Get a Freight Broker License Today
Are you considering getting a freight broker license? If so, Moving Authority is the number one resource in the US for getting a license. And there’s no reason to delay becoming a freight broker. That’s because of all the benefits associated with working as a broker. It’s a rewarding, lucrative career that you can enjoy. Plus, it’s not that difficult to become a broker.
You can make plenty of money connecting shipped goods to trucking companies as a broker. But there are steps that you’ll need to take to get your license. After all, freight brokers get regulated by the FMCSA. (FMCSA refers to the US Federal Motor Carrier Safety Administration.) There are many FMCSA requirements, but the Moving Authority experts can go over them with you. Please feel free to scroll down and read our step-by-step guide for getting your license. If you have any questions about working as a freight broker, do not hesitate to contact us.
What Does a Freight Broker Do?
Think of a freight broker as the middleman in the freight transportation process. Freight brokers never ship cargo on their own. And brokers also never supply cargo that gets shipped. Instead, they negotiate transactions between carriers and shippers of goods.
Keep in mind there are key differences between freight forwarders and freight brokers. The broker never handles an actual shipment. But the freight forwarder takes possession of goods that will get shipped. Next, the forwarder consolidates different small shipments into one big shipment. Then, the forwarder coordinates the transportation of the shipment. Sometimes, one US company will provide both forwarding and brokerage services. For now, let’s concentrate on freight broker certification.
The Key Advantages of Operating as a Licensed Broker
Do you value independence, freedom, and having strong earning potential? If so, there’s no wonder that you're considering working as a licensed freight broker. In fact, there are countless advantages that come to you once you secure your broker license. Let’s now go over three of the advantages that come with securing a license.
Broker Advantage 1: There’s No Cap on Your Earnings
If you're a broker of freight, then you have an almost-limitless earning potential. As long as you work hard, you can make a lot of money as a broker with a license. A broker gets paid through commission for every load he or she moves and books. Because of this, successful brokers can make over $150,000 per year.
Many brokers even decide to create their own brokerage companies. Once they do, these brokers can manage a team of other freight brokers. Now, starting your own brokerage is no easy task. That’s because a broker must have a lot of startup capital. It’s best to start out as an independent freight agent. Then, over time, you can build up your own team of brokers.
Broker Advantage 2: There’s No Time Spent Traveling on the Road
Are you sick of commuting or having to spend a lot of time on the road? If so, you're going to love working as a freight broker. In fact, here's a key reason why many truck drivers decide to become brokers. They realize that they're missing out on too many holidays and birthdays.
No matter your industry, having less travel and commuting time is ideal. That’s why working as a broker is one of the best jobs in the transportation industry. A broker can work from the convenience of his or her home. Plus, you can take time off when you want to. This means you can kiss the days of having to request vacation time and PTO goodbye.
Broker Advantage 3: Cheap Startup Costs
Most newcomers can get started becoming a broker for only a few thousand dollars. Sometimes it’s even less if you begin working on behalf of an established freight broker. The key is to start small and begin operating as an independent agent. Then, you can build up your business as a broker of freight over time.
The Six-Step Process for Securing a License To Broker Freight
We know that you're now wondering what the requirements are for becoming a freight broker. Plus, you also need to know the common processes for getting your license to broker freight. Well, Moving Authority has created the following six-step process for becoming a broker. If you have any questions about a step, do not hesitate to give us a call. We can answer all your questions about how to become a broker and receive your license.
Step One: Enroll in a Broker Training Course
There’s no law stating that you have to enroll in a broker course or training program. But if you do so, you’ll get on the fast-track toward becoming a broker with a license. The key is to not enroll in a broker of freight course that will waste your time and money. That’s why Moving Authority has created our own freight broker license course. You can find more information about it on our website. Our online training course will teach you all the basics of how to get your license. In a short amount of time, you can master many aspects related to operating as a broker of freight.
Step Two: Select a Business Structure
Choosing the right business structure is crucial to your success as a US broker of freight. There are three different types of freight broker businesses. There's a corporation, partnership, and sole proprietorship. Think about which of these appeals to you the most before you get your license.
Every broker-business structure has its own documentation requirements. Plus, there are different tax implications for every subset for a broker of freight. A business structure can have many long-term impacts on a broker and also a company. That's why it's best for new brokers to receive guidance from a tax professional. Also, a business attorney can assist a broker that’s in need of a freight license.
Step Three: Fill Out an Application for Broker Authority
The next step toward getting a license is to apply for broker authority. You have to do this by filling out FMCSA Form OP-1. Then, you will need to submit Form OP-1 to the FMCSA. Do not despair if the broker authority form seems complicated. You can contact Moving Authority for help filing the FMCSA OP-1 Form.
Here’s a key decision that every new broker must make before filing. You have to decide if you're applying as a Broker of Property (except Household Goods). Or, if you're applying to the FMCSA as a Broker of Household Goods. But here’s the catch. You can apply for both at the same time. Again, feel free to call Moving Authority if you have questions about this. As of now, the FMCSA charges a $300 filing fee. The fee is $600 if you select both broker designations. We recommend that you apply for broker authority online. That’s because the FMCSA will then provide you with a motor carrier number right away. You’ll then need to use your MC number to complete the license application process.
Step Four: Secure a Surety Bond
The FMCSA demands that all broker applicants must have a surety bond to get a license. And there are many FMCSA rules and regulations associated with having a surety bond. The required amount of a surety bond for US freight brokers is $75,000. But do not assume that a new broker has to raise money alone. You have the option of working with a surety company. The surety company can put up a bond for you. All a new broker has to do in exchange is provide a small premium. Unless rules get broker, no one will have to pay anything else.
It’s crucial that a new broker not break the terms of the bond. If that happens, the broker can get sued up to the limits of a new bond. The surety company would then pay the claim. But the broker would have to reimburse the surety company. And the reimbursement would cost a lot of money. This is an example of why a broker must follow all FMCSA rules and regulations.
Step Five: Find a Process Agent
A broker of freight must have a process agent in each state with written contracts. Say that a legal issue takes place that involves your business. The process agent is a person who will accept court papers that get served to you. There are freight brokers that have individual agents within every state. But other brokers of freight decide to choose one national company. This way, the company can provide process agent services all across the country at once.
So, how do you declare who you select as your process agents? You’ll need to file a BOC-3 form through the FMCSA. Please contact Moving Authority if you need help doing this. Our FMCSA registrations services can help you file any form, including the BOC-3. Plus, we can go process agent by process agent for any new broker of freight. This way, you can find the process agent that’s right for you and your new business.
Step Six: Complete FMCSA Registration Through the URS (Unified Registration System)
You’re almost there. This is the final step toward securing your license to broker freight. You now must register with the FMCSA through URS. This refers to the FMCSA Unified Registration System. That system will combine all needed forms into one single online application form. This way, you can complete registration with the FMCSA to get your license.
Once again, please call Moving Authority if you need help filing under the FMCSA URS website. Once you complete URS registration, the FMCSA will grant you with authority. In this case, you now have a license to broker freight across the country. The key is to make sure you understand regulations in each state that you do business in.
Contact Us Today To Get Your License for Brokering Freight
Ready to get your license and start brokering freight all across the country? If so, the Moving Authority team is here to assist. We can help you out with every step on this page. From filing FMCSA forms to finding the right BOC-3 process agents. All you've got to do is give us a call at any time. One of our freight experts can put you on the right track and help you get your license. Our experts look forward to helping you get your license for brokering freight ASAP.