Yes, You Can Sell Your MC Number – Here‘s What Trucking Experts Say

If you currently hold a USDOT Motor Carrier operating authority (MC number) for your trucking company, you may be wondering – can I sell my MC number if I want to get out of the business?

The answer is yes! MC numbers can be sold and transferred to new owners through a process approved by the Federal Motor Carrier Safety Administration (FMCSA).

In this comprehensive guide, we‘ll cover everything trucking professionals say you need to know about buying, selling, and transferring MC authorities:

How to Transfer an MC Number to a New Owner

While your USDOT number is tied specifically to your company for life, your MC operating authority can be transferred to another entity like an individual or business. Here is the process, according to the FMCSA‘s formal transfer guidelines:

• The current MC holder submits a written request to FMCSA for the transfer

• The proposed new holder submits the appropriate application form

• Both parties provide documentation on the sale terms and agreement

• A $300 fee is paid to FMCSA to cover processing

• The transfer is advertised for a period of time per regulations

• FMCSA reviews and ultimately approves the official transfer

• The rights, responsibilities, and commodity authorities shift to the new holder

It‘s important to involve professionals to ensure you follow the rules and steps properly. But the key takeaway is that MC authorities can change hands just like any business asset.

What Impacts the Value of Your MC Number?

If you want to sell your MC authority, factors like the following can influence the price a buyer may be willing to pay, according to FreightWaves:

• Age and history – Authorities over 1 year old are more valuable

• Safety rating – Satisfactory or better scores are preferred

• Customer contracts – Includes add value if transferable

• Commodities – HazMat, high-value loads warrant higher prices

• Insurance compliance – No lapses on filings

• Areas covered – More states covered can boost value

Industry professionals emphasize checking the Licensing and Insurance database for full authority details. Established authorities in good standing almost always sell for more.

What‘s the Value of MC Authorities in Current Sale Prices?

Sale prices for MC numbers can vary quite a bit based on factors like those above. But here are some averages based on industry reports and expert insights:

• Inactive, suspended or lapsed authorities: $500 – $5,000

• Very new authorities (< 1 year): $5,000 – $15,000

• 1-5 years old with contracts: $20,000 – $75,000

• 5+ years old with good compliance: $75,000 – $250,000

• Major carriers or specialized authorities can sell for even higher.

As a rough benchmark, expect to pay $1,000-2,000 per truck for an authority‘s value, according to #1 trucking broker Total Quality Logistics. But every sale is different, so check credentials closely before negotiating price.

Selling or Transferring Your DOT Number: Big No-No

Here is one of the biggest mistakes we see people make when selling or transferring trucking authorities:

Trying to sell, transfer, or assign their USDOT number along with the MC number.

USDOT numbers legally CANNOT be sold or transferred. As the FMCSA notes clearly:

"USDOT Numbers are not transferable, and are assigned to only one entity and remain with that entity for as long as they remain in business."

The buyer will obtain their own new USDOT number credential for their company. Make sure sale documents cover ONLY the transfer of the MC authority itself.

Expert Tips for Buying or Selling an MC Number

If you plan to sell your MC number, or want to buy from another carrier, trucking professionals recommend:

• Vet authority history – Use FMCSA tools like SAFER to check compliance

• Review contracts – See if any can convey; may add thousands to value

• Consider lease first – Leasing an authority can serve as a "test drive"

• Compare commodities – Make sure authority suits your cargo needs

• Look for liens – Unpaid taxes or loans can hinder transfer

• Appraise like a business – Use valuation methods for the carrier company itself

• Hire attorneys – Ensure professional vetting and proper documentation

• Advertise transfer – Follow regs for announcing in industry outlets

• Move quickly – Initiate official FMCSA transfer application ASAP

Following these tips helps avoid compliance issues or disputes down the road.

Alternatives to Buying an MC Number Outright

If you want to avoid buying and transferring an entire authority, there are couple flexible options to consider as well:

• Lease onto an existing authority – Become an agent operating under another carrier‘s MC

• Buy a shelf authority – Get dormant pre-approved authority to activate

• Apply for your own new authority – Work directly with FMCSA to obtain

Leasing or using a shelf authority enables you to get started quicker without acquiring an entire business. But getting your own authority ensures no baggage from the past.

The Key Takeaway – Yes MC Numbers Can Change Hands!

At the end of the day, the key point that FMCSA officials, industry experts and transportation attorneys alike want trucking entrepreneurs to remember is:

Motor Carrier authorities can indeed be bought and sold – just like any other business asset.

There is an official transfer process to follow, key value factors to consider, and professionals who can help guide you through it. But with the right diligence and documentation, you can sell your MC number or acquire one from retiring carriers fairly smoothly.

You simply need to avoid any misconceptions about selling USDOT numbers, and approach it strategically as a major business decision with compliance in mind.

So if you‘ve been wondering "can I sell my MC authority one day?" – the answer is a clear yes! With the tips in this guide, you‘ll be well equipped to navigate the process.