Frequently Asked DOT Compliance Questions
TABLE OF CONTENTS
Last updated: 01/13/2026
DOT Numbers and Operating Authority
What is a USDOT number and do I need one?
A USDOT number is a unique ID that the FMCSA gives your company. It lets them track your safety record, inspections, and compliance reviews. You need one if you haul cargo or passengers across state lines. You also need one if you carry hazardous materials that require a safety permit. Your DOT number & company name must be displayed on your trucks according to FMCSA rules.
Almost all states require a USDOT number if you only operate within that state and do not cross state lines, depending on what vehicles you use.
If all you need is a DOT number without an authority, TIPS will file it for you for free.
What's the difference between a DOT number and MC number?
A USDOT number identifies your company for safety tracking. An MC number gives you permission to haul freight or passengers for pay across state lines. If you’re for-hire and crossing state lines, you need both.
Private carriers who only haul their own goods will just need a USDOT number. Brokers and freight forwarders need different authority types but still file for a DOT number.
How much does it cost to get my MC authority?
The FMCSA charges $300 to file for MC authority. But your total startup costs will be higher. Plan for $2,000 to $5,000 when you add in insurance, BOC-3 filing, UCR registration, and compliance setup. TIPS provides a DOT number, Authority, and BOC-3 package to get your new authority started and has start-up packages available to make starting a new authority easy.
You should budget for drug testing enrollment, ELD equipment, and initial compliance setup, which will depend on things like the types of vehicles you use, the states you drive in and so on. These costs protect your authority, ensure you operate legally, and help you pass your first safety audit.
How long does it take to get a trucking authority activated?
After you file your MC authority application, you must wait about 21 days. This is a mandatory waiting period. During this time, get your insurance and file your BOC-3. Once the waiting period ends and you meet all requirements, your status changes from "Pending" to "Authorized."
Use this waiting period wisely. Set up your drug testing program if required, organize driver files, and create safety policies. Being ready from day one helps you pass your New Entrant Safety Audit and keep your DOT number & authority active.
What is a BOC-3 Filing and why do I need one?
A BOC-3 names process agents in every state where you operate. These agents receive legal papers for you if someone sues your company. The FMCSA requires all for-hire carriers to have a BOC-3 on file. Your authority cannot become active without it.
Process agent services usually cost $30 to $75 per year. TIPS offers a lifetime BOC-3 filing for only $68 — no annual costs. You can file agents yourself, but almost all carriers use a blanket service that covers all states. If you file yourself, you have to make agreements with registered agents in every state, which will certainly cost you more time & money than having a blanket service file for you.
Is the USDOT Number free?
Yes, getting a USDOT number from the FMCSA costs nothing. But many third-party services charge $50 to $200 for help with filing. TIPS files your USDOT number for free. We help new carriers avoid extra costs and make sure the application is done right so you don’t accidentally pay for authorities you didn’t need.
If you file it yourself, be careful of third-party sites that have words like “DOT” and “FMCSA” in their name but are not actually the FMCSA’s website. These sites charge to file your DOT number and often include filings & other services you don’t need. You can file directly on the FMCSA’s website here.
What is a motor carrier authority (MC number)?
Motor carrier authority (MC authority or MC Number) is federal permission to work as a for-hire carrier who is involved in interstate commerce. It lets you haul freight or passengers across state lines for pay. Without proper authority, for-hire carriers can be fined up to $16,000 per violation.
Your authority type must match what you do. Hauling freight for shippers needs common property carrier authority. Moving household goods needs extra HHG authority. Carrying passengers needs passenger carrier authority, and so on.
How do I start a trucking company?
First, form a business (LLC or Corporation) and obtain an Employer Identification Number (EIN). Then get your USDOT number (free), apply for MC authority ($300), buy insurance ($750,000 BIPD minimum policy), file your BOC-3, register for UCR, and identify what compliance requirements apply to your type of operation. Compliance requirements often include things like Driver Qualification Files, Drug & Alcohol Testing, an FMCSA Clearinghouse Account, IFTA & IRP, and others. Total startup costs, including insurance payments, can total over $10,000 depending on what kind of business you want to run.
