If you are new to the trucking industry, then you may have heard the term MC Number.
Having an MC Number is an essential step in starting your trucking business, especially if you are
planning to operate nationally. But, with a lot of business responsibilities on your plate, obtaining an MC number can seem overwhelming. We have broken down the steps to easily obtain an MC number.
What is an MC Number?
The motor carrier (MC) number serves as a distinctive identification code assigned by the Federal
Motor Carrier Safety Administration (FMCSA) to commercial freight carriers transporting goods
across state lines. If you want to cross state lines, having an MC Number is a requirement.
While it’s not mandatory to display this number on licence plates, it is required to be displayed on
both sides if the commercial motor vehicle (CMV) in a contrasting color when operated in interstate
commerce.
Why Do You Need an MC Number for Your Company?
As a logistics company transporting goods across state lines, an MC Number is required for several reasons. This includes:
Interstate
An active MC number is required for interstate commerce authority.
However, the need depends on the specific cargo being transported.
For Hire Carriers
If your company operates as a for hire carrier that transports people or federally regulated commodities across state lines, you need to obtain an inter-state operating authority
MC Number.
Intermodal Freights
Even if you’re moving goods within your state, having an MC number might be necessary for certain types of cargo like intermodal freights.
How to Obtain an MC Number?
Step-1: Set Up Your Business Entity
Before applying for MC authority, ensure your trucking business plan aligns with FMCSA criteria, covering cargo, operations, and company type. Obtain an Employee Identification Number from the IRS and pre-approval for liability and cargo insurance to
avoid delays.
Without insurance pre-approval, your MC authority application may be halted. Since the process takes up to 60 days you should have enough cash for the application and operational costs for 45-60 days after starting, as it may take that long to receive payments from your first loads.
Business entity setup costs range from $50 to $500 and insurance costs vary from $9,000 to $12,000 per year based on factors like location and other considerations.
Step-2: Apply for Your DOT and MC Number
Before applying for your MC Number, you should first get your DOT Number from FMCSA registration. New applicants should use the United Registration System (URS) for registration.
After securing a USDOT number, you can then move forward to obtain your MC authority. To get an MC Number, you need to fill out an FMCSA registration form.
In the application form, you must provide your business and truck information, including your Vehicle Identification Number (VIN), model year, weight, and more.
Step-3: Process BOC-3 Documentation
To file BOC-3 paperwork, you’ll need a process agent. The FMCSA has a list of agents skilled in handling this paperwork.
When you file BOC-3, you are granting the process agent the authority to handle legal documents for your trucking company. This applies to each state where you operate.
These agents usually charge between $10 and $50 to take care of your BOC-3 filing.
Step-4: File UCR
The UCR (Universal Carrier Registration) is like a permission slip showing you have insurance in the states where you work. Before applying for UCR, you need your MC Number and USDOT number.
Don’t forget this step because not having the UCR permit can lead to penalties. The fee for UCR is $69 if you have 0 to 2 vehicles.
Step-5: Pay Heavy Duty Vehicle Tax
Heavy Duty Vehicle Tax or HVUT will be paid by all heavy-use vehicles running on the public highways. Complete and send Form 2290 to the IRS for filing.
You can’t sign up for the International Registration Plan (IRP) until you’ve submitted Form 2290. Your payment is based on the distance and location of your cargo transport.
Step-6: Initiate IRP Registration and Create an IFTA Account
An IRP is an agreement between 48 states and Canada, allowing you to register your vehicles in one place and then pay shared license fees to operate in multiple jurisdictions. The fees depend on how much time you spend in each area and typically
range from $1,500 to $2,000 per vehicle.
You must also establish an IFTA (International Fuel Tax Agreement) account. This is necessary if your vehicles travel across two or more relevant jurisdictions or if your gross vehicle weight exceeds 26,000 pounds or involves three or more axles.
Step-7: Register for Drug and Alcohol Checks
Once you’ve secured your MC authority, USDOT number, and necessary permits, there’s a crucial final step before you hit the road with your first load. Every driver must enroll in a drug and alcohol testing program as mandated by the FMCSA.
