Carrier onboarding packet

Template from tincompliance.com. Three documents in one file for brokers, 3PLs and motor carriers: the carrier onboarding checklist, the three-name match worksheet, and the factoring notice-of-assignment log. Owner-operators leased to a carrier are paid for services and get a 1099-NEC at $2,000 (2026); a broker or shipper paying a carrier for moving goods is paying freight, which Reg. 1.6041-3(c) and CCA 199919032 keep off the 1099 list, though many brokers file anyway. The authority and insurance checks apply either way.

Part 1. Carrier onboarding checklist

Carrier legal name: [ ] MC: [ ] USDOT: [ ] Onboarded by: [name], [date]

Tax identity

☐ Form W-9 received (Form W-8BEN-E for a Canadian or Mexican carrier). Line 1 is the legal name of the TIN holder. Owner-operator asked the question directly: SSN with the individual’s name (single-member LLC on line 2), or EIN with the entity’s legal name. Never an LLC name over a personal SSN.

☐ Name and TIN pair checked against IRS records; result and date logged. A mismatch is resolved before the first settlement, while the carrier still wants the load.

☐ Backup withholding flag set if the carrier refused a TIN; 24 percent applies to each settlement until a TIN arrives, and the withholding is deposited on Form 945.

Operating authority and insurance (FMCSA public records)

☐ Operating authority active for the service type (property, household goods, broker); MC and USDOT numbers match the W-9 legal name; authority grant date recorded.

☐ Insurance on file with FMCSA (BMC-91 or BMC-91X for liability; BMC-34 for cargo where required) and a current certificate from the carrier’s insurer naming the same legal name; expiration dates calendared.

☐ No out-of-service order; safety rating reviewed; date of check recorded. Re-check monthly for active carriers and before any load after a lapse.

Fraud and sanctions

☐ Three-name match completed (Part 2): W-9, FMCSA record, insurance certificate and bank account name agree. Any disagreement is resolved by documents, not by phone, before the first load.

☐ Carrier and principals screened against the OFAC SDN and consolidated lists; result and date logged.

☐ Contact details verified against the FMCSA record, not against the email that sent the packet; a changed remit-to address or bank account is confirmed by a call to the number on the FMCSA record.

Payment setup

☐ Factoring: notice of assignment on file (Part 3); payments go to the factor; the 1099-NEC, if one is filed, goes to the carrier under the carrier’s TIN.

☐ Fuel advances, detention and accessorials are coded as part of the carrier’s reportable amount; reimbursed tolls and scale fees under an accountable arrangement are coded separately.

☐ Record retention: W-9, match result, FMCSA and insurance printouts, OFAC result and this checklist filed with the carrier record.

Part 2. Three-name match worksheet

The common fraud pattern is a real carrier’s MC number presented with a different TIN and bank account. A name that does not agree across these rows is a fraud signal before it is a tax problem; the load does not move until the documents agree.

Completed by: [name], [date]. Reviewed by: [name], [date].

Part 3. Factoring notice-of-assignment log

The notice of assignment changes where the money goes, not who earned it. Keep the carrier’s TIN as the 1099 payee; a 1099-NEC to the factor is a wrong-TIN return and the carrier’s own return is missing.