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How do I get a Freight Broker License?
Nicole Madison
Nicole Madison
A freight broker is an entity that serves as a middleman, setting up services between people or companies that need packages shipped and companies that provide shipping services. Essentially, they help trucking companies fill their trucks and earn money doing so, and they help those with items to arrange shipping, fees, and terms. A broker can be an individual or a company, but either way, a freight broker license is required in the United States; requirements and procedures may differ in other countries.
Education is often the first step in acquiring a freight broker license. Many prospective freight brokers enroll in training programs to learn what they need to know for becoming licensed and operating as a freight broker. Some of these training courses are available online. Interestingly, formal education isn’t required to obtain a license. A person could learn what he needs to know by working under a licensed freight broker or even by reading books and manuals.
After gaining solid knowledge of the ins and out of freight brokering, the next step is applying for a license with the Federal Motor Carrier Safety Administration (FMCSA). A prospective freight broker can do this by filing an Application for Motor Property Carrier and Broker Authority form and paying the accompanying fee; this application is available through the FMCSA website. Once this form is completed, submitted, and paid for, the prospective broker will have to wait to have a Motor Carrier Number assigned to him. He cannot complete the rest of freight broker license application process without this number.
After receiving his Motor Carrier Number, the prospective freight broker’s next step is obtaining a $10,000 US Dollars (USD) surety bond for his business. He will have to file proof of bond with the FMCSA. Next, the freight broker has to choose process agents for each state in which he plans to do business, filing a Designation of Process Agent Form and paying the required fee for each agent. The process agent is set up to assist the freight broker in case of legal action in the process agent's state.
Once these steps are completed, the prospective freight broker simply has to wait for FMCSA processing and approval. This may take four to six weeks to complete. When the applying individual receives his freight broker license, called a Broker Authority, he may legally start his business
Nicole Madison
Nicole’s thirst for knowledge inspired her to become a WiseGEEK writer, and she focuses primarily on topics such as homeschooling, parenting, health, science, and business. When not writing or spending time with her four children, Nicole enjoys reading, camping, and going to the beach.
Learn more...
Nicole Madison
Nicole’s thirst for knowledge inspired her to become a WiseGEEK writer, and she focuses primarily on topics such as homeschooling, parenting, health, science, and business. When not writing or spending time with her four children, Nicole enjoys reading, camping, and going to the beach.
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AS FEATURED ON:
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![Aspiring freight brokers may enroll in training programs to gain knowledge on the business.]()
By: Lisa F. YoungAspiring freight brokers may enroll in training programs to gain knowledge on the business. -
![A freight broker may help companies provide shipping services.]()
By: ShestakoffA freight broker may help companies provide shipping services. -
![Some freight broker jobs are entirely focused upon sea transport.]()
By: leeyiutungSome freight broker jobs are entirely focused upon sea transport.
Discussion Comments
I want to become a freight broker. You guys have probably already done your research and I was wanting to see what you guys have found for schooling.
"Double brokering" must be a taboo subject since I can't even get FMSHA to respond.
@BlogLove – Of course. You can search for freight broker jobs on the Internet – just be sure that the company you apply with is hiring freight brokers in your state. You can also search for freight brokers in your local yellow pages and contact companies that might be hiring freight brokers in your area.
So once I’ve gone through all the steps and gotten my freight broker license, can I get a job with a company that hires freight brokers rather than just starting my own business?
Thank you so much for this article! I'm so happy to find out I don't have to go to a formal school to gain the required knowledge to become a freight broker! I can easily learn online, or even from reading books, I just don't have the money to go to a big school.
It doesn't seem like the freight broker license requirements will be that hard to meet. I can't wait to get my business going!
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