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 the Federal Motor Carrier Administration (FMCSA) through the Motus platform by Application for Motor Property Carrier and Broker Authority. Entities wishing to provide motor carriage and broker service must register with the FMCSA as both a motor carrier and a broker.
• 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 $300 application fee is required for each type of operating authority requested. Applications are submitted through Motus, FMCSA's online registration system. Additional filings, such as a BOC-3 process agent designation and proof of financial responsibility, may be required before operating authority becomes active.
• Regulatory responsibilities: Authorized property brokers have a number of ongoing regulatory responsibilities under 49 CFR 371 in areas including recordkeeping, accounting, and compensation.