Do I Need a Motor Carrier Number?
If you are planning to transport cargo or people in exchange for compensation, you might need to learn more about the purpose and significance of a motor carrier number.
A lot of business owners ask whether they require an MC number.
What is an MC Number?
The operator’s number gives the company operational authority, and this requirement is backed by federal legislation throughout the United States.
However, the MC number will not protect a company in the same manner as the USDOT number.
Businesses must have an MC number when they transport directly or indirectly people across state lines to earn compensation.
Let’s now consider whether you’ll need an MC number for your business.
Do You Need an MC Number for Your Company?
Are you a “for hire” company?
However, there’s an Intrastate operating authority, which applies to certain companies that transport cargo and individuals within a particular state. The USDOT number is required for these businesses and you can learn more information about the USDOT number here.
How to Apply for an MC Number
It is recommended to begin applying for your MC number as soon as possible since getting an MC number may take a couple of months. The MC numbers must make an application via the FMCSA here. A valid credit card is required for the application cost, which is non-refundable.
In any case, you need to know that the MC number is frequently required by companies that transport cargo or persons. It’s best to apply for operating authority as soon as you can to avoid unnecessary delays or issues when traveling.
Can Carriers Legally Have 2 DOT Numbers?
In the past over years, the past, the Department of Transportation has been taking action to prevent drivers and carriers who drop an unfavorable DOT Number to get an all-new clean record. They are referred to as “chameleon carriers” because they attempt to blend into the new environment, thereby shielding their previous negative record.
Another popular term refers to “reincarnated carriers.” They are different in the sense that they are corporations that move assets around to avoid fees or compliance issues. Chameleon carriers close down and create new organizations to avoid compliance and fees.
The chameleon carriers can be harmful to the trucking industry as a lot of the operators are dangerous and disregard the hours of service maintenance of vehicles or trucks and/or customer support. Some companies make use of cardboard signs to change their DOT number and company name in the roadway to avoid roadside enforcement.
It is estimated that chameleon carriers have been implicated in three times as many severe crashes for new carriers that have led the DOT as well as other organizations to stop reincarnation or chameleon-type carriers.
Are all the carriers who have several DOT numbers trying to be fraud? No, not at all.
We’ve seen this a lot when farmers are following regulations, but who haul different things and fall under several classifications. .”
“A fertilizer hauler called us to request a different DOT number. If you decide to share equipment things could become ugly unless there’s an agreement in place for sharing it. .”
“For example, a fertilizer hauler could require the two numbers of DOT. One is for when he picks fertilizer to use in his farm, and another to deliver fertilizer for other distribution companies. If he’s collecting it for his personal use as well as delivering it to other distributors that require fertilizer, he’ll require separating the two entities since they have a private property farming operation as one as well as the commercial business as a separate entity. This is crucial because a farm and commercial enterprise wouldn’t run in the same way and insurance rates will differ as well. .”
What is the legal age to use more than two or more Dot numerals?
13902, 31134, and 49 C.F.R. 390.19T or 390.200T.
Every distinct and distinct individual has to have a separate registration .”
For partnerships, corporations, and other business organizations for which the USDOT number remains the same even if there is a change to the company’s officials, address, or other demographic data as well as the corporation or partnership business entity will continue its operations as the same legal entity.
The only reason an organization will require more than one DOT number is if they own two or more commercial driving companies.
Why should you choose the Compliance Navigation Specialists to handle your licensing and permit requirements?
This means that the business must have distinct entities while still having family ownership. This is often the result of the acquisition of a company or even the case of a big company with many divisions.
“For example, there is a company that has one tractor-trailer, bus transportation, and a pickup to haul empty containers from the ports,” explained Adam Galante of CNS. “It is not advisable to place them on an insurance contract. This is why we have them separated in separate entities.”
A lot of other companies opt for the option of having a single DOT number for their parent company, where the parent company holds the DOT number and appropriate insurance, and the subsidiaries are all included in the insurance rules.
