A freight broker is a company or an individual acting as a transportation intermediary, to aid the movement of cargo. Being an important link between the shipper and a motor carrier. They are always in high insistence in the trucking industry. Their services are crucial as they are beneficial to both parties and support the smooth running of a supply chain. You can cater to them by endeavoring efficient, safe, and affordable shipping services through your freight broker company. To do this, we have put together a quick guide to walk through the role and understand the technicalities of how to search for the best freight brokers near me. To get start your freight broker business you need to first gain experience within the transportation industry.
How one can start a freight brokerage company?
To start a freight broker company one need to follow these steps such as –
. Establishing a business structure
The first step for starting a freight broker business is to determine how you want your company to be structure. It is highly prudent to consult with an attorney or accountant when making this decision. As they can weigh the positives and negatives of various business structures with the licensee.
. Submitting an OP-1 Form
Once your business structure has been established. You will need to obtain a motor carrier number by endeavoring the FMCSA with a completed OP-1 Form. This is the initial application form that the applicant needs to submit to the FMCSA, which may include general business information such as company type, name, address, type of operating authority, etc. Apart from this, one needs to submit a $300 filing fee for each type of license you are applying for. If you are applying online for a motor carrier number, then you can receive it immediately. But if you opt to mail in your application then you may have to wait up to four weeks to get your motor carrier number.
. Getting a surety bond (BMC-84)
Of all the steps involved in starting a freight broker business, the surety bond requirements are oftentimes the most problematic. Many applicants are unfamiliar with surety bond before learning that they need one to start their freight broker business.
. Selecting a process agent
The FMCSA describes a process agent as a delineative upon whom the court papers may be apportioned in any proceeding brought against a motor carrier, broker, or any freight forwarder. To comply with 49 CFR 366, every licensed freight brokerage business requires to designate a process agent in each state in which it has an office and writes contracts. Once you have received your motor carrier number, you may appoint multiple process agents.
. Registering your business
The final step in starting the freight brokerage business requires all the freight brokers near me to take part in the Unified Carrier Registration. This is an agreement developed under the Unified Carrier Registration Plan governing the collection and distribution of registration and financial responsibility information endeavored and fees paid by various brokers. This may establish rules and regulations for all the hot shot freight brokers near me, including fees that one pays to the freight broker’s base state or the state where their main office is located. Apart from this, by taking part in the Unified Carrier Registration. Brokers need to get familiarized with local regulations regarding the interstate companies for every state in which they will be conducting business by contacting the various state’s transportation regulatory agencies.
Conclusion for Freight brokers near me
Setting up a freight broker company requires some basic equipment, a handful of skills, and a feasible business plan. You need to follow the process step-wise and give yourself sufficient time for planning to set up your business. You need to remember to take professional assistance. And learn from their experience to maximize profitability and flourish your freight broking business. So if you are searching for the best freight brokers near me. Then you can contact LGOA, one of the leading logistic service providers in California.