.
- Hauling other people's regulated freight across state lines for pay also needs operating authority.
- Form the LLC first: FMCSA cautions that the business name must match exactly in every filing, or the authority is delayed.
- Apply under that name. Authority is $300 each, with no refunds for mistaken applications (as of Nov).
- Have your insurer file proof of coverage: $750,000 minimum for most for-hire freight in trucks of 10,001 pounds or more.
- Designate a process agent for each state (form BOC-3).
- Expect a safety audit within 12 months of starting. With CDL drivers, having no drug and alcohol testing program is an automatic failure.
Every fact in this guide was checked against a primary source before the video was made.
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