Have you ever thought about being your own boss? As your own boss you can work hard and be a great success but it is all up to you. As your own boss you can set yourself up for success by planning, training and finding mentors.
A freight broker and freight broker agent are their own boss. Similar to a real estate agent, they can work as an independent or under a larger agency. I strongly recommend starting as a freight broker agent. As an agent you are your own boss with a great support system in the brokerage you work through. Most people choose to start in the freight brokering business as an agent working under the umbrella of a brokerage firm that is bonded and has brokerage authority. A freight broker agent has less upfront costs that an independent freight broker. As an agent you do not need a license or a bond.
What are the costs and additional requirements to be a broker or an agent?
TRAINING
I highly recommend training as the first requirement, your first expenditure. Professionals who take advantage of training, start their career way ahead of those who try to figure it out on their own. Brooke Transportation Training Solutions would love the opportunity to train you as a freight broker.
Complete training before you spend money on these other things because in training you will figure out your specific needs.
HOME OFFICE
Besides training, a freight broker agent will need to set up a home office with a computer with two screens, a 4 in 1 printer/scanner/fax/copier machine, a desk, chair, file cabinet and office supplies.
PHONE
A freight broker spends a lot of time on the phone. So a great phone with a headset, unlimited long distance and high speed internet is essential. I do a lot of business in my truck equipped with bluetooth handsfree phone service.
SOFTWARE
The software available to help in the workings of a freight broker is continually improving. Subscriptions to software can cost $30 to $150 per month depending on how many services you choose to utilize. Transportation Managment Software (TMS) and Loadboard software are essentials.
BROKER FEES
Some brokers (but not the majority) charge fees to the agent as a part of their internal business model for such things as marketing, advertising, training and usage of their systems.
LEGAL FEES
If you are going to be a broker you will need to choose a name for your logistics company then set up the legal structure of the company (such as a SCorp, LLC, or other) Your accountant or attorney can advise you on the best choice for your situation. Fees are set by the professional you select.
BROKERAGE AUTHORITY
File for your brokerage authority with the Federal Motor Carrier Safety (FMCS). The
Administration filing fee is $300. OP-1 form. Once you’ve obtained your registration you’ll file a biennial update form MC-150 (no cost).
PROCESS AGENT
One time fee usually $45 to $60. Submit Form BOC-3 to the FMCS
BUSINESS REGISTRATION
Register your business through the Unified Carrier Registration system. Current fee is $76 for brokers.
SURETY BOND
Brokers are required to obtain a surety bond or trust fund in the amount of $75,000. Ranges for the broker bond are generally $750 to $9000 depending on your credit situation.The bond is issued by an insurance company that offers freight broker bonds. The trust fund is generally around $1500 per year and also requires collateral with a bank.
LOCAL REQUIREMENTS
Check with your state for particular requirements to operate a business in that state.
Does being your own boss in the exciting world of transportation peak your interest??
Give me a call.
Moving forward,
Jeff Roach
214-206-1169
brooketraining.com
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