If you want to become a registered vehicle shipping broker, which means charging car transport costs from people to move their vehicle via car carriers, you need to go through a legal verification process. Once this process has finished, you will be provided with MC or Motor Carrier number and allowed to operate in the state you have received it. To know what the process is, how to apply, what the fees are and how long it takes to get approved, read this detailed guide below:
Register Your Business:
First, choose a business name. Once done, incorporate your car transport business by selecting a legal structure. Whether you opt to be an INC, LLC, or Sole Proprietorship, you need to take care of this step; an accountant or attorney can help you here.
Next, you need to get the EIN number, aka Employee Identification Number, which is basically your business’s social security number. Ding this means that you will not have to provide your personal social security number when doing business deals.
Fulfill Surety Bond:
To be able to become a registered auto transport broker, you need a $75,000 surety bond. This is necessary for you to get your application for MC# approved. If you fail to do this within the period your application is processed, then the application will be denied.
There are different companies to help you with the bond, so make sure to shop around and see which one is the most professional and best at the most affordable rates.
Official Broker Registration Process:
Once you are done with the above two steps, you can start the broker registration process and its steps are shared on the official website of FMCSA. However, here’s a rundown of what needs to be done:
Once your application is fully approved, you should get your MC number allotted.
How Long Does it Take For the Application to Process?
For the new applicant, it can take anywhere from 20 to 25 business days unless the agency requires further review due to any reason. In this case, it can take up to 8 weeks or more.
You can check your application’s status by visiting the SAFER Website and putting in the USDOT number, MC number or the Name of Your Company in the Search Box.
The whole process of registering for MC number is lengthy, but it is a MUST if you want to operate legally and gain your customers’ trust because they DO ask for an MC number. So make sure to go through the complete process, use all the right documents and have some patience, you will soon be a registered car shipping broker.
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