Every so often I like to clarify what the requirements are in becoming a freight broker. There are some misconceptions out there and they may be preventing YOU from joining the ranks of becoming a freight broker. So let's take a look:
First, if you are a trucking firm and want to get loads strictly for your company trucks, you do not need your broker authority to do so. You just go directly to the shipper to get loads for your trucks. This is not always easy to do, but at least, in theory, you can do it.
Second, if you are a trucking firm and want to get loads for your trucks AND then broker other loads to other trucking firms, then, yes, you need your broker authority.
If you fall into the second category, you want to strongly consider setting up a separate company for your freight broker business. There are just too many potential problems if you insist on running your freight broker company inside your trucking company.
It's not all that difficult to set up a separate company. If the name of your trucking company is, for example, Glory Road Transport you could name your brokerage Glory Road Logistics. And it sometimes costs as little as $50-$100 to get incorporated without using an attorney.
Now, if you have partners involved, you best use an attorney and get a good partnership agreement in place as well.
So, these are the first items to consider if you are in trucking. In the next Part II we will discuss what you need next whether you are a trucking firm opening your own brokerage or whether you are just starting a new brokerage with no other connections.