Startup Broker

[DarkWhoppy]

I'm having some trouble understanding some of the lingo on the FMCSA's website. I'm going to be booking loads through GetLoad/TruckStop/DirectFreight for my dad's small trucking business of 4 trucks, but don't understand what I will be considered.

Will I need my OP-1 Authority form filed and the OP-1(FF) Authority form and have to pay both authority fees? I won't be doing anything other than finding freight through online load boards. Also, how do I go about getting the $10,000 insurance that is required?

Any advice will be appreciated! Thanks!

[chris1]

If you're booking loads for you fathers company you won't need anything.(if you're an employee/agent for that company. If you just try to re-post the load you're double brokering.

[SickRick]

Originally Posted by chris1

If you're booking loads for you fathers company you won't need anything.(if you're an employee/agent for that company. If you just try to re-post the load you're double brokering.

Agree - broker applies to SELLING loads. If you had freight coming to a warehouse/terminal from shippers or other carriers - you would then be a FREIGHT FORWARDER. If you are EMPLOYED BY YOUR FATHER to find loads for YOUR TRUCKS, then you're a CARRIER and are operating under HIS AUTHORITY...

Rick

[DarkWhoppy]

Our company doesn't have it's own authority yet. Currently, we pull freight for a company on the East coast near a major port. Thanks for the replies! They have cleared up a lot of confusion.

According to FMCSA, to file for our Authority we will need to process the forms MCS-150, OP-1(Motor Property Carrier), BOC-3, Designate a Process Agent. (we already have insurance)

Our company has been in operation for years but this is our first step towards having our own authority for load booking.

There are companies listed on FMCSA that will handle the filing process for you, including the Process Agent services. Is it best to pay a lump sum to one of those companies to ensure everything is done properly? It doesn't seem that difficult but the Process Agent section is where we would need to find one of those companies regardless.

One of the Motor Carrier Authority packages includes the FMCSA registration fee and all other fees for $525. That's only $225 more than if I filed each form myself. We travel through multiple states and all of our company's employees are within the same state. I don't see how I would be able to list an agent for every state we run in.

Thanks again!

[Bigmon]

Process Agent is free if you join OOIDA. Otherwise, it cost about $50 per year. You don't really need to pay these other places to file for you. The FMCSA online forms have a built in check/error list so if you make a mistake it will tell you.

[DarkWhoppy]

Thanks!

I found all the information I need on the OOIDA website.

[Rev.Vassago]

Originally Posted by chris1

If you're booking loads for you fathers company you won't need anything.(if you're an employee/agent for that company. If you just try to re-post the load you're double brokering.

Or you can just illegally rebroker loads without being licensed to do so like someone I used to work for. That works too, until someone catches you.

[chris1]

Originally Posted by Rev.Vassago

Or you can just illegally rebroker loads without being licensed to do so like someone I used to work for. That works too, until someone catches you.

Why would a carrier take a load from someone who has no broker authority?

[Rev.Vassago]

I'm assuming the carrier who rebrokered it passed it off as their own freight. I honestly don't know. All I know is they were selling loads rather than loading their own trucks, and were bragging they had no authority to do so.

[chris1]

Quite a few carriers do that. DOT for the most part ignores it. It must have given you a warm and secure feeling to know they were doing that.

[DarkWhoppy]

Joining OOIDA seems to be a good decision. Although, from what I see on their website they are geared towards owner-operators. My dad is moving from being an OO, to a small business owner. We've become an INC even though we're still small.

Is there any difference when signing up as an INC instead of an individual?

[SickRick]

Originally Posted by DarkWhoppy

Joining OOIDA seems to be a good decision. Although, from what I see on their website they are geared towards owner-operators. My dad is moving from being an OO, to a small business owner. We've become an INC even though we're still small.

Is there any difference when signing up as an INC instead of an individual?

You're BETTER OFF forming a Sub-S Corp. At least you get a "little" shielding from personal liability. Though nowadays, at least CREDIT-WISE - personal guarantees are required unless you have a really good D&B rating, which is acquired though years of successful, financially responsible operation.

Even as a "leased on" owner of equipment, your dad has ALWAYS been a "small business owner". Obtaining his own authority simply makes him a CARRIER, rather than a lease-on operator.

OOIDA membership is a good thing, and the "process agent" benefit pays for the membership fee on it's own (at least the first year).

Keep reading, keep learning, keep on trucking...

Rick

[Bigmon]

Originally Posted by DarkWhoppy

Joining OOIDA seems to be a good decision. Although, from what I see on their website they are geared towards owner-operators. My dad is moving from being an OO, to a small business owner. We've become an INC even though we're still small.

Is there any difference when signing up as an INC instead of an individual?

If you're talking about OOIDA, it doesn't matter what you are.