FMCSA warns against unauthorized USDOT number sales 

What’s a USDOT Number?

USDOT Numbers identify the motor carrier, freight forwarder, broker, or entity, just like a driver’s license identifies the driver. A USDOT Number will always belong to the same legal person and cannot be leased, sold, transferred, or rented to anyone else. If the FMCSA discovers that someone other than the assigned legal person is using a USDOT Number, the Number will be inactivated.

For sole proprietors, this means the owner will always have one USDOT Number and can never sell or transfer it, even if the owner sells their company. The new buyer would need their own USDOT Number.

For a corporation, the USDOT Number is attached to the company and can never be sold or transferred, so whoever buys the corporation will inherit the same USDOT Number under new ownership. If two companies merge or one gets dissolved, it’s likely that a new USDOT Number would be required.

What’s Operating Authority?

Operating Authority, also known as the MC Number, is needed for carriers to perform certain types of transportation along specific routes, which previously led to frequent transfers of the MC Number. Congress recently changed Operating Authority so that a carrier with Operating Authority may operate along any route across the U.S., removing the frequent need for MC Number transfers. 

A sole proprietor who sells their business would be required to get a separate MC Number, or record a transfer, and must file an out-of-business notification. If a sole proprietor fails to do this, the FMCSA will revoke the operating authority (MC Number).

For corporate transactions, the motor carrier may need to report ownership or corporate officer changes without a transfer if the same management and controls stay in place. If a new business entity is formed, however, the FMCSA may record the transfer or a new MC Number may be required.

Bottom line

Ultimately, failing to follow the rules and lease, purchase, or sell a USDOT or MC Number outside of a legitimate and valid corporate transaction will lead to inactivation of the Number and all related registrations. Make sure all your transactions are lawful and authorized to avoid consequences.