QuestionHi Bob,
I am a RN in NC and my husband is a dump truck driver ( 4months experience). We are thinking about starting our own dump truck/broker business but we are clueless on where to start and what to do. I have contacted some broker training schools. What broker training courses are needed (if any) to obtain a license? Can I read a book and get just as much information regarding broker training and obtain a license? Also, in the broker training course will they teach you how and where to get the loads and adequate pricing vs. just the paperwork aspect? I just want to gather enough information to ensure that my husband can keep steady work once we obtain a truck. What do you think about DBE certified compainies? Can you please refer me to a one stop shot company where I can receive reliable help. Thanks in advanced!
Mrs. Harrison
AnswerHi Joy.
What you will be doing is starting two businesses. A trucking business and a Freight Broker business. You have your work cut out for you, but it can be done.
Let me try to answer some of your questions. What are the requirements? Well, you must apply for your authority from the Federal Motor Carrier Safety Administration (FMCSA) allowing you to act as a freight broker, post a $10,000 Surety Bond and file your BOC-3.
How much does it cost to apply for your authority? The FMCSA charges $300.00 to apply for operating authority (motor property carrier, motor passenger carrier, freight forwarder, broker). It requires that you fill out a 4 page form. You can do it online or by mail. When filing for motor carrier authority, there is no additional fee for a USDOT #. Notice of name change is $14.00.
How much is a Surety Bond? You must post a bond of at least $10,000. The amount you pay for your bond depends on a number of factors including the type of bond you choose and the programs provided by the financial institution you choose to use.
What is a BOC-3? A BOC-3 is a processing agent. This is a representative upon whom court papers may be served in any proceeding brought against a motor carrier, broker, or freight forwarder.
Is Freight Broker Training School required? Freight Broker Training School is not required to receive your property broker authority. However, the failure rate for those who attempt this business without freight broker training is high. In order for a broker to be successful in any industry (stock broker, real estate broker, etc.), formal training is highly recommended.
Some of the things you'll need for your companie(s) are...
1. High speed Internet access
2. State of the art computer
3. A fax/copy machine
4. A telephone with at least two lines (one dedicated to the fax, one dedicated for voice.)
5. A high quality broker software program
Now if you just want to keep your husband running, you don't need to be a broker. Like I said, you'll be running two companies. You need to find a couple of good brokers to keep him running. I would look into a Broker school if you want to seriously suceed.
DBE certified companies are great at tax time! Get DBE certified, by all means!
There are many companies who can help you with Broker training or just getting you set up. Take a look at these...
www.atexfreightbrokertraining.com
www.gatlineducation.com
www.shipperscarriers.com
If you just want to get your license and don't want the training, go to www.dotauthority.com and they can get you set up.
Good luck!
Bob Stephens