Working with a compliance service like TIPS from the start helps you meet all requirements correctly and allows you to start operating sooner. It also prepares you for your New Entrant Safety Audit in your first 12 months.
What are the steps to get operating authority?
Step 1: Apply for a USDOT number through the FMCSA website.
Step 2: Finish your application with the $300 fee for the MC number.
Step 3: Get commercial insurance and attach it to your MC before the 21-days is over.
Step 4: File your BOC-3 before the 21-days is over.
Step 5: Wait for the 21-day waiting period to end.
Step 6: Your MC number / authority becomes authorized once all conditions are met and the waiting period is over.
Each step has its own rules and timeline. Missing any piece keeps your authority in "Pending" status and stops you from operating. Even with an active MC, you are not ready to start operating until all of your compliance requirements have been met.
Safety Audits and Compliance Reviews
What is the New Entrant Safety Audit?
The New Entrant Safety Audit is a required FMCSA review of your safety systems. It happens within your first 12 months of operation. Auditors check your driver files, drug testing, hours of service, vehicle maintenance, and insurance. If you fail, you can lose your authority.
The audit looks at whether you have real safety systems in place. Auditors want to see that you are actively managing safety, not just keeping paperwork. This is why it’s important to understand the Federal Motor Carrier Safety Regulations (FMCSRs) or work with compliance experts like TIPS to keep you informed and manage compliance for your company.
How do I prepare for my DOT safety audit?
To prepare for your safety audit, organize your paperwork in six areas: insurance and permits, driver qualification files, hours of service logs, vehicle maintenance records, hazmat procedures if needed, and drug testing records. You should start preparing for your audit from day one, as you don’t know if your audit will be 2 months after you start, or 10.
TIPS helps carriers pass on the first try. We’ll either help you manage all of your compliance from the very beginning, or we can review your files before the audit and help you fix any gaps.
What documents do I need for my safety audit?
You need driver qualification files with applications, driving records, medical cards, and road test forms. You also need proof of insurance, vehicle maintenance records (including an annual vehicle inspection report), hours of service logs, and drug testing records. Owner-operators need their own driver file and proof of consortium membership.
One missing document can cause a violation or be considered an automatic failure. Keep your files organized so auditors can find what they need quickly. For 40+ documents, forms, and templates to help you meet these requirements and pass your audit, learn more about the TIPS Trucker’s Toolbox.
What causes automatic failure of a safety audit?
You automatically fail if you use a driver who tested positive for drugs or refused a test. You also fail if you operate without insurance, use a disqualified driver, or have no drug testing program. Additionally, failing to comply with Hours of Service requirements or failure to provide Records of Duty for your drivers will result in an automatic failure. These violations give you an Unsatisfactory rating right away and can end your authority.
These are called "acute" violations because they create immediate safety risks. You cannot fix them after the fact. Prevention is the only option. Review the 16 Automatic Failure criteria.
What happens if I fail my safety audit?
If you fail with an Unsatisfactory rating, the FMCSA sends you a notice. You usually get up to 60 days to fix the problems and submit a complete Corrective Action Plan. If you do not fix them, your operations will be suspended and placed out-of-service. For serious violations, they may stop your operations right away.
A "Conditional" rating also requires fixes within a set time. Only a "Satisfactory" rating lets you keep operating without restrictions.
What is a CSA score and why does it matter?
CSA scores measure how safe a carrier is. The FMCSA tracks seven categories. High scores mean problems and can trigger audits or investigations. Shippers and brokers also check these scores when picking carriers. Bad scores can cost you business.
Your scores come from roadside inspections, crash reports, and investigation results. Managing your CSA scores is an ongoing part of compliance. Working with a compliance provider like TIPS helps to ensure your CSA scores remain acceptable by brokers & shippers by managing your compliance and preventing violations.
What is a BASIC score?
