In the simplest of words, a freight broker MC number is the first step to getting your freight broker authority. If you are a freight broker, it means that you are an individual or a corporation that is involved in the transportation of property which excludes any household goods.
You receive payment for arranging the transportation of the property and you use an authorized motor carrier for this service. As a broker, you do not assume responsibility for the property. You do not take possession of the property either.
If you want to activate your broker authority, you must apply for a broker number which is your MC. You must also have a USDOT number and BOC3 list of process agents. In addition to this, you are also required to enroll in the unified carrier registration program. As an applicant, you must have $75,000 in a surety bond.
Understanding Broker Authority
If you obtain a broker authority license, it is going to allow your company to schedule and hire carriers for the transportation of cargo that belongs to third parties. These are the people who transport the cargo. If you apply for registration and all the information submitted by you checks out, you will receive your freight broker MC number.
Understanding The Various Requirements For Brokers
As a broker, you must register with the federal motor carrier safety administration. This is to handle financial liability coverage. As a broker, you will be required to keep all the information pertaining to financials, administration, and record keeping. You should not represent yourself as a motor carrier. You should not represent yourself as the custodial of the property either.
Types Of Brokers
1. Property Brokers
You will be considered a property broker if you are a sole individual or a singular corporation involved in the business of handling transportation of property. It should not encompass household goods. The transported goods are owned by others. You get paid to transport this property. As a broker, the property is not your responsibility. You are not allowed to have any possession of it either.
2. Household Goods Brokers
A household goods broker is an individual or a partnership company or a corporation that receives payment for the transportation of household goods that belong to third parties. You do not have any responsibility for these goods and you do not take possession of them either. Household goods are all the personal items and property used in a home. You must register as a household goods broker if you want to handle household goods.
Understanding Other Types Of Broker Authority
Primarily, there are two types of authorities that have been listed above. But there are numerous other authorities as well that you might want to obtain depending upon the industry niche you work in. You must choose the right authority and for that, you should assess the type of goods that you want