Your operating authority will eventually allow you to operate as a small business. If you’ve been an owner-operator in the past, then applying for your own operating authority will expand your options and ensure you can legally serve customers and clients in a variety of locations. Your operating authority will allow you to serve more clients, perform more types of work, and ensure you are running your business in full compliance with the law. One frequently asked question is whether you can operate outside your base state if you’ve applied for operating authority. We’ll address this question.
Can I operate outside my base state if I’ve applied for operating authority?
Applying for your operating authority is the first step, but until your authority is approved, you won’t be able to transport items across state lines. Expect to wait for your operating authority to be complete. Once it is, you’ll be fully able to cross state lines. Get familiar with the following steps to make sure you are able to transport items across state lines and build your own business via your own operating authority. If you miss one of these key components, your operating authority permissions could be delayed. Learning more about how operating authority works when it comes to interstate transportation ensures that you can deliver freight to the places you need to go, worry-free.
What is Operating Authority for trucking?
If you operate across state lines and offer services over 10,000 GVW, you must have operating authority from the Department of Transportation to do so. You’ll need an official business name and to put some thought into the way you set up your business. Whether you choose a sole proprietorship, LLC or other corporation, that structure will stay with your business for years to come. An operating authority can be issued to you personally or to your business as an entity. Once issued, it can’t be transferred, but it can be suspended or revoked by the Department of Transportation.
When you apply for your Operating Authority, you’ll need to be an official business and to be able to prove that you have the right level of insurance for your particular type of business. Insurance rates vary based on the cargo or freight you carry, where you plan on doing business, and your driving and safety records.
Once you apply and your application is approved, you will be able to transport cargo, freight, and passengers within the states you are insured to do so. Once your operating authority is approved, you’ll still need to maintain a high safety rating and comply with all regulations. Your authority is dependent on your ability to follow the rules of the road and to maintain the right safety level. If you have too many violations, fall short on any key requirements, or perform poorly in inspections, your operating authority and ability to transport goods to other states could be jeopardized.
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If you’re in need of trucking insurance, we can help. Our transportation insurance agents can help you get the insurance you need to protect your business. You can get started with quotes by filling out our online form, giving us a call, or messaging us on LiveChat.