BASIC stands for Behavior Analysis and Safety Improvement Categories. These are the seven areas the FMCSA uses to rate your safety. They include Unsafe Driving, Hours of Service, Driver Fitness, Drugs and Alcohol, Vehicle Maintenance, Hazmat, and Crashes. Scores above certain levels trigger action from the FMCSA in the form of disciplinary action or additional audits / inspections.
Each BASIC compares you to other carriers of similar size. Lower scores are better.
Drug and Alcohol Testing Requirements
What is the FMCSA Drug and Alcohol Clearinghouse?
The Clearinghouse is a federal database that tracks CDL driver drug and alcohol violations. Employers must check it before hiring drivers and once a year for current drivers. Drivers with violations in the system cannot drive commercial vehicles until they complete return-to-duty steps.
The Clearinghouse creates transparency across the industry. It stops drivers with violations from hiding their history when they change jobs. Owner-operators who drive CDL-required vehicles and employers who hire CDL drivers need to create an Employer Clearinghouse Account.
Do owner-operators need to register for the Clearinghouse?
Yes. Owner-operators must register for an Employer Clearinghouse Account and mark the option that states they are an owner-operator. You must run queries on yourself. You also need to pick a consortium to handle your drug and alcohol testing program, as you can’t randomly test yourself. Your testing needs to be handled by a Consortium/Third-Party Administrator (C/TPA).
Many owner-operators miss this registration requirement. Your account must be created and your pre-employment query must be pulled before you start operating, and especially before your safety audit.
What is random drug testing and how does it work?
Random drug testing means CDL drivers are picked without warning for drug tests. The selection must be truly random. Employers must test at least 50% of drivers each year for drugs and 10% for alcohol (current FMCSA testing percentages for 2026). Every driver must have an equal chance of being picked each time.
Testing must happen throughout the year, not all at once. Auditors review your selection and notification records. If you’re an owner-operator, you’re required to use a consortium for your random drug-testing. Small to medium fleets typically choose a consortium provider as well.
What is a drug testing consortium?
A consortium is a group of employers who pool their drivers together for random testing. A third-party administrator (C/TPA) runs the program. Owner-operators and small carriers join a consortium because you need enough drivers in your pool for valid random selection. Membership usually costs $100 to $150 per year, but you’re responsible for drug-testing costs ($70-$90 per test). Alternatively, TIPS Drug & Alcohol Consortium includes your enrollment, workplace policy, certificate of enrollment, and covers ALL testings costs for the year.
Your consortium handles selection, scheduling, and record-keeping. Make sure your C/TPA is registered with the FMCSA.
What is pre-employment drug testing?
Pre-employment drug testing is required before any CDL driver starts work with a new company, when they will be driving vehicles or vehicle combinations, that require a CDL to operate. The test must come back negative before the driver can operate a commercial vehicle. Employers must also check the Clearinghouse for any past drug or alcohol violations - usually pulled before a pre-employment drug screen is ordered.
There are no exceptions. Even experienced drivers must take a pre-employment test when joining a new motor carrier.
What happens if I fail a drug test?
Failing a drug test, whether it’s a pre-employment or random, means you are immediately suspended from all safety-sensitive functions, including operating a CDL-required vehicle. Any driver, including owner-operators, who fail a drug and/or alcohol test must meet with a Substance Abuse Professional (SAP) and complete the Return-to-Duty (RTD) process before they can start operating.
This process typically involves finding a SAP, completing an introductory interview, being assigned to take courses (like addiction prevention) and finally being cleared for an RTD test. Once an RTD test is taken and the result is negative, the driver can resume operation so long as they comply with the follow-up testing schedule that is ordered by their SAP.
Ongoing Compliance Requirements
What is UCR and when is it due?
UCR stands for Unified Carrier Registration. It is a yearly fee required for motor carriers, brokers, and freight forwarders in interstate commerce. Registration opens October 1st and is due by December 31st. Fees start at $46 for small fleets with 0 to 2 vehicles.
