How Much Does It Cost To Start My Own Authority?
The most common questions I get from drivers looking to start their own authority is: "How much is this going to cost?"
Here are some of the common costs to going out on your own.
1. Dot Number/ MC Number/ BOC-3/ UCR- $400. This includes the $300 FMCSA fee, $40 for BOC-3 and around $50 for UCR. These are all required if you want to have an active authority and run out of state.
2. IRP Plates- $1500-$2000 depending on the state. Each state is a bit different, but this is the average cost for buying plates and setting up your IFTA account.
3. Insurance- $15000-$25000 per year. Usually 15-20% down payment. This is a wide range and there are a lot of factors including: Age and value of equipment, Driving experience, driving record, and the state you are in. New Ventures are usually the most expensive and if you get a few years under your belt with no claims, we often see rates go down.
4. Drug and Alcohol Testing Set Up and other permits (KYU, NM, OR, NY) -$300-$400. All companies are required to registered in the FMCSA Clearinghouse system. If you travel into the above states you may need to set up annual or trip permits to visit as they all have special regulations and additional taxes.
5. Money set aside for operating costs such as fuel and maintenance- It's hard to put a number here, but if you are going to be running loads and won't be paid for 15-30 days you need to have some money set aside to operate until cash starts rolling in.
This list is assuming you already have a truck and trailer, but hopefully it gives everyone an idea of what is required to go out on their own and how much it will cost!
Give me a call if you have any questions or want to get this process started!
[email protected] 417-262-5511