FMCSA Warning Never to Buy or Sell USDOT or MC Numbers

FMCSA Warns Carriers Not to Sell or Lease USDOT and MC Numbers

The Federal Motor Carrier Safety Administration (FMCSA) has issued a bulletin warning motor carriers not to sell, purchase, or lease USDOT Numbers or operating authority known as MC numbers (Motor Carrier numbers).

The agency said these actions are not allowed unless they occur as part of a legitimate corporate business transaction.

FMCSA stated that it may take enforcement action if it discovers that USDOT Numbers or MC numbers have been transferred improperly. The agency said it will begin proceedings to inactivate the USDOT Number and revoke related registrations if the rules are not followed.

These registrations include safety registration and operating authority required under federal law.

Why USDOT Numbers and MC Numbers Cannot Be Sold

FMCSA explains that a USDOT Number works much like a driver’s license number. It identifies the legal person or company responsible for a transportation business.

Each number is tied to one legal entity. That entity may be a motor carrier, broker, freight forwarder, or another transportation company.

The number belongs to that legal person forever. Because of this, a USDOT Number cannot be sold, rented, transferred, or leased to someone else.

MC numbers also fall under strict federal rules. These numbers represent operating authority that allows certain for-hire transportation operations in interstate commerce.

If FMCSA finds that a USDOT Number or MC numbers are being used by someone other than the assigned legal person, the agency may take action. This may include inactivating the USDOT Number and revoking associated registrations.

Federal law requires motor carriers to maintain valid safety registration under 49 U.S.C. 31134.

Rules for Sole Proprietors Using USDOT and MC Numbers

The rules are very strict for trucking companies that operate as sole proprietors.

A sole proprietor is an individual who owns and runs a business under their own name or under a “doing business as” name. For example, a company may operate as John Doe doing business as Doe Trucking.

In that situation, the USDOT Number belongs only to John Doe. No one else can legally use that number.

If John Doe sells his trucking business, the buyer cannot take over the USDOT Number. The buyer must apply for a new USDOT Number because the original number remains tied to the original owner.

The same situation may apply to MC numbers tied to that business. FMCSA may require the purchaser to obtain new operating authority depending on the details of the transaction.

FMCSA said that if someone attempts to buy, rent, or lease a sole proprietor’s USDOT Number or MC numbers, the agency can inactivate the number and revoke the safety registration tied to it.

Corporate Ownership Changes

The rules can be different when the trucking company operates as a corporation or another legal business entity.

For example, a trucking company may operate as John Doe, Inc. In this case, the corporation itself is treated as the legal person.

That means the USDOT Number belongs to the corporation rather than to the individual owner.

If the corporation is sold, the USDOT Number may stay with the company as long as the corporation continues to exist.

FMCSA says the new owners should update the agency’s records as soon as possible. Ownership changes and other company details must be reported so the company record remains accurate.

However, if the corporation is dissolved under state law, the situation changes. If operations continue under another company or a newly formed business entity, the new company must obtain its own USDOT Number.

In those cases, the original company’s USDOT Number should be deactivated. This is done by filing Form MCS-150 and marking the company as “out-of-business.”

Why MC Numbers Are No Longer Commonly Transferred

MC numbers are required for certain for-hire transportation operations in interstate commerce.

In the past, these operating authorities were often transferred. Under the former Interstate Commerce Commission system, carriers were limited to certain routes or types of freight.

Because operating authority was limited, transfers sometimes had value.

Congress later removed many of those restrictions after the Interstate Commerce Commission was phased out. Motor carriers that hold operating authority can now operate along routes across the country.

Because of this change, transfers of MC numbers now provide little benefit and are much less common.

However, FMCSA said there are still limited situations where it may record a transfer as part of a legitimate corporate transaction.

Rules for MC Numbers in Sole Proprietor Business Sales

When a sole proprietor sells a trucking business, the situation may vary depending on the details of the transaction.

FMCSA may require the buyer to apply for separate operating authority. In some cases, the agency may record a transfer of MC numbers.

However, the original owner must still file an out-of-business notice with FMCSA.

If required filings are not submitted to update the company record, FMCSA may begin proceedings to revoke the operating authority associated with those MC numbers.

Corporate Transactions Involving MC Numbers

Corporate transactions can also affect MC numbers and operating authority.

FMCSA said it may record a transfer of MC numbers if motor carrier operations will continue with the same safety management oversight and controls after the transaction.

In many situations, companies may only need to report changes to ownership or corporate officers.

In other cases, a merger or acquisition may result in a new company being formed. When this happens, the new company may need to apply for new operating authority or record a transfer with FMCSA.

If companies fail to apply for new authority or properly record a transfer, FMCSA may begin proceedings to revoke the operating authority.

Possible Consequences for Improper Transfer of MC Numbers

FMCSA warned that selling, buying, or leasing USDOT Numbers or MC numbers outside a legitimate corporate transaction can lead to serious consequences.

If the agency discovers such activity, it may begin proceedings to inactivate the USDOT Number.

FMCSA may also revoke all registrations tied to the company. This includes safety registration and operating authority required under federal statutes.

These requirements are outlined under 49 U.S.C. 31134 and 49 U.S.C. 13901 through 13905.

What This Means for Truck Drivers and Carriers

For truck drivers and motor carriers, the bulletin serves as a reminder that USDOT Numbers and MC numbers are closely tied to the legal entity that operates the transportation business.

These identifiers cannot be bought, sold, rented, or leased through private arrangements or online listings.

Carriers that attempt to obtain USDOT Numbers or MC numbers through unofficial channels risk losing their registrations.

If FMCSA inactivates a USDOT Number or revokes operating authority tied to MC numbers, the company may no longer be able to operate legally.

The agency emphasized that business ownership changes must be handled through proper filings and legitimate corporate transactions with FMCSA.