How do I become a broker?

A broker arranges, for compensation, the truck transportation of cargo belonging to others, utilizing authorized for-hire carriers to provide the actual truck transportation. A broker does not assume responsibility for the cargo and usually does not take possession of the cargo.

• Authority to operate: Brokers of general freight and household goods must register with FMCSA by filing a Form OP-1, “Application for Motor Property Carrier and Broker Authority.” Authority is granted if the FMCSA finds the person fit, willing and able to be a broker for transportation and to comply with all applicable laws and regulations.
• Financial responsibility: A property broker must have a surety bond or trust fund in effect for $75,000 to ensure financial responsibility by providing for payments to shippers or motor carriers if the broker fails to carry out its contracts, agreements, or arrangements for the supplying of transportation by authorized motor carriers. The FMCSA will not issue a property broker license until a surety bond or trust fund for the full limits of liability is in effect. Evidence of a surety bond must be filed using the FMCSA’s prescribed Form BMC–84. Evidence of a trust fund with a financial institution must be filed using the FMCSA’s prescribed Form BMC 85. The broker license remains in effect only as long as a surety bond or trust fund remains in effect.
• Process agent designation: A process agent is a representative upon whom court papers may be served in any proceeding brought against a broker. When applying for broker authority, applicants must submit Form BOC–3, “Designation of Legal Process Agents.” Brokers must list process agents in each state in which they have an office and in which they write contracts. Many commercial firms will arrange process agents in any state for a fee.
• Forms and fees: A separate filing fee of $300.00 is required for each type of transportation authority requested. The forms (OP-1, ) are available from the FMCSA Division Office in each State or at one of the FMCSA Service Centers. The forms may also be downloaded at https://www.fmcsa.dot.gov/registration/registration-forms.
• Regulatory responsibilities: Authorized property brokers have a number of ongoing regulatory responsibilities under 49 CFR 371 in areas including recordkeeping, accounting, and compensation.