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Total Cost of Starting a Freight Brokerage LogisticsAcademy.org

Legal costs and office expenses for starting a freight brokerage. Can you afford to start a freight brokerage? Many Freight Agents aspire to become freight brokers but never take the entrepreneurial leap of faith. I'm here to tell you that it's not a far of a jump at all! If you have questions about Freight Broker Training or getting started visit LogisticsAcademy.org

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Total Cost of Starting a Freight Brokerage LogisticsAcademy.org

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  1. Starting a Freight Brokerage: Legal Fees and Office Expenses to expect LogisticsAcademy.org

  2. LogisticsAcademy.org Logistics Academy is an online Freight Broker Training School. Many people want to know if cost is a barrier to entry for them. A Freight Brokerage is a very inexpensive business to start and it is a great opportunity for those interested in working from home. If you have any questions visit LogisticsAcademy.org on LinkedIn, YouTube, or Google+!

  3. The Initial Legal Costs Every brokerage is going to have its own unique set up. Here are some of the expenses that a typical modern day freight broker should expect to incur right off the bat. These expenses are a great example of why you need to hit the ground running when you start your brokerage, start ahead of the curve with our Freight Broker Training Course.

  4. Obtaining Your General Business License Depending on your state guidelines: $150 - $300

  5. Federal Tax ID Number: $0

  6. FMCSA Form OP-1 Application $300 non-refundable filing fee

  7. BMC-84 Surety Bond $1,100 – $2,250 annually. Brokers with a rate over $2,000 are usually permitted to pay monthly, quarterly, or bi-annually. Your other option is the $75,000 BMC-85 trust fund.

  8. Contingent Cargo Insurance For a standard policy that covers $100,000 worth of loss or damage, expect a rate of $1,200 – $1,500 per year. These numbers are calculated with a $1,000 deductible in mind, please note that rates may change based on your deductible and other factors.

  9. Form BOC-3 Free if you can fill it out alone but you might find that it’s worth the $20-$50 to work with someone. You can find a contact for you in your state on the FMCSA Website.

  10. Unified Carrier Registration (UCR) The UCR collects $76 annually. You must file by the first of the year.

  11. Standard Alpha Carrier Code (SCAC) $70 application fee, to stay valid your code must be renewed each year.

  12. Total Legal Costs: $3,000 - $4,500 • General Business License: $150 - $300 • Federal Tax ID Number: $0 • FMCSA Form OP-1: $300 • BMC-84 Surety Bond: $1,100 - $2,250 annually • Contingent Cargo Insurance: $1,200 - $1,500 annually • Form BOC-3: $20 - $50 • UCR: $76 annually • SCAC: $70 application fee

  13. Office Set Up Costs The previous “total costs” of course is the total cost of getting your brokerage up and running initially and your legal expenses for the entire first year. The required legal costs and fees of a new brokerage will add up to about $2,450 to $3,900 annually. The total cost did not factor in the office expenses of a Freight Broker. Here is a list of the office essentials with some general pricing information.

  14. Freight Broker Office Setup • 2 line Phone System: $50 - $200 • Fax Machine: $60 - $300 • Computer: if you're here… you're probably set! • High Speed Internet (& phone line provider): ~$200/month • TMS (software): +$150/month • Load Board Subscriptions: $140/month • General Office Supplies: ~$50/month

  15. Total Costs • Initial Legal Fees: $3,000 - $4,500 • Initial Office Expenses: $650 - $1,000 • Monthly Office Expenses: ~$500 • Annual Legal Costs: ~$2,400 - $3,900

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