Broker License question or Authority.

Discussion in 'Freight Broker Forum' started by kachup, Oct 24, 2013.

  1. kachup

    kachup Medium Load Member

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    Hey yall thanks for your time reading this post, Im a small business owner out of S.Florida which my father started, Beside having the trucking company we also have another business. I took over my father company and everything is sailing great. Im running 3 step decks and i just purchased another 51 ft reitnouer. I got a few customer i work directly which is great, therefore i don't have enough trucks to book all the loads they want to give me. I also have a customer that i deal with in Laredo, Tx that are direct that also want to give me more than i could handle right now. As we know how the economy is, i don't want to get into debt. I been around doing this since 04 just being a dispatcher and setting up rates and keeping the customer happy. My costumer wants me to get all their loads and finding truck for them when i don't have any of mines available. I told them politely i cant at this time because i don't have the authority to post up loads on load board without a broker license. What would i need in this situation? Do i need a Broker license with different authority with bond. If so how do i get a bond and license. Having experience in this field is worth going to a broker school.

    i will appreciate your experience and knowledge and i need suggestion.

    sorry for my first post being too broad.
     
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  3. G/MAN

    G/MAN Road Train Member

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    At one time carriers could broker out a percentage of their loads to other carriers or owner operators without having broker authority. I know some carriers have gotten broker authority to avoid some problems. I don't know if the laws have changed or not. It has always been a gray area. It would be better for you to go ahead and get your broker authority. Broker authority now requires a $75,000 bond. Most carriers and owner operators won't do business with a company without having active broker authority. You will need to go to the fmcsa website to file an application for broker authority. You can check with your current insurance company to see if they can provide a bond. You may also be able to go through your bank. Most require that you pledge assets equal to the amount of the bond. Annual bond fees usually run about 10% of the amount of the bond. Broker authority costs $300, unless that has also changed.
     
    chimbotano Thanks this.
  4. kachup

    kachup Medium Load Member

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    thank you so much for your respond, will jump on it later today. I wish it was like back in the days.
     
  5. LSAgentOZR

    LSAgentOZR Road Train Member

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    Team up with a dependable, reputable broker and get a sales commission for them moving stuff for your customers on your behalf. Get it in a contract so it's legally binding and enforceable.
     
  6. xxxbigwheelsxxx

    xxxbigwheelsxxx Bobtail Member

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  7. xxxbigwheelsxxx

    xxxbigwheelsxxx Bobtail Member

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    Or, Contact some smaller Carriers that you may know. Especially if some of the freight is in Florida. But that depends certain carriers are always looking for freight out of Florida and your could possibly get it moved cheap.
     
  8. LSAgentOZR

    LSAgentOZR Road Train Member

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    Nah... if you ask around here, some might say I'm not reputable... like yourself perhaps.:biggrin_25523:

    Seriously. Save yourself the headaches of having to do all the paperwork and hold a bond, not to mention making tons of phone calls. It could be a mutually beneficial relationship with whomever you choose. No, I don't mean myself.
     
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