How to Get a Freight Broker License: Requirements & Cost

To start a freight brokerage, you will need to obtain a freight broker license. This article will provide an overview of the requirements and costs involved in obtaining this license. The cost of the license is $300, and there are also other costs associated with getting started such as obtaining insurance and registering your business.

 

Freight Broker License Requirements

To get a freight broker license, you need to submit an application to the Federal Motor Carrier Safety Administration (FMCSA). This application costs $300 and you also have to obtain a surety bond. You will need to provide proof that you can pay for any damages that might happen. This can be done with insurance or a trust fund. In addition to the application and surety bond, you will also need to provide the following:

  • Your social security number
  • A copy of your birth certificate or passport
  • Proof of U.S. citizenship or legal residency
  • A list of any business names you have used in the past 3 years
  • Your physical address
  • A list of any motor carriers you have used in the past 3 years
  • Your email address
  • Your credit report
  • A copy of your driver’s license

Once your application has been received, the FMCSA will conduct a background check. Your application may be denied if you have any criminal convictions or outstanding judgments against you.

If your application is approved, you will be issued a freight broker license. Approval can take up to 120 days. You must renew your license every two years.

 

Freight Broker License Cost

The cost of a freight broker license is $300 for the initial application and $300 for each renewal. You will also need to obtain a surety bond in the amount of $75,000. Your actual cost is a percentage of the bond amount and can range from as little as $938 to $7,500. If you choose to insure your freight brokerage, you can expect to pay around $3,000-$3,600 per year for this coverage.

 

Operating Authority or MC Number

You will also need to obtain an Operating Authority or MC number, which is a unique identifier issued by the FMCSA. There is no cost for this number. It is important to note that you cannot operate as a freight broker without an MC number.

 

Standard Carrier Alpha Code (SCAC Code)

In order to ship freight, you will need to obtain a SCAC code from the National Motor Freight Traffic Association (NMFTA). This code identifies your freight brokerage to shippers and carriers. There is a one-time fee of $72 for this code.

The benefits of having a SCAC code include:

  • Eligibility to participate in government freight programs
  • Preferred billing status with many carriers
  • Access to reduced rates for trucking services

 

Conclusion

Obtaining a freight broker license is a necessary step in starting your own freight brokerage. The cost of a freight broker license is $300 for the initial application and $300 for each renewal. You will also need to obtain a surety bond in the amount of $75,000 and a SCAC code from the NMFTA.


Other Helpful Articles

Does a Freight Broker Need a MC Number?

Do Freight Brokers Need a SCAC Code?

How To Get a Surety Bond as a Freight Broker