Missing UCR filings can lead to fines during roadside inspections or when passing through weigh stations. Auditors also check for it. Set a calendar reminder for October, set it on auto-pay, or have TIPS manage it for you.
When is my MCS-150 Biennial Update due?
Your MCS-150 (Biennial) update is due every two years. The first time you file, and all your updates going forward are determined by the last two digits of your DOT number. The month depends on the last digit of your USDOT number. If your number ends in 1, you file in January. If it ends in 2, you file in February, and so on. The second-to-last digit determines whether you file every even year, or every odd year. If your second-to-last digit is odd, you file every odd year, and vice versa. Missing this update can mean your DOT number is placed as inactive for failure to file, and has a fine of up to $1,000 per day.
You must also update whenever your company information changes, like your address, phone number, or number of vehicles.
What is a Driver Qualification File?
A Driver Qualification File (DQ File) holds documents that prove a driver can legally operate a commercial vehicle. It includes the job application, driving record, medical card, road test form, investigation of previous employers and more. You must keep a DQ file for every driver, including yourself if you are an owner-operator.
Files must stay current. Expired medical cards or old driving records count as violations. Set up a system to track renewal dates. Using a company like TIPS to create and manage your Driver Qualification Files is highly recommended unless you have experience creating these files from scratch.
What is IFTA and do I need it?
IFTA is the International Fuel Tax Agreement. It is a fuel tax program for trucks that travel across state lines. You need IFTA if your vehicle weighs over 26,000 pounds or has 3 or more axles. IFTA lets you file one fuel tax report instead of one for each state. You’ll need to file IFTA to obtain your IFTA license and your fuel stickers.
IFTA is registered through your home state's IFTA office. Quarterly reports are due at the end of April, July, October, and January.
What is IRP and do I need it?
IRP stands for International Registration Plan. It lets you get one license plate that works in all states where you travel. These are called your Apportioned Plates or Apportioned Registration. You register in your home state and pay fees based on how many miles you drive in each state. This is required for trucks & combinations over 26,000 pounds or that have 3 or more axles that cross state lines.
Just like normal vehicle registration, IRP is renewed regularly to maintain your account and keep your registration active.
What are Hours of Service rules for truck drivers?
Drivers hauling property can drive up to 11 hours within a 14-hour window after they complete 10 hours off duty. You cannot drive after 60 hours in 7 days or 70 hours in 8 days on-duty without a 34-hour restart. You must take a 30-minute break after 8 hours of driving. ELDs must track your time unless you fall under a short-haul exemption.
Hours of service violations show up often during roadside inspections and is one of the most common reasons the experts at TIPS see carriers fail their safety audit. Following these rules protects your CSA scores and keeps your operations running smoothly.
Do I need an ELD?
Most drivers who must keep hours of service logs need an ELD (Electronic Logging Device). Exceptions include drivers who use paper logs 8 or fewer days per month, driveaway operations, and trucks made before 2000. If you fall under the FMCSA’s short-haul exemption, you can keep Time Records instead of an ELD. Your ELD must be on the FMCSA's approved list.
Not all devices sold as ELDs meet federal rules. Check the FMCSA's registered device list before you buy. TIPS strongly recommends Motive for your ELD provider.
Insurance and Authority Maintenance
What insurance do I need for my trucking company?
For-hire carriers need at least $750,000 in liability insurance, unless your vehicle is considered non-commercial, which requires only $300,000. Hazmat carriers need at least $1,000,000. Passenger carriers require coverage from $1,500,000 to $5,000,000, depending on how many passengers they carry. You also need cargo insurance (usually $100,000) and physical damage coverage to work with certain brokers and shippers. Insurance must be filed with the FMCSA using Form BMC-91 or BMC-91X - which is handled directly by your insurance provider.
Work with insurance companies that know trucking. They understand filing requirements and coverage gaps that other insurers might miss. TIPS recommends Road Ready Insurance who specialize in insurance for motor carriers.
What happens if my insurance lapses?
