You can begin doing business as a freight broker

FIRST, APPLY FOR YOUR USDOT NUMBER. You’re going to need it on a lot of other applications, so it will speed things up if you get it ahead of time.

NEXT, REGISTER WITH THE FMCSA. You’ll need to fill out the OP-1 Application for Motor Property Carrier and Broker Authority, to receive your MC number or FF number. There is a $300 filing fee that must be submitted, along with your application. OBTAIN A SURETY BOND AND APPLY FOR PROOF WITH THE FMCSA. Freight brokers are trusted by both shippers and carriers — so it’s essential that you’re properly insured. This protects you and your customers. In the event that a shipper is unable to pay for a shipment, the freight broker is responsible for paying the cost. And, if you’re unable to pay, your Freight Broker Bond (BMC-84) will act as insurance, covering the expense. To apply for a bond, you’ll need to submit an application to a reputable insurance firm, which will conduct a background check and credit check. The cost to obtain surety bonds for freight brokers may range from $1,800 and $10,000 a year, for $75,000 of coverage. Once you receive coverage, your insurance provider will need to provide proof of that coverage to the FMCSA.

DESIGNATE A PROCESS AGENT. Within 90 days of receiving your MC or FF number, you will be required to designate a process agent for any state in which you will do business. This will be someone who represents your company and can receive documents in the event of legal action.

RECEIVE YOUR LICENSE. Step 5 is the easy one — and it’s also the most exciting. It’s a great day when you receive your License from the Operating Authority. This means that you can begin doing business as a freight broker. Welcome to the world of Logistics. We wish you a safe and successful journey.