How To Become A Freight Broker
For a step-by-step guide on the process to become a freight broker please read our How It Works
section.
Before an individual can apply to become a freight broker, that individual must have some training in the
industry or take a freight brokers training course and then receive a USDOT number from the U.S,
Department of Transportation. Though having a USDOT number is not a technical requirement of
becoming a freight broker, the number is a requirement on the application to become a freight broker.
There is NO EXAM required to become a freight broker. Some “schools” suggest there is. Not true. Any
exam is their internal exam, not an official government entrance exam. School is not required, but
training is necessary if you plan on succeeding and making money in the brokerage industry.
Broker Authority
Broker authority is a license granted by the Federal Motor Carrier Safety Administration and it is
required to operate as a freight broker within the United States. Applying for broker authority requires
the applicant to submit his name, business contact information, and the legal name of his business as
defined in his home state if he plans to operate his brokerage under a business name instead of his legal
name. You are now ready to submit your application to the Federal Motor Carrier Safety Administrations
to apply for a freight broker license. You just need to file an application. The FMCSA charges $300.00 to
apply for operating authority. Then have a legal agent in each of the 48 continental states to receive
legal process and either a bond or a trust fund agreement of $10,000. You apply for your License or
Authority online, and will receive your MC number in minutes. The process can be confusing, thats why
our license filing service is included in our package.
Bonding
To operate as a freight broker, you must take out a surety bond or have a trust fund established that will
cover the expense of lost or damaged shipments. The value of the surety bond or trust fund must be
equal to or greater than $10,000 to be approved by the FMCSA. A credit check or other background
investigation may be required by the issuing agency when you are applying for a surety bond.
Process Agents
Legal process agents are law firms or other legal representatives who are registered with the FMCSA by
a freight broker. A broker must register a process agent in each state where he does business. If a
process agent used by a freight broker is a law firm that has members in multiple states, the firm can be
registered as a process agent in each state it has a legal presence in.