Prior to going about filling out the forms and applications for your Broker Authority (Freight Broker License), you have to make sure you possess a business set up and able to go. This is often a rather daunting task, but can really be quite simple if you take a little time to educate yourself and just take action.
First of all you need to decide on a type of conducting business. You have several different options here. Your choice usually depends on in which you see your company pointed in the next several years. How about 10 or Two decades down the road? Have you been going into business alone? With a friend? Are you planning on expanding or hiring other freight agents? These questions, among other considerations, will help you select how to carry out starting your company.
A corporation is probably the most desirable of forms of conducting business, as it separates your assets (being an owner) from the assets of your company. What this means is if something goes terribly wrong and someone really wants to sue your organization, they are able to take money from the company, but in many instances cannot take any money or assets from you (your home or banking account, etc.). As a freight broker, coping with large trucks and potentially very valuable cargo loads, this is very desirable for you personally.
The drawbacks to incorporation for the company are somewhat more rigorous regulation and complex tax law. It’s also somewhat harder to become a corporation, as there are more steps and complicated application process. The time it will require makes it worth while. An alternate from the corporation is an S Corporation, which carries most of the same benefits as a Corporation, but is made for smaller companies still looking for …