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The Agent process

Discussion in 'Freight Broker Forum' started by flatbeb mac, May 11, 2019.

  1. May 11, 2019 #1
    flatbeb mac

    flatbeb mac Medium Load Member

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    Aug 16, 2015
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    I have a few questions primarily targeted at people that have been agents that became brokers. This could be rhetorical or what not but it is what it is.

    1. Why does one need to have their own Articles of Incorporation? To maybe not be seen as an employee of the broker?

    2. Agents company will be invisible to all except broker? So when conducting business with clients and carriers that the agent has acquired, you are only seen as the broker, not as xyz, agent of abc, correct?

    3. At the time of starting an agent company, getting your MC# and then make it inactive so it ages while under the contract of the broker, allowing it to age. Good idea?

    4. At the time of termination of the broker/agent contract, is retaining acquired clients an issue? Separate from the non-compete, will the client see the agent as viable or will they be more inclined to want to stay with the broker? Even though a broker/client relationship will be non-existent other than if there is an issue that the agent cannot resolve. I see it as the relationship was built with the agent, not the broker.

    I have more but that should suffice for the moment.
     
    flatbeb mac, May 11, 2019
    flatbeb mac, May 11, 2019
    #1
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  3. May 12, 2019 #2
    flatbeb mac

    flatbeb mac Medium Load Member

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    Aug 16, 2015
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    Ya, maybe it would be more beneficial to just get mc# instead...
     
    flatbeb mac, May 12, 2019
    flatbeb mac, May 12, 2019
    #2
  4. May 12, 2019 #3
    wichris

    wichris Road Train Member

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    Jan 17, 2011
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    Can't get the MC# without posting a bond so working as an agent would be a moot point.
     
    wichris, May 12, 2019
    wichris, May 12, 2019
    #3
  5. May 12, 2019 #4
    flatbeb mac

    flatbeb mac Medium Load Member

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    yes I am aware, what i meant was skip being an agent and just dive in.

    thanks
     
    flatbeb mac, May 12, 2019
    flatbeb mac, May 12, 2019
    #4
  7. May 20, 2019 #5
    JJ - WI

    JJ - WI Bobtail Member

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    May 10, 2019
    WI
    0
    #1 - Having AoI may show that you have a legitimate business and defer tax liability from who you sign on. Example: My father ran taxis in AZ. He leased them out at a time. The lessee did not pay taxes. IRS went after him for back taxes. -- Tax man comes after the main money. This is a way to "prove" they did their due diligence.

    #2 - Correct. You are running under the umbrella of a different company. -- Think of this like an insurance agent for XYZ. They are an agent, yet sell under the brand. Real estate agent and so on. You are using their insurance, marketing and capital for your benefit.

    #3 - Not sure on this anymore. Personal opinion is branding and having your name out there. You may offer other features such as 24 hour free pay or COD to get rolling. Nowadays there is more you can check on easily besides a start date.

    #4 - Whatever can happen, will happen. You are entering in all of your information into someones database. Usually the bigger companies have a 6 month hold on an inactive account. If you leave, 6 months later someone can jump on the account. You put all of the information into the database for them.

    Bottom line. Its hard to move around and hold your customers unless you are really close to them. Friend and family etc. If you leave your current business (under someone else), they may choose to stay. I think that is what you are asking?
     
    JJ - WI, May 20, 2019
    JJ - WI, May 20, 2019
    #5
    flatbeb mac Thanks this.
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