Freight brokers must obtain a license by the Federal Motor Carrier Safety Administration (FMCSA). The license, known as Motor Carrier Operating Authority or MC Authority, allows people to officially operate as a freight broker.
Freight brokers connect carriers and shippers to play an imperative role in transporting goods from one place to another. This includes connecting establishments needing to transport goods, negotiating the best possible delivery schedules and shipping rates, recordkeeping to facilitate tracking of freight, and ensuring compliance with shipping regulations.
What is the Licensing Process?
- Decide if you will operate as an individual/sole proprietor, corporation, or partnership.
- Download and fill out the freight broker application form available on the FMCSA website.
- Pay the application fee.
- When FMCSA approves your application, receive your MC authority. This is granted ten days following the FMCSA posting your registration on its website.
- Purchase a BMC-84 freight broker bond in the amount of $75,000
- Choose a process agent in every state you have an office. This person will be served court papers in the event your business is brought to court.
- Complete the Unified Carrier Registration process
Once these steps are completed, you are ready to do business! To fulfill the surety bond requirement listed above, it is vital to purchase the BMC-84 freight broker bond from an insurance company you can trust. A BMC-84 bond is a legally binding contract between the FMCSA, the freight broker, and the surety company that underwrites and distributes the bond. With the surety bond from a reliable insurance company, you are guaranteeing your customers you will conduct business within all applicable laws and regulations. You can obtain your freight bond quote in minutes with Colonial Surety Company.
License and Permit Bond
We make choosing the right bond for your business as easy as it can be. Colonial Surety Company allows you to purchase your affordable surety bond online in minutes. Contact us today to obtain your bond or discuss your BMC-84 bonding needs with our bond administrators.