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Do
you want to be an Independent Freight Broker? Here
is what you need to do |
| 1) |
Freight
Broker Authority
Broker authority is a license provided by the FMCSA authorizing
individuals or companies to act as freight brokers. Broker
authority is applied for by filling out MFCSA form OP-1
and selecting the "broker of property" option.
Form OP-1 requires individual or company contact information,
the company name filed on a doing business as form (if applicable),
and the applicant's USDOT number. A $300 fee must accompany
the application. Go to - www.fmcsa.dot.gov
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| 2) |
Surety
Bond Or Trust Fund
A surety bond or trust fund acts as insurance to guarantee
that the shipping companies will be paid for their cargo
space. If the shipper does not pay for the shipping service,
the freight brokerage must absorb the cost; should they
not be able to, the bond company or trust fund will cover
the expense. A freight broker must have a surety bond or
trust fund worth $10,000 or more. Proof of the surety bond
or trust fund is filed with the FMCSA using form BMC-84
or BMC-85. Many surety bond companies could be set up with
monthly payments to lower the initial cost. Go to - www.freightbonds.com/
for more information. |
3) |
Legal
Process Agent
Freight brokerage businesses must register legal process
agents for each state they operate in with the FMCSA. The
process agent provides legal representation within their
state, though law firms which have members in multiple states
may be retained for use in each of these states. Process
agents are registered with the FMCSA using form BOC-3, with
spaces provided on the form for every state. A filing fee
of $50 is required with form BOC-3. |
| 4) |
Get
Freight Management Dispatch Software
This will be the tool that helps you manage and grow your
business. These products should be available from anywhere,
create documents like BOLs and Rate confirmations and provide
an easy invoicing and accounting system to manage carrier
and customer payments. Go to - www.trulos.com |
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