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A Special Note for Truck Owners …
If you are currently operating a trucking company and plan to enter the freight brokerage business, here are some tips and facts:
a. As a freight broker you are required by law to segregate your accounting revenues and expenses from any other business operation.
b. If you segregate these revenues and expenses, you would then most likely do a consolidated balance sheet, however –
c. Under the MAP21 legislation, a motor carrier – without its property broker authority – may not broker, tender or arrange for the transportation of cargo to another motor carrier except in an “interlining” situation.
d. To eliminate potential problems related to names on bills of lading or making a misrepresentation, it is best for a motor carrier to set up an entirely different company for the freight broker operation other than a d/b/a within a trucking company.
e. There may be other unforeseen problems by co-mingling your freight broker business with any other business entity even if you segregate the revenues and expenses.
f. For example, your carrier insurance company may not allow this co-mingling under any circumstance.
g. Save yourself at least some peace of mind – if you want to broker freight as a trucking company, set up either an LLC, a corporation or a sole proprietorship outside of your trucking company.
h. Lastly, this is just one very small part of my comprehensive freight broker training. During training, I outline a strategy of how to work your trucking company and your freight brokerage with the shipper and your trucking company’s freight brokers that you may have been using.
It’s not as complicated as it might sound but it is very powerful and can help rocket your business upward!