Have you ever watched a video where an athlete goes to a gym and pretends to be a newbie? Then the athlete shows up all the people around by showing off superior skills? Not that we’re comparing trucking brokerage to althetics. We’re just saying that there’s training behind success as a freight broker. So if you’re looking at how to get a freight brokerage authority, start with training or getting a job working for a company as a freight broker.
Why are we starting with experience first? Because being a freight broker is a tough job.
Brokering In the Middle
A freight broker manages the shipper and the trucker. That’s the ideal position for stress and pressure, so it’s smart to find out if the job is for you. But once you’ve got that experience and training, it’s time to get a freight brokerage authority from the government.
Get Your Numbers Straight
There are several steps to complete before you apply to receive your freight brokerage authority. If you’re new to the scene,
- Learn what you need to know about starting your own business, forming a corporation, and establishing yourself with the IRS as a business to get an EIN (employer identification number.) If you’re already an established trucking business, you may be able to use that EIN. If this is a new business, you may want to consult with the Small Business Administration for assistance. They have plenty of information to help you get on the road quicker and easier.
- Check into business insurance and the required bond amount. In general, the FMCSA requires a bond of $75,000, but some states or jurisdictions require a higher amount.
- The DOT requires a DOT and an MC number. The MC number is required if you are shipping goods out of state. These numbers can be applied for online. You’ll find people online who are willing to help you get those numbers, but the application process isn’t particularly difficult. However, the time frame from the application to delivery might be more than a month.
BOC-6 Process Agents Designation and UCR Registration
The BOC-3 Process Agents filing is to notify the FMCSA who your process agent is. The role is to receive any documents regarding legal issues. You need a process agent in every state. There are services that provide this role in every state.
UCR registration is a state-level procedure. You must take care of it annually. There may be other registration or state-level tasks that you must take care of before you’re ready to file for your freight brokerage authority.
Fill out the FMCSA application for your freight brokerage authority
Do you already have your trucking authority? Then you know what this process is like.
When you’ve got all these other tasks, you’re ready to file your request for your broker authority. As hard as it is to believe, this form is filed out BY HAND. You don’t file it online. You can request by phone that they mail it to you. But once you receive it, it’s up to you to fill it out and send it back via USPS. Yeah, I’m rolling my eyes too.
Because we’re working with the government, don’t expect this to be a quick process. Do as much as you can before you file your request so no delays will slow your roll. Save up for those fees now and be ready to hit the road running!
If you’re a new broker, using a good freight brokerage software is the best way to start your business. TruckingOffice Brokerage Software has a free trial to help you learn the job and keep you organized!
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