1. Broker’s Authority, available through the FMCSA for a $300 fee (non-refundable) charged during the application process
- fill out the OP-1 form
- file for your authority to operate as a broker
Source: www.reoadvisors.com
2. One of the requirements for freight brokers to operate legally is to have a freight broker bond, which you can obtain from a bank or bonding company;
- you’re required to carry a $75,000 bond or trust (proof of insurance coverage). The form filed with this is BMC-84 or BMC-85
In 2013 freight broker bond increase, It jumped from $10, 000 to $75,000 and with this legal force many of the nation freight brokers were forced into bankruptcy, they simply couldn’t meet the new requirements.
3. File a Unified Carrier Registration (UCR)
4. Processing Agent, which runs approximately $50, with form BOC-3
- Designate a process agent in each state in which you will do business. These agents will receive documents in a legal proceeding brought against a broker or carrier. You can designate an agent by submitting a BOC-3 form (brokers may designate themselves as their own process agents in the State in which they are writing contracts) to the Federal Motor Carrier Safety Administration.
- Application processing time: Approximately 4-6 weeks
Additional advice:
Business bank loan – be in a financial secure position to cover 2-4 operating months, be sure that you have enough funds to cover the cost for the carrier services in case your clients don’t pay you in time.
