The hauling of everyday materials is essential to our everyday lives. The food you eat, the car that you drive, and the clothes that you wear are made available to you by some means of transporting. Truck brokering is a lucrative business if managed properly and even in hard times the sky is the limit to your earnings. Follow the Federal Motor Carrier Safety Administration rules and regulations and you can build a successful business from the ground up.
Things You'll Need
- EIN number (Federal tax identification number)
- Motor carrier number
- DBA (Doing Business As) name
- Broker Authority
- BOC-3 (Processing agent)
- Bonding or trust
- Business bank account
- Advertising budget
- Dedicated high-speed Internet
- Fax machine with dedicated fax line
- Dedicated phone line with 800 number
- Trucking broker software (If applicable)
Acquire your EIN as soon as possible: You can get it through the IRS by calling (800) 829- 4933 or accessing their website. It takes about two weeks for the EIN number to process to their database and you need it if you want a business bank account.
Arrange for your Motor Carrier number to be processed as soon as your EIN number is validated. This application is on the Federal Motor Carrier Safety Administration website. It is important because it gives the broker the authority to transport goods in the United States.
Organize a list of names that you want to use for a DBA name. This name will be used in doing business with other companies and must seem professional and pertinent to what you do as a business. Application for the DBA name can be found at the Clerk of Courts in your county. While applying for your DBA name you also can file for your Broker Authority and your BOC-3 processing form. The Authority gives a Broker the right to do business as a Broker and costs $300. Your BOC-3 fee is $30.00. Both are tax deductible
Approach your bond in such a way as to the protection it can give your company. The Surety Bond protects your business in such a way as if you cannot pay a trucker for any reason they can claim against your bond. They bonding company will pay the debt for you. The Surety Bond payment is based on your credit score and may range from a $300 monthly payment all the way to a $10,000 lump sum payment.
Research the different bank accounts that may be available to your company. Some companies are comfortable staying with smaller banks while others want to switch to more established banks that may offer better rates and benefits. Most banks have business accounts that you will need as a professional company to separate your private assets from your business assets. Check with banks in your area before choosing.