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
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.
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