How To Obtain Freight Brokerage License

by Carmen PickelNovember 25, 2021
How To Obtain Freight Brokerage License

Steps on How to Get a Freight Broker License

Apply to the FMCSA for MC authority.

The first and basic step to obtain a freight brokerage license is to get a Motor Carrier authority from FMCSA. Start by applying for a pin using your valid credit card. FMCSA will mail you your PIN in 4- 7 days. Once you receive your PIN, fill and submit FMCSA Form OP-1. Double-check your application to make sure it's completed correctly and completely. You'll need a $300 non-refundable fee, so don't forget about that! This includes all paperwork submitted during the process which should be filed in an extra copy of Form OP1 for safekeeping as well (plus any other documents necessary).

Designate process agents for U.S. state you'll operate in.

The next step is to select a process agent for each state in which your freight brokerage will execute contracts or maintain an office. A suitable person can serve papers if someone files a claim against the business, so they need access and authority over all paperwork filed with their designated agency. Different FMCSA-approved services are available that will connect process agents with your business. Once you've selected a service, they'll need to file Form BOC on behalf of the company in order for it to be designated as its own domestic agent or franchisee (as appropriate). Again make sure copies aren't too hard and keep these records safe!

Get a BMC-84 surety bond or BMC-85 trust fund.

All freight brokers have to either obtain a BMC-84 bond or establish an Intercompany Trust Fund BMC-85. These bonds guarantee compliance with the law and can be referred to as Freight Broker Bond (or Transportation), Interstate Commerce Commission (ICC) Bond, but all refer back these days specifically for your business needs - which is what you want! 

Apply for your Unified Carrier Registration.

Last, you have to apply for the Unified Carrier Registration (UCS) system. This online or mobile app can be used by freight brokers and pay a $76 application fee that allows them to regulate themselves through FMCSA monitoring programs!

We hope this blog was helpful for you. If you are interested in reading more such articles, visit LakeVille Motor

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