In 2022, you can make a great living by becoming an auto transport broker, with it proving to be a fast way of earning a steady income. However, the process of becoming an auto transport broker isn’t necessarily the most straightforward, and for many, it can actually be quite confusing.
That’s why we’ve created this guide — we’ve broken down all of the steps that you should follow in order to get started. By following these necessary steps, you can start your career as an auto transport broker in no time!
Choose a Name For Your Business, and Begin Incorporating It
First and foremost, you’ll need to choose a name for your business. When picking a name for your business, remember to choose something that is easily searchable, relevant to your line of work, and easy to remember. Additionally, your business name should be something that still manages to stand out; prospective clients will likely see the name of your business before anything else, so your name should stand out from others. Otherwise, it will just get lost in the shuffle.
Once you have a name for your business picked, you can begin incorporating. Incorporating is choosing a legal structure, whether your business to be Sole Proprietorship, LLC, or INC. To help decide, we recommend you talk with an attorney or accountant regarding this. This decision will affect several aspects of your business, including how you file your taxes as well as your liability if your business is ever sued. Regardless of what choice you make, always remember to do your research first.
Get Your EIN
The next step is to get your Employer Identification Number or EIN. This is a nine-digit number that the IRS uses to identify your business. You can apply for one by visiting the IRS website and filling out Form SS-4.
File For Your DOT Authority and UCR Registration
Next, you’ll need to file for your DOT authority and UCR registration. The Department of Transportation (DOT) requires auto transport brokers to have a valid license in order to operate; this ensures that all auto transport brokers are held to the same standards set by the federal government. Without this license, you will not be able to broker any auto transport services. You can find more information about getting your DOT authority on their website.
As for UCR registration, this is something that is required by the Federal Motor Carrier Safety Administration (FMCSA). All auto transport brokers need to be registered with the FMCSA in order to stay compliant with their regulations. You can find more information about this on the FMCSA’s website.
Sign up for your BOC-3 Process Agents
After you have your DOT authority and UCR registration, you’ll need to sign up for BOC-3 process agents. These are the organizations that auto transport brokers use in order to comply with the requirements of the FMCSA. Without them, you will not be able to operate as an auto transport broker. You can find more information about this on the FMCSA’s website.
Fulfill your Surety Bond Requirement
The surety bond requirement is a $75,000 bond that auto transport brokers are required to have in order to operate. The purpose of this bond is to protect against any losses that may occur while brokering auto transport services. You can find more information about this on the FMCSA’s website.
Open a Business Bank Account
After getting all of the proper licenses and registrations finished, there are still several more things that you should get taken care of before starting work as an auto transport broker. The next step is to open a business bank account.
While not technically a requirement, it’s strongly advised to open up a separate bank account for your business. It will help you keep track of all of your business expenses and income, as well as simply help you be more organized while conducting business. You’ll want to have a separate account for your business so that you don’t mix your personal and business finances.
Payments: Choose Merchant Service
The next step is to choose a merchant service for your auto transport business. This is the service that you will use to process payments from clients. There are many different merchant services out there, so it’s important to do your research and choose one that is right for you.
Choose a CRM System
Next, you need to choose a CRM system, which is software that will help you to keep track of your clients and their respective information. There are many different CRM systems out there, so it’s important to do your research and choose one that is right for you.
Find Leads
After getting all of the proper systems in place, your next step is to find leads. There are several ways to do this, but perhaps the most common way is through using load boards.
A load board is a tool that allows you to find auto transport leads. There are many different load boards out there, with Super Dispatch and Central Dispatch being two of the most popular. The great thing about load boards is that you aren’t limited to just one; you can choose to use several load boards at once, which can help you to find even more leads. We’d recommend trying several different load boards, and see which ones you prefer most.
Outside of load boards, it’s possible to find leads through advertising via a professionally made website, a social media presence, and paid advertisements. All of these strategies, in addition to using a load board, are the most effective ways of generating leads as an auto transport broker.
Make Connections
After you have found auto transport leads, the next step is to make connections with them. This can be done through email, phone calls, or in-person meetings. It’s important to establish a good relationship with your clients so that they will use your services again in the future.
If you use Super Dispatch, however, all of your connections made through the load board can be easily contained via Super Dispatch’s convenient mobile app. Super Dispatch strives to simplify how brokers, dealerships, carriers, and auctioneers do business, by eliminating the need for physical paperwork, outside communication like emails or faxes, and shortening communication wait times. Our goal is to allow you to move cars faster, by providing an easy solution for all. If this sounds appealing, then you can request a free demo today.
