It is a good time to become an independent freight agent. There has been an annual 47% increase in the number of people who work as independent freight agents each year. You have the opportunity to create long-term relationships with contract carriers and shippers, as well. Additionally, you have a lot of freedom working as an independent freight agent.
The majority of freight agents register their business as INC or LLC. You can enjoy a number of benefits if you set up your freight agent business as an LLC, though. Keep reading to learn more about setting up freight agent LLC.
You Must Have Freight Agent Training to Set Up a Freight Agent LLC
Before you are ready to set up your own freight agent business, you need the proper freight agent training. This training is required so that you can be successful in working as a freight agent. Thankfully, you can find many companies that offer the required freight agent training that you might need. In the event that you have a logistics background or previous freight agent experience, you might only have to learn new processes and new software. Once you have received proper freight agent training and are up to date with the processes and software, you can begin setting up your freight agent LLC.
Put The Proper Documentation in Order and Get The Right Tools
As with setting up any kind of business, you have to have the proper documentation to set up a freight agent LLC. You will have to take care of a few administrative tasks before you can set up your new business. The first thing that you will require is a registered business. No matter where you are operating, you will have to register your business with that particular state. You will also need to have a copy of the state-domiciled business registration documents, as well.
You can usually get such a copy relatively easily, though this may depend somewhat on the state. As previously stated, the majority of freight agents register their business as INC or LLC. You can check out this article for more information on INC, LLC, and the differences between the two types of businesses. After that, you will have to know your federal TIN, which stands for a tax identification number.
One more thing that you will require in order to work as an independent freight agent is a computer that has a good Internet connection. You may even want to test your Internet connection to see if it is strong enough for your freight agent work. Additionally, you will require access to Microsoft Excel, Microsoft Word, and other Microsoft Office products. You can use Tallgrass Freight, or a similar company, as a resource in order to help you get started, too.
Create a Business Plan
A business plan is critical for the success of your freight agent LLC. It is best to develop a business plan early on in the process of setting up your freight agent LLC. A business plan can help you direct your efforts more effectively. You should look for your target niche and have some idea about your business’s potential customers. Of course, you can update your business plan as necessary, but it is good to have some sort of business plan when you start the process of setting up a freight agent LLC.
Hire Employees and Set Up Your Office
The final two steps in establishing an independent freight agent LLC are to set up your office and possibly hire some employees. You will definitely need an office in order to work as an independent freight agent. You may also need some employees to help you run your freight agent LLC. It is best to properly vet potential employees and make sure you only hire qualified candidates. Additionally, you should consider where you set up your office, since it is ideal if your office is in a convenient location for customers and employees.