In order to start a freight brokerage, there are certain steps that must be taken to obtain freight broker authority. This article will provide an overview of the process as well as the associated costs.
Step 1 – Registration
The first step in obtaining freight broker authority is to register with the Federal Motor Carrier Safety Administration (FMCSA). This can be done online through their website. There is a $300 filing fee associated with this step.
Step 2 – Surety Bond
The next step is to obtain a surety bond. This bond is a financial guarantee that you will adhere to all regulations and laws associated with being a freight broker. The FMCA requires freight brokerages to maintain a $75,000 surety bond. The cost of this bond will vary depending on the size of your business and your creditworthiness. It can range from $938 to $2,000.
Step 3 – License
The final step in obtaining freight broker authority is to obtain a license. This license is obtained through the FMCSA and costs $300.
Associated Costs Breakdown
The total cost of obtaining freight broker authority will be between $5,500 and $11,500. This cost can be broken down into the following categories:
- Registration fee: $300
- Surety bond: $5,000 – $10,000
- License: $200
Conclusion
The cost of obtaining freight broker authority may seem like a lot, but it is important to remember that this is a business investment. By taking the time to obtain the necessary authority, you will be setting yourself up for success in the long run. Freight broker authority will give you the ability to legally operate your business and give you the peace of mind that you comply with all regulations.