Steps To Starting Your Business
Step 1
You can either choose to be a Freight Broker or a Broker-Agent. You're able to can gain more experience and work-from-home as an agent of an established freight brokerage. This you give you more time to decide on which do you want to become. If you choose to become a freight broker you must research the laws and regulations of becoming one.
Step 2
a: Get a business license in your county once you are ready to start your business. You can usually apply for a business license through your local county clerk's office or your city's department of licensing.
Step 3
a: Go through your Secretary of State Office to the Corporation Division and incorporate your business by apply for a LLC or S Corp. or C Corp.
*** NOTE: AT THE SAME TIME - RESERVE DOMAIN NAME AND LLC NAME
b). Go register your "Domain Name" so that no one else on the internet can have your company name on the website. Do this at the same time you do your corporation filing. Use services such as: http://www.hostgator.com. Click on DOMAIN NAME and do a company name search to make sure no one else has your company name on the internet. Reserve your online name = $12.95 a year. By doing this no one else on the internet can use your company for their website - only you.
Step 4
Apply for an E.I.N. Number through I.R.S. (Apply for an Employer Identification Number (EIN) Online | Internal Revenue Service (irs.gov)
Step 5 (Option If Wish To Be A Full Broker - Only)
a: Apply for a Freight Broker license from the Federal Motor Carrier Safety Administration. You will need to complete a Freight Broker Authority application and pay a fee of $300. So if any legal action is brought against your company.
b: Obtain a Bond or Bank Trust in the amount of $75,000. If you file for a Bond, how much it will cost you is determine by your personal credit score and is paid once a year.
c: Choose a Process Agent. These agents will receive documents in the event of l
d. Register the U.C.R.
e. File for a Broker Pin#.
*** We offering filing all stated above to become a Freight Broker which include all above for $880.00
it is up to you to learn the laws and regulations of becoming a freight broker. We are not attorneys.
Step 6
If deciding to further into being a Freight Broker you will need to try different Load Boards and software/TMS as you grow. Also, as a Freight Broker you will need some form a freight brokerage software as well as programs for handling your accounting and customer information. If going to become an Agent for a brokerage firm they will supply what you need to work for them.
You may think about doing a business plan detailing how you will start and run your business on a daily basis. Include your plans for eventually expanding your business as well. Adding details about how you will fund your business may also prove helpful in the event you decide to seek a business loan.
Step 7
Focus on locating shippers by looking in trade directories, join associations, check with locate Chamber of Commerce, packing company, warehouses, shippers, growers, docks, manufacturers, distributors, grocery store, labels on everything, and magazines. Check on geographical area, types of cargo or type of shipping and this will help you position yourself as an expert within your market and may make marketing your services easier. Also talk to truckers then know where the shippers are.
Step 6
Identify carriers by looking in trade directories, magazines, truck stops and carrier directories. Seek word-of-mouth referrals as well. Choose carriers that can provide the type of service customers in your niche will need. Build your database of carriers as we stated in class.
Step 7
Set up a office for your business, you will need general office equipment and supplies, including a computer, printer, telephones, paper, pens and pencils and a fax machine.
Step 8
Market your business. Join Business LinkedIn and other social medias and trucking sites online. Use direct mail to send advertisements to potential clients in your niche. Place ads in industry magazines and directories. Try to get as much free referral and ads as possible.
We are always adding more tools and information to our website. As I've stated during class we have shared the basics of brokering freight whether you want to become an agent at first, or going on to personally become a freight broker. If you decide to become a freight broker, make sure you do your research on all the laws and regulations required by the F.M.C.S.A. There is a link in the student password area on our site where go can read this information, for we do not give legal advice in any shape or form. Go to the Federal Motor Carrier Safety Administration Link: www.dot.gov