MC authority transfer: what happens after you buy
When you buy a trucking company the right way, the USDOT number and MC authority stay with the company. The authority doesn’t move anywhere. What changes is who owns and runs the company, and FMCSA’s records have to reflect that promptly. Here’s the checklist.
Why the paperwork matters
FMCSA’s March 2026 bulletin made it clear: an ownership change is acceptable when it’s a legitimate corporate transaction and the records are updated to show the new owners. Numbers used by someone other than the registered legal entity, or transferred improperly, can be deactivated. Keeping a clean paper trail protects your investment.
After closing: the checklist
- Update state records: file the change of members, managers or officers with the state where the LLC or corporation is registered.
- Update FMCSA: file an updated MCS-150 with the new company officials, address, phone and email. Expect identity verification as FMCSA moves to its Motus registration system.
- Insurance: put your own policy in place and have your insurer file proof of coverage with FMCSA before the old policy ends, so there’s no lapse.
- BOC-3: confirm the process agent filing is current, or file a new one.
- UCR: make sure the company’s Unified Carrier Registration is paid for the current year.
- IRS and banking: update the responsible party with the IRS and open or update the company’s bank accounts.
- Brokers and factoring: send updated W-9, certificate of insurance and contact details to brokers, load boards and your factoring company.
- Drug and alcohol consortium and ELD accounts: move them into your name.
Common mistakes
- Leaving the seller listed as the company official at FMCSA.
- A gap between the seller’s insurance cancelling and yours being filed.
- Running loads under the company before the ownership change is documented.
- Forming a new LLC and trying to move the authority into it. A new entity generally needs its own USDOT number and authority.
How we help
On every MCDOT Sales deal, we walk you through each filing after closing and confirm the records are updated. Read how to buy an MC authority the legal way for the steps before closing.
Frequently asked questions
Can an MC authority be transferred to a new owner?
The authority stays with the company that holds it. When you buy that company (LLC membership interest or corporate stock), you become its owner, and FMCSA records are updated to show the new officers.
Do I need a new USDOT number after buying a trucking company?
Not if you bought the same legal entity and it keeps operating. If you form a new entity or buy from a sole proprietor, you generally need your own USDOT number and authority.
How long do FMCSA updates take?
Filing the updated MCS-150 is quick. Insurance filings usually post within a few days. Plan your insurance start date so there’s no gap.
Next step
Questions about a transfer? Talk to us before you buy.
This guide is general information, not legal or tax advice. Have your own attorney review any purchase agreement.