Owners often say they want to "sell their MC number." In practice, what changes hands is the company that holds the number.
The number belongs to the company
A USDOT number is issued to a specific business entity. It cannot be moved to a different company. The MC number (operating authority) is tied to that same entity and its history: its grant date, insurance filings and safety record.
So when a buyer wants an aged authority, they buy the company itself. Ownership changes, but the company, and its numbers and history, stay the same.
How the sale is done
- LLC: the buyer purchases your membership interest (your ownership of the LLC).
- Corporation: the buyer purchases your shares.
After closing, the buyer updates FMCSA, state and IRS records to show the new owners and officers. The MC and USDOT numbers do not change.
Why sole proprietors can't sell
If your USDOT number is registered to you personally as a sole proprietor, there is no separate company to sell. The authority is tied to you as an individual. A buyer would have to apply for new authority under their own company, which defeats the purpose of buying an aged one.
If you are a sole proprietor and planning ahead, talk to an attorney or accountant about forming an LLC and getting authority in the company's name. Note that a new company's authority starts its age from its own grant date.
What this means for you
- Your company's past comes with it, good and bad. That's why buyers review liens, claims, taxes and insurance history before closing.
- A clean purchase agreement should split responsibility by date: you keep liabilities from before closing, the buyer takes responsibility after.
- Trucks, cash and receivables usually stay with you unless the agreement says otherwise.
Read next: How to sell your trucking company.
This guide is general information, not legal, tax or financial advice. Rules and forms change; check FMCSA and talk to a professional about your situation.