The regulations set by the FMCSA and USDOT outline the testing process, substances checked, and testing frequency. Detailed instructions from the FMCSA guide you on how to follow these rules and stay compliant with their drug and alcohol testing
requirements.
After finishing the mentioned steps, go back and thoroughly review everything. Ensure you have all the necessary paperwork, including permits, IFTA stickers, registration papers, and any other documents needed for regulatory compliance in your truck.
Exploring the Differences: DOT Number vs. MC Number
Now that we’ve covered the steps for obtaining an MC Number, let’s move forward and understand the
difference between MC and DOT numbers.
1. What is a USDOT Number?
A United States Department of Transportation (USDOT) number is a 17-digit motor identification
number issued by the Federal Motor Carrier Safety Administration (FMCSA). These are unique
identifiers assigned to the company operating commercial motor carriers like interstate or intrastate.
USDOT numbers are required to be used by both commercial and private vehicles operating on public
roads. These numbers can be used for safety checks and inspections.
If you’re planning to move your vehicle using transportation services and want to check if the company complies with all the regulations stated by the government, you can simply enter the USDOT number
into the official movers’ database.
2. What is the Purpose of a DOT Number?
The DOT number plays a crucial role in uniquely identifying and regulating commercial motor vehicles
and their operators. It functions as a key identifier for each registered entity within the FMCSA system.
The Motor Carrier (MC) Number plays a pivotal role in the transportation industry by granting the necessary authority to move goods or passengers across state lines in adherence to federal regulations.
Essentially, it acts as a legal authorization issued by the FMCSA, enabling carriers to engage in interstate commerce.
3. Understanding the Difference Between a DOT & MC Number
A USDOT Number identifies carriers with authority to operate interstate commerce while an MC number identifies a carrier who has operating authority to transport regulated commodities for hire in interstate commerce.
4. Where is a DOT Number Displayed?
DOT numbers are visibly displayed on the cab of commercial vehicles and are identifiable by the prefix
“USDOT.” This regulatory requirement ensures that the unique identification number assigned to a motor carrier is easily visible to enforcement authorities and the general public.
MC numbers, like DOT numbers, are typically displayed on the cab of commercial vehicles. However, they differ in format and appearance. MC numbers are generally shorter than DOT numbers and often include the state abbreviation where the company is based before the numerical portion.
5. What are the Number of Classifications?
Each company, regardless of its size, is assigned a single DOT number by the government. This number consolidates all the required information about the company in a single database, acting as a centralized identifier.
In contrast, a company can have multiple classifications under a single MC Number, particularly if they transport a variety of goods across the state.
6. Who is Required to Have an MC number?
Moving companies operating commercial vehicles across state lines must have a USDOT number. Moving companies that transport goods or passengers across state lines as a part of their business operations must have an MC number.
7. How Can You Obtain an MC Number?
To get an MC Number, you have to first obtain a USDOT Number from the FMCSA website. The USDOT
number is crucial for all commercial vehicles operating in the United States.
Once you have your USDOT number, visit the FMCSA website, sign up, fill out the form and pay the required fee. This makes sure your company is officially registered and follows all the rules set by the FMCSA.
Frequently Asked Questions
What documents are needed to apply for an MC Number?
To obtain an MC number, you generally need the following documents:
● USDOT number
● Proof of insurance
● Business entity information
● Tax identification number
● Vehicle details
● Process agent designation
Do I need an MC Number for intrastate transportation?
No, you don’t need an MC Number to operate your vehicle intrastate. An MC Number is only required if you transport your carriers across the state lines.
How long does it take to obtain an MC Number?
Normally, FMCSA issues MC numbers within 24 hours. However, it takes around 20 to 25 days for an MC Number to get activated. This is because all the new MC Numbers issued by FMCSA have to go through the protest period before they get activated.
Can I check the status of my MC Number application online?
Yes, to check the status of your MC Number online, you will need to go to the Safety and Fitness Electronic Records (SAFER) system online. Under the heading, FMCSA searches, click on Licensing and Insurance. Then, enter your MC number or USDOT number and click search.
How often do I need to renew my MC Number?
Your MC Number must be updated every two years, according to the guidelines provided by FMCSA.