If your insurance lapses, your authority can be quickly involuntarily revoked by the FMCSA. You must stop all for-hire operations right away. The FMCSA will show your status as "Not Authorized" until you file new insurance. If your authority was revoked, you’ll also need to file a reinstatement with the FMCSA. Operating without insurance can bring fines up to $16,000 and automatic audit failure.
Insurance companies must give the FMCSA 30-days’ notice before canceling, which is posted on the public licensing & insurance page. Use that time to get replacement coverage with no gap to prevent your authority from being revoked.
How do I check my DOT authority status?
Go to the FMCSA SAFER website and use their Company Snapshot tool. Enter your USDOT number and hit search. You will see the information about your DOT number that the FMCSA has on file. You can then click on ‘Licensing & Insurance’ in the top right to view any authorities you have, their current status, and information about your insurance & BOC-3 filing. Your status should say "Active" or “Authorized for XYZ”. If it says Pending, Inactive, or Not Authorized, you cannot legally operate across state lines.
Check your status regularly to catch problems early. Shippers and brokers typically check SAFER before booking loads with you.
What violations can shut down my trucking company?
You can be shut down for operating without insurance, failing your safety audit, getting an Unsatisfactory rating, using drivers who failed drug tests, operating outside your authority (i.e. you have a property authority but you’re hauling passengers), or repeated hours of service violations. Out-of-service orders stop you immediately until problems are fixed. If your DOT number is placed out of service, you must wait at least 30 days and resolve the issues before you are eligible to be placed back in service.
Prevention is much easier than fixing problems later. Regular compliance reviews catch issues before they become serious. Having a team of compliance experts, like the ones at TIPS, to keep you informed and manage your compliance can help ensure you avoid out-of-service violations.
How do I reinstate my DOT Number?
To reinstate your DOT number, you must first fix the problem(s) that caused the shutdown. This is usually a failed audit, failing to respond to safety auditors, not paying your fines, or missed MCS-150 updates. File the required documents, pay any fees, and submit a request through the FMCSA portal to be placed back in service. Timelines vary from days to months depending on the issue.
Complex cases may need professional help. The FMCSA will not reinstate your DOT number and/or authority until all problems are fully resolved. TIPS specializes in helping carriers get back in service following a failed audit or any other out-of-service violation.
Operational Decisions
Can I operate under someone else's authority?
Yes. You can lease on to another carrier instead of getting your own MC number. You operate under their authority, insurance, and DOT number. They are responsible for compliance, but may require you to obtain your own IFTA & IRP (if applicable). This lowers startup costs but means less pay per load and less freedom in how you operate.
Leasing on works well for new owner-operators who want to learn the business before taking on full compliance responsibility.
What is the difference between leasing on and having your own authority?
Leasing on means you work under another carrier's MC authority. They handle compliance and insurance while you haul their freight. Having your own authority means you get your own MC number and handle compliance yourself. You can book loads directly with shippers or through brokers & load boards and keep more money, but you have more responsibility.
Many owner-operators start by leasing on, then get their own authority after gaining experience and saving money. Alternatively, some carriers choose to apply for their own DOT number & authority and get it authorized then lease onto another carrier. This allows their MC number to accrue age so they have more brokers who are willing to work with them when they’re ready to operate under their own authority.
Should I use factoring as a new carrier?
Factoring can be extremely beneficial for new carriers by helping improve your cash-flow as a new company. Factoring is an arrangement where you assign your invoices to a company who immediately pays you the invoice amount, minus a small percentage of the total invoice. Brokers & shippers can take weeks or months to pay an invoice, which means new carriers may struggle with keeping their operations running (like paying for fuel & insurance) if they’re waiting to be paid on loads they’ve already completed.
Factoring is particularly useful for new carriers or any carrier who is concerned with consistent cash-flow to keep their trucks on the road. TIPS recommends OTR Solutions for any factoring or fuel cards. They offer true non-recourse factoring — if the broker doesn’t pay out, it’s not your problem any more.
