Selling Your Trucking Authority: A Complete Guide

Introduction: Navigating the Transfer Process

Thinking about selling your trucking business and wondering what happens to your operating authority? You're not alone! The process of transferring your Motor Carrier (MC) number can seem complex, but it's actually quite straightforward. This guide breaks down the steps involved in transferring your trucking authority when selling your entire operation.

Here's what you'll learn:

• The key rules surrounding MC number transfers.
• How to properly notify the FMCSA of the transfer.
• Important considerations to ensure a smooth transition.

Understanding Operating Authority Transfers: What You Need to Know

The most important thing to understand is that you cannot sell your operating authority (MC number) individually. The FMCSA only allows the transfer of your MC number as part of the sale of your entire trucking operation. Think of it like selling a restaurant – you're not just selling the business license, you're selling the whole business!

This typically happens in situations like:

• Corporate Mergers: When two trucking companies combine.
• Acquisitions: When one trucking company buys another.
• Corporate Restructuring: When a company reorganizes its structure.

Key Takeaway: You can't sell just your MC number. It must be part of a larger business transaction.

The Good News: No More Pre-Approval!

In 2013, the FMCSA eliminated the requirement for pre-approval of operating authority transfers. This means you no longer need to wait for the FMCSA to give you the green light before finalizing the sale. However, you are still required to notify the FMCSA of the transfer.

Actionable Advice: Don't assume you can skip notifying the FMCSA just because pre-approval is no longer required. Proper notification is crucial!

Notification Process: How to Inform the FMCSA

While pre-approval is gone, the FMCSA still needs to be informed about the transfer. Here's how to do it:

Option 1: Submit a Ticket Through the FMCSA Website

This is a simple and direct way to notify the FMCSA.

Step-by-Step Guide:

1. Visit the Ask FMCSA page.
2. Click on the "Submit Us a Ticket" icon.
3. Fill out all the required fields with accurate information.

Option 2: Provide Required Information from Both Parties

Whether you submit a ticket or contact the FMCSA through another channel, you'll need to provide specific information from both the seller (transferor) and the buyer (transferee).

Information Required from the Seller (Transferor):

• Legal name and address associated with the MC number.
• US DOT number.
• MC number being transferred.
• Reason for the transfer (e.g., retirement, business closure).
• Effective date of the transfer.

Information Required from the Buyer (Transferee):

• Similar identifying information about their business operations.
• Ownership details.
• Business form and address.
• Names of owners and officers.

Actionable Advice: Gather all the required information from both parties before you start the notification process. This will save you time and prevent delays.

Important Considerations: Avoiding Common Pitfalls

Here are a few crucial points to keep in mind during the transfer process:

• No Application Form or Fee: Forget about lengthy application forms and hefty fees! Since 2013, there's no formal application or $300 fee associated with operating authority transfers.

• DOT Numbers Are Non-Transferable: This is a big one! While the MC number can be transferred with the business, the DOT number cannot. The buyer (transferee) must obtain their own DOT number.

  Actionable Advice: The buyer should apply for a new DOT number well in advance of the transfer date to avoid any operational disruptions.

• Business Continuity is Key: Remember, the transfer is only valid if it involves the sale of the entire operation. You can't just sell the MC number.

• Regulatory Compliance is Paramount: The FMCSA keeps a close eye on these transfers to ensure everyone is playing by the rules. Make sure you're following all regulations to avoid potential issues.

Staying Compliant After the Sale

Even after the sale is complete, it's important for both the buyer and seller to understand their ongoing responsibilities. The seller needs to ensure all their records are properly archived, and the buyer needs to maintain compliance with all FMCSA regulations.

Actionable Advice: Consult with a transportation attorney or compliance specialist to ensure you're meeting all your obligations.

Conclusion: A Smooth Transfer for a Successful Sale

Selling your trucking business can be a complex process, but understanding the rules surrounding operating authority transfers can make it much smoother. By following the steps outlined in this guide and paying attention to the important considerations, you can ensure a successful transfer and a seamless transition for both you and the buyer.

Call to Action

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Further Reading

• FMCSA Operating Authority Ownership Change FAQ
• Transfers of Operating Authority Registration
• FMCSA Guidance on Buying and Selling MC Numbers