Not all operating authority is created equal. The FMCSA issues several distinct types of authority, and the one you need depends on what you plan to do: haul freight, broker loads, forward shipments, or some combination. Choosing the wrong authority type delays your launch and can require a separate application to fix. This guide explains every authority type, who needs each one, and how to decide which is right for your business.
Compliance terms in this guide
Operating Authority · Common Carrier · Contract Carrier · MC-B Authority · FF Authority · BOC-3
Common Authority (MC Number for Motor Carriers)
Common authority is what most people think of when they hear "MC number." It authorizes you to transport property (freight) for hire as a for-hire motor carrier. This means you are being paid by shippers or brokers to move their goods.
To obtain common authority, you file Form OP-1 with the FMCSA and select "Motor Carrier of Property" with "Common" authority type. The filing fee is $300. Common authority allows you to haul general commodities for any shipper, making it the most flexible carrier authority type. You must also file a BOC-3, secure liability insurance ($750,000 minimum for non-hazmat general freight), and register for UCR, IFTA, and IRP.
Contract Authority
Contract authority allows you to haul freight under specific, written contracts with individual shippers. Unlike common authority, contract carriers do not serve the general public. They work with a defined set of customers under negotiated terms.
In practice, the distinction between common and contract authority has become less significant since deregulation. Many carriers hold both. The application process, insurance requirements, and BOC-3 filing requirement are the same as common authority. If you are unsure which to choose, common authority gives you more flexibility to take loads from any source.
Broker Authority (MC-B)
Broker authority allows you to arrange for the transportation of freight by motor carriers without actually operating trucks yourself. You are the intermediary between shippers and carriers. Broker authority requires a $75,000 surety bond (BMC-84) or trust fund (BMC-85) in addition to the BOC-3 filing.
Broker authority is applied for through the same OP-1 form, selecting "Property Broker." The $300 filing fee applies. Your MC number will carry a "B" designation. For a complete guide to becoming a broker, see our freight broker license guide. For details on the bond requirement, read our BMC-84 surety bond guide.
Freight Forwarder Authority (MC-FF)
A freight forwarder assembles and consolidates smaller shipments into larger ones, then tenders them to carriers for line-haul transportation. Freight forwarders also typically handle pickup, delivery, and distribution at the destination. They are responsible to the shipper for the freight from origin to destination, even though they use carriers for the actual transportation.
Freight forwarder authority is designated as MC-FF and is applied for through the OP-1 form. Like broker authority, freight forwarders must maintain a $75,000 bond or trust fund and must file a BOC-3. The filing fee is $300.
Every MC Authority Type Requires a BOC-3
Whether you are applying for carrier, broker, or freight forwarder authority, a BOC-3 process agent designation is mandatory. File yours today and clear this requirement for any authority type.
File Your BOC-3 Now – $75Private Carrier (No MC Needed)
A private carrier transports its own goods in its own vehicles. For example, a furniture manufacturer that uses its own trucks to deliver products to retailers is a private carrier. Private carriers generally need a USDOT number if they operate vehicles over 10,001 lbs in interstate commerce, but they do notneed an MC number because they are not hauling freight "for hire."
Since private carriers do not hold MC authority, they are not required to file a BOC-3. However, if a private carrier later decides to haul freight for other companies, they would need to apply for common or contract authority, and the BOC-3 would become required at that point.
Exempt Commodities
Certain commodities are exempt from the requirement to hold MC authority. These include most unprocessed agricultural products, livestock, newspapers, and a few other categories defined in 49 USC 13506. Carriers hauling only exempt commodities still need a USDOT number but do not need an MC number.
Be careful with this exemption: the moment you haul a single non-exempt commodity, you need MC authority. Many carriers that start with exempt freight eventually diversify and need to apply for authority.
Can You Hold Multiple Authority Types?
Yes. Many transportation companies hold dual authority or even triple authority. Common combinations include:
- Carrier + Broker: You haul freight with your own trucks and also broker loads to other carriers. This is increasingly common as carriers diversify revenue streams.
- Carrier + Freight Forwarder: You both haul and consolidate shipments.
- Broker + Freight Forwarder: You arrange transportation and also consolidate freight.
Each authority type requires its own OP-1 filing and $300 fee. However, you only need one BOC-3 filing that covers all your authority types under the same USDOT number. Insurance and bond requirements are additive: if you hold both carrier and broker authority, you need both the liability insurance and the surety bond.
Changing or Adding Authority Types
If your business evolves and you need a different type of authority, you file a new OP-1 for the additional authority type. You do not need to surrender your existing authority. The new application goes through the same process: $300 fee, 10-day protest period, and fulfillment of any additional insurance or bond requirements.
Your existing BOC-3 covers the new authority as well, so you do not need to refile it unless your process agent service is no longer active.
How to Choose the Right Authority Type
Selecting the right authority type comes down to what you plan to do:
- You own trucks and want to haul freight for others: Common Authority (Motor Carrier)
- You want to match shippers with carriers without owning trucks: Broker Authority (MC-B)
- You want to consolidate shipments and manage freight: Freight Forwarder Authority (MC-FF)
- You only transport your own company's goods: USDOT number only (Private Carrier, no MC needed)
- You want to haul for others AND broker loads: Dual authority (Common + Broker)
The BOC-3 Requirement Across Authority Types
To summarize the BOC-3 requirement by authority type:
| Authority Type | MC Number? | BOC-3 Required? |
|---|---|---|
| Common Carrier | Yes | Yes |
| Contract Carrier | Yes | Yes |
| Property Broker | Yes (MC-B) | Yes |
| Freight Forwarder | Yes (MC-FF) | Yes |
| Private Carrier | No | No |
| Exempt Commodity Carrier | No | No |
Understanding authority types before you apply saves you time and money. Choose the type that matches your business model, file your BOC-3 alongside your OP-1, secure the appropriate insurance or bond, and you will be operating legally within weeks. If you are starting a trucking company for the first time, our complete trucking startup guide walks through every step from entity formation to your first load.