Hello Guys
I'm been a Tech Savie Technician for 10+ years. I fluent with PC, Sofware, Communication skills. troubleshooting.
I also good at selling stuff on ebay, craig list. etc.
My Brother has Been a Owner Operator for about 1 year, here in the Los Angeles, CA area. Doing Short Daily Trips. He owens his Own truck. started his own Company. "Valencias Trucking" 1 Driver (himself), 1 Truck. (hes Bussinesss License is Sole Propiertoship )
Anyways, He wants me to Become a Freight Broker, So I can broker for him and Shippers that He already knows. He's been basically doing Jobs from Load Boards.. So He gets to meet the Shippers when he delivers. and He has been told, if He knows a Broker, they can switch.
For BOND I will use BMC-85 to use my Rental properties Liquidity as collateral and dont pay Nothing a month. and i have 700 + credit score.
My Question is..
What is the best way to structure my Freight Broker Business. ?
LLC I believe, Instead of Sole Proprietorship since I owe 2 rental properties. and have about 50k cash saved up.
Or what about General Partnership ?
Or Can I use my brothers Business License and USDOT number.
Or I have to get my Own Business License and my Own DOT number
About Insurance > contigent cargo and general liability
I know most shipping companies will request that you present these before you begin work together.
BUT What broker insurance is Mandatory to get my Broker Authority ? is it only the BOND.?
Thx in Advance
Becoming a Freight Broker in CA, noobie questions
Discussion in 'Freight Broker Forum' started by Truckie2018, Nov 17, 2017.
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Wow. Dude... what do you know about Transportation or Logistics?
All that tech background buys you nothing at all if you can't find good freight at decent rates. Sure, computers are a big deal at most brokers, but they aren't THE deal - you are. It takes negotiating and sales skills, and if you really want to focus on ancillary background, you need language and communications skills, organizational skills, a background in business law, some notion of international law if you plan on handling international freight, bookkeeping and accounting skills, a pretty good understanding of tax law...
Jesus, man, you don’t even know whether or not to incorporate, yet! This is an unbelievably bad idea, and you should run away from it. As they say in business; "stick to your core competencies". If you're a good tech, then be a good tech. Don't walk away from what you're good at, to be terrible at something else.emeraldladdie and boredsocial Thank this. -
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I Just got Bashed on.. Well I anticipated an answer like this So I used my Technical researching skillz and Got my own answers.
1. Both LLC and Sole Proprietorship will give you the same tax Savings, Since my starting income will be relatively low.. LLC is more complicated to setup but protects you from Personal Property in a Law suit.
2. I need my own motor carrier and DOT number (MC# and DOT#),
3. The broker is not required to carry "cargo" insurance; the motor carrier will be responsible for this.
However, there is "contingent" cargo insurance available for freight brokers. Contingent cargo insurance is not required and is not recommended, especially starting out. Why? You simply won't have that much liability or exposure starting out and there are too many "loop holes" in the policies.
Nice. Thx for the Answers guys.
PS, I will keep my 8-5 Day job.. and do my brokering Job as part time..
When ever I feel that I learned the brokering in and outs, I will quit my job.. my my CDL and buy my own truck.Last edited by a moderator: Nov 17, 2017
Reason for edit: Skirting profanity filter -
You have learned just enough to make an attempt, and fall on your face - and probably take your brother with you. If you must go from something that you're good at, to something that you aren't, then at least work for an established broker, first, and learn the ropes from someone experienced and successful. Even if you work for an idiot, you'll learn something from watching them screw up. Being a successful computer tech can be as lucrative as any transportation industry job, and you have a lot less of a learning curve to climb, there. Consider leveraging the skills that you already have.Last edited by a moderator: Nov 17, 2017
Reason for edit: Edited quote -
Yup I make 26 an hrs ,and its a Full time Job.
I'm currently a Service Desk Analyst. I'm the best in my Team.
I bring in about 2400 By-weekly before tax...
I want to make the Same or more and work from home..
save me the 2hr commute to my office everyday in LA traffic.
have more flexibility and freedom, be my own boss.
Have more time for my future family, all while working from home and making the same or more money?
or maybe its all a pipe dream.. -
Have you tried using the search box above ? Your question has been asked numerous of times. I’m sure you will fine what your looking for if you use the search box.
Crude Truckin' Thanks this. -
Honestly? Go learn under another company's MC.
It sounds like your brother is selling you a false bill of goods. Being a broker isn't easy. You won't jump in and start making what you make now. You won't touch that for months without some considerable skill and luck.
This isn't a career path to jump into blind. You talk.about freedom- here's the thing. I don't take vacation. I answer my cell phone and email outside of office hours. I spent months making an absolutely soul crushing amount of cold calls to get to where I'm at, and by no means am I the best broker in the world. I'm pretty good, but I work for someone else.
That's the other thing here, too. Even assuming you have your own numbers, you always work for someone else. Two people in any transaction, really, if you're smart. The first person is your paying customer, and the second person is your carrier. I'll leave you to figure out what that looks like.
Bottom line is this. If you're deadset on doing this, I sure as hell can't stop you. But you'd be smart to learn while being paid by someone else. -
Yeah, at least go be an agent for another brokerage first. You can probably find a reputable one that will bring you on without a book of business if you display a fraction of your enthusiasm and knowledge on other matters you are discussing here.
I got my broker authority while I still owned assets and I was lucky to get out of that situation before it sank me. Like @PPDCT says it will take you months if not longer before you see a significant financial return on your investment of time, no matter what route you go. Even if you think you have solid customer leads, etc. prepare yourself to make a quarter or less of what you project you can bring in (at least at first). Shippers go out of business, the economy changes, carriers you think you can work with find a better deal, etc. Basically imagine the worst case scenario and multiply it by three. If you think you can survive that, then you will probably will be ok. It can take a long time to straighten things out and survive the swings of the industry.PPNLE Thanks this.
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