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Trucking Industry

Due to the influx of clients who would like to either enter the trucking industry as a BROKER or a DISPATCHER, transition from W2 employee to OWNER OPERATOR, or would like to own a FLEET of trucks as a distributor.


The are a series of Youtube videos and posts on social media that tell you that you can make a lot of money in the trucking industry effortlessly without much responsibility or much risk. First, when you decide to become a business owner, you have to come to the realization that you will have a LOT of responsibility, will have to encounter a lot of accountability, and there will always be risks.


It is important for business owners to LEARN their industry BEFORE going into business operations. Or else don't expect miracles of having a successful business. You get in what you put out. Period.



You reduce your risks by becoming EDUCATED and learning the industry. Not by following copy and paste models of people that you haven't verified their backgrounds and knowledge base because that will put in in a HUGE LIABILITY RISK.


Definitions


Broker: Freight brokers oversee the transportation of shipments, including finding the right carrier, negotiating a fair price, and keeping the shipper updated on the shipment status. A Broker does not assume responsibility for the property and never takes possession of it. Brokers do not have to own any vehicles. They know where their routes, their freight terminal locations, and the current rates in different areas.


But to be an effective Broker, staying on top of carrier compliance. Many Brokers feel like they don't need to do this, but your brand becomes mud if you don't take pride in what you do.


There are software tools available to ensure carrier safety and compliance faster, easier, and more reliable. You should also have a business mind to be able to negotiate and crunch numbers. Income range from $42,926 per year to $93,618 per year. Check out how to become an effective Broker.


Carrier: Freight carriers are the individuals or companies that transport goods to their destination on behalf of a shipper. place to another. But they have to do this safely, on time, and in compliance with local, regional, and federal regulations. This is why Brokers and Fleet Owners would make an effort to check the safety record of their drivers before hiring or contracting with them. (How to Protect your Safety Record)


Shippers: Shippers are the companies that have or make the goods needing to be shipped. The type of freight carrier you use or want to become depends on the method of shipment.


Freight Rates: Freight carriers use several factors to determine rates, and it’s important that both shippers and brokers understand them. The factors are freight weight, size and density, freight type, supply & demand, distance, fuel costs, and access charges.


Dispatcher: A freight dispatcher represents your trucking company in negotiating freight. They find new customers, book new loads, and manage delivery schedules for you. Many trucking dispatchers will also take care of back-office tasks, from customer support to billing and payment collections, and even maintaining motor carrier compliance.


Other things you need to know:


One you learn and understand these things, Tax Star can help pick your tax structure, form your business, CORRECTLY, and put you in a plan to help you protect your safety record.

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