Is it better to hire drivers, or be an owner-operator?
Deciding whether to be an owner-operator or hire drivers comes down to your experience level and whether you have the time and energy to balance handling all of the business requirements, while being behind the wheel enough to keep your revenue coming in. If you choose to be an owner-operator, keep in mind that the FMCSA treats you as both a driver and an employer. You'll still need a driver qualification file on yourself, a drug testing program, and all other employer-side compliance — even if you're the only driver.
While many of the new companies TIPS works with on a daily basis are owner-operators, it’s not uncommon for a new carrier to immediately begin searching for and hiring drivers to start hauling loads. If you decide to hire drivers, just ensure you screen them properly before you put them behind the wheel to protect your company & safety rating.
Getting Help with Compliance
What is DOT compliance?
DOT compliance means following all the rules from the Department of Transportation, FMCSA and the States you operate in. This includes having the right authority, valid insurance, driver files, drug testing, hours of service logs, state permits (like Weight & Distance permits) and maintenance records. Breaking these rules can lead to fines, failed audits, and losing your authority.
Compliance is ongoing work. Rules change, documents expire, and new requirements appear. Staying compliant takes consistent attention and thorough research — a lot to manage for one person.
How do I get help with DOT compliance?
You can hire a compliance service like Total Insight Professional Services (TIPS), use software that requires a subscription or regular costs, or handle as much of it yourself as you can. A compliance service provider will manage driver files, drug testing, audit prep, and regulatory tracking. This saves time and helps you avoid violations. When choosing a compliance provider, it’s critical that you complete thorough research, compare pricing, read reviews, and ensure that you understand what you are paying for. Not every compliance provider will provide the same quality of service that you expect.
TIPS works with new & existing carriers, owner-operators, small fleets, and anyone else that’s looking for help with managing their compliance. We have nearly 20 years of industry experience and have helped over 10,000 small businesses. We will provide a free compliance check, identify what your specific requirements are, and advise you on what you can, or even should, do yourself - we handle the rest.
How do I choose a DOT compliance company?
Look at their experience, services, pricing, reviews, and support. Find a company that works with carriers your size. Make sure they offer everything from authority setup to audit prep - you don’t want to have to use multiple companies to manage your compliance. Check for clear pricing with no hidden fees - if their prices aren’t available on their website, that’s usually a red flag. Ask about their track record helping carriers pass audits.
A good compliance partner understands your challenges and can grow with you. Choosing a provider where you get a personal compliance agent who understands your business and that you can call directly anytime you have questions is a huge benefit to new carriers.
How much does DOT compliance cost for a small trucking company?
Professional compliance management varies wildly depending on what requirements apply to your type of operation, the company you choose, and whether you’re paying for ‘consultation’ fees. To give you an idea: we recently spoke with a carrier who was quoted almost $7,000 for their initial compliance filings. TIPS completed everything they needed to operate legally for less than $2,800, and included lifetime biennial updates, which their original quote didn’t cover. You can handle most, if not all, of your compliance yourself, but it takes a lot of time and mistakes can be costly - leading to delayed start dates, lost revenue, and fines or citations.
Include compliance costs in your budget from day one. Professional help costs far less than fines, failed audits, being placed out-of-service for 30+ days or losing your authority. With TIPS, there are no hidden fees, no cost for consultation & support, and our pricing is always based on what you actually need for your specific type of operation.
What are ongoing DOT compliance costs?
Ongoing costs include your annual UCR registration, drug testing, Clearinghouse queries ($1.25 each), random testing pool (consortium) fees, driver screening (background checks, psp reports, MVRs), and insurance. Most carriers budget $3,000 to $10,000 per year for compliance depending on fleet size and types of vehicles being used.
The surprise costs come from violations. One out-of-service order or failed audit costs far more than staying compliant. Regardless of your operation, business structure, or number of vehicles, staying in compliance will always save you money over fines & citations. If you’re operating out-of-compliance, it’s only a matter of time before it catches up to you.