If you decide to obtain either or both DOT numbers you should follow the correct procedures to ensure that you can legally operate your vehicle.
Are USDOT numbers transferable?
But, knowing the DOT numbers’ meaning when a merger or acquisition occurs is vital.
To answer your question, no USDOT numbers aren’t transferable, however operating authorities, or numbers from MC are transferable. This is due to USDOT numbers providing unique identifiers that track the history of safety for a particular company. The transfer of the USDOT number could have the effect of passing on the whole safety history of a company to a different entity.
Concerns about multiple DOT numbers could arise due to the safety past and experience with the number that is a DOT number, which decreases the insurance rate. If the two companies join forces and receive the new DOT number it will increase the cost of insurance since there is naturally more insurance for the new entrants who have no background of safety associated with the number.
Can someone have two DO numbers?
Numbers can help track the various vehicles and are a vital element in commercial transportation.
Does a person need to have two DOT numbers? The United States Department of Transportation indeed assigns numbers to commercial vehicles registered with the Department of Transportation. So, when a person owns two vehicles for commercial use, the person will have two DOT numbers.
To get the two numbers DOT, one has to complete a registration procedure for two different commercial vehicles. The DOT number will allow you to drive commercial vehicles in states that have this condition.
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All About the Vehicle
However, that’s not the reality. It is the Department of Transportation that assigns numbers to cars, not to individuals driving those vehicles.
If you have several commercial automobiles, each requires its number so that the DOT can track all of them.
- A vehicle designed for commercial use in many states requires a number from the Department of Transportation.
- This is a requirement for carriers that have a weight more than the weight of a certain quantity although the amount isn’t clear.
- The vehicles that transport paying passengers must have a DOT number. Unfortunately, the exact number of passengers also isn’t clear.
- To be eligible for the DOT number your vehicle needs to be licensed before the number is given to it by FMCSA. Federal Motor Carrier Safety Administration (FMCSA).
- The FMCSA will assign a unique ID number for each commercial vehicle registered with the FMCSA that needs a DOT number.
This means that if someone uses two commercial vehicles they’ll have two DOT numbers.
Do You Need a DOT Number?
Before you begin the process of obtaining the number, you must determine if you require one. Although numbers aren’t expensive, however, the process can be a bit overwhelming and consume many hours.
There are many instances when you’ll require a DOT number, however, there are some instances that don’t require it. A vehicle that weighs at least 10,001 pounds has to be registered and possess an identification number.
Do You Need 2 DOT Numbers?
If you own commercial vehicles in two different organizations or entities, you’ll need two numbers. However, getting a second DOT number isn’t easy depending on how you find each number you require.
- Check that the two businesses are distinct.
- You must have a separate tax ID for each business which requires a DOT. This way it won’t happen that there is confusion when applying for a second tax ID.
- This could be a business partner or driver you have a relationship with. Make sure that the person you are contacting is comfortable using their social security numbers of theirs.
How to Get a DOT Number:
If you are applying for a DOT Number, you may also want to apply to the operating authority.
You might want to apply an application for your MC number in conjunction with the DOT numbers. This will make it easier for the FMCSA to take care of your application. Make sure that you have at least $300 to cover your MC Number.
While the DOT number is free, however, the payment to operate authority is mandatory. We’ll now explore how you can obtain a DOT number.
The first thing to do is log on and visit the FMCSA website. The site is where you can find the online applications for each registration and number. When you receive approval, you’ll be given the DOT number for life.
What Is DOT Certification?
If you’ve earned DOT certification, it means that the DOT is recognizing that you are a skilled driver.
Certain states require accreditation to operate semi-trucks transport vehicles for delivery as well as other commercial vehicles. The certification process involves a physical test as well as a series of driving tests.
Even if you’re working independently, you should take a look at getting certified before driving a commercial vehicle.
Final Thoughts
The only instance where you’d require two numbers is when you have two distinct commercial driving companies.