A Freight Broker's Guide to Success: How to Transfer Ownership

If you are looking to transfer ownership and notify the proper parties, this blog will outline the process and highlight the necessary documentation you’ll need to comply with FMCSA rules and regulations. 

To notify the Federal Motor Carrier Safety Administration (FMCSA) of an Operating Authority (OA) ownership change, you'll need to follow specific steps outlined by the FMCSA. Here's a detailed guide on how to do it:

1. Determine the Need for Transfer: If you are transferring (selling) your OA, you may need to request a Transfer of Operating Authority. This occurs when there's a change in ownership, management, or control of the company, but the company intends to keep its existing Docket number (MC/FF/MX).

2. Prepare Transfer Request: Before sending the request, ensure you have all necessary information ready. The request should include details of both the transferor (seller) and transferee (buyer). Necessary information requested by both parties can be seen below.

The transferor must submit a signed MCS-150 form indicating “out of business” as the reason for filing. If you plan to continue operating in intrastate commerce and/or a private motor carrier, the reason for filing should be “biennial update or change”. The first page of form MCS-150, where you must indicate the reason for filing, can be seen below.

3. Submit Transfer Request: There are a few ways to request a transfer. The best option is to submit a ticket through the FMCSA Support Portal. You must complete the required fields and upload the necessary documents. This is the fastest way to get ownership transferred. 

4. Submit Additional Documents: After the transfer request is received, FMCSA will review it and may contact you for any additional information needed. You may be instructed to submit proof of financial responsibility (insurance) and designate a process agent (BOC-3 form)

5. Review and Update Information: Once the transfer request is recorded in FMCSA systems, review the updated OA information on the FMCSA Licensing & Insurance page. The OA status will be displayed as “Inactive” until the required additional documents are submitted and approved.

6. Receive Confirmation and Certificate: Once the OA is active, you will receive a letter. You can then download a copy of your certificate/permit/license from the FMCSA website, and a physical copy will also be mailed to you.

It's essential to ensure that all required information is accurately provided and that you follow the correct procedures to avoid delays in processing your ownership change request.

If you have any further questions about transferring ownership, you can visit the FMCSA page here. If you are assuming ownership, stop by our freight page to get a free quote for your required BMC-84 surety bond or give us a call at (855) 470-3773.