How to Become a Freight Broker: Authority, BOC-3 and the $75,000 Bond
Broker authority takes a USDOT number, a $300 application, a process agent and $75,000 in financial security. Rules adopted in 2023 now let FMCSA suspend brokers whose bond is drawn down.
To become a freight broker, a company needs property broker operating authority from FMCSA, a BOC-3 process agent filing and $75,000 in financial security on file as a BMC-84 surety bond or BMC-85 trust fund. As of November 2026, new applicants register in FMCSA’s Motus system and pay $300 for broker authority, which becomes active after a 10-day protest period.
Who needs broker authority?
Anyone who, for compensation, arranges truck transportation of property in interstate commerce for others, without hauling it, needs broker authority under 49 U.S.C. 13904. That includes companies that take a load from a shipper and hand it to a carrier, and carriers that pass loads they cannot haul to other carriers for a fee.
There are exceptions and look-alikes:
- A bona fide agent who works for a carrier or broker under a contract and books freight in that company’s name does not need separate authority.
- A carrier that hauls a load with its own trucks or trucks leased to it is acting as a carrier, not a broker.
- A dispatcher who arranges loads for carriers can cross into brokering depending on what they do, for example if they take payment from shippers or hold themselves out as arranging transportation.
Brokering without authority exposes a company to federal civil penalties and liability for all valid claims from injured parties.
What are the steps to get broker authority?
- Set up the business. Choose a legal structure, get an EIN from the IRS and keep the legal name identical on every filing.
- Open Motus. Create a Login.gov account and complete identity verification for the company official in Motus, FMCSA’s registration system.
- Apply for a USDOT number and property broker authority. Pay the $300 fee per type of authority. The broker application, formerly Form OP-1, is completed in Motus; FMCSA said applicants should expect at least eight business days for initial review, longer if flagged for vetting.
- File the BOC-3. A process agent company files Form BOC-3 naming an agent for service of legal papers in every state where you operate. Motus did not change the BOC-3 process.
- Obtain financial security. A surety company files a BMC-84 bond, or a financial institution files a BMC-85 trust agreement, for $75,000.
- Wait out the protest period. FMCSA publishes the application in the FMCSA Register and anyone may protest within 10 days.
- Confirm active status. Authority is granted once the protest period ends and the BOC-3 and bond or trust are on record. Check status before booking freight.
- Register for UCR and pay the annual fee. Brokers with no trucks pay the lowest bracket, $55 for 2027. See UCR registration.
Motus replaced the old Unified Registration System in 2026. FMCSA kept MC numbers when Motus Phase II launched, so new brokers still receive an MC number with their authority. The process is laid out in FMCSA’s Federal Register notice on Motus.
What is the difference between a BMC-84 bond and a BMC-85 trust?
| BMC-84 surety bond | BMC-85 trust fund | |
|---|---|---|
| Amount | $75,000 | $75,000 |
| Who provides it | A surety company | A financial institution acting as trustee |
| What the broker pays | An annual premium set by the surety, based on credit and experience | The full $75,000 in assets, plus trustee fees |
| Acceptable assets | Not applicable | Cash, irrevocable letters of credit from a federally insured depository institution, and Treasury bonds |
The asset limits for BMC-85 trusts, and the removal of loan and finance companies as eligible trustees, took effect January 16, 2026 under FMCSA’s 2023 broker and freight forwarder financial responsibility rule. Trust assets must be convertible to cash within 7 calendar days (49 CFR 387.307).
What changed with the broker financial responsibility rule?
The rule, published November 16, 2023, gives carriers and shippers more protection when a broker does not pay. Its main provisions, with compliance dates in January 2025 and January 2026:
- If a broker’s available security falls below $75,000, for example after a claim is paid with the broker’s consent, a claim goes unanswered, or a judgment is paid, the surety or trustee must notify FMCSA within 2 business days.
- FMCSA then gives the broker 7 business days to restore the full amount before suspending its authority.
- A surety or trustee that finds a broker in financial failure must start cancellation and notify FMCSA, which posts the notice in the FMCSA Register. The bond or trust must then accept claims for 60 calendar days.
- FMCSA can suspend sureties and trustees that do not follow the rules.
For carriers checking a broker, these notices are public. Our guide on how to check a freight broker shows where to look.
What records must a broker keep?
Under 49 CFR 371.3, a broker must keep a record of each transaction for 3 years, including the consignor’s name and address, the originating carrier’s name, address and registration number, the bill of lading or freight bill number, the broker’s compensation and who paid it, and any freight charges collected with the date the carrier was paid. Each party to a transaction has the right to review the record. Brokers also need contract terms with carriers, usually a broker-carrier agreement and a rate confirmation for each load.
Bottom line
The federal paperwork is the short part of starting a brokerage; carrier vetting, credit with shippers and cash to pay carriers before shippers pay you take longer. Under the 2026 trust rules, a broker that lets claims pile up can have its authority suspended within days of a drawdown, so a broker has to watch the bond balance after every claim.
FAQ
How much does it cost to get broker authority?
FMCSA charges $300 for broker authority as of November 2026. Add the BOC-3 filing fee, the annual bond premium or the $75,000 trust deposit, and the UCR fee.
Do I need a license to be a freight broker agent?
Not if you work under a licensed broker’s authority and book loads in that broker’s name. Running loads under your own company name requires your own authority and bond.
How long does it take to get broker authority?
FMCSA says to expect at least eight business days for initial review in Motus, plus the 10-day protest period, and authority becomes active only after the BOC-3 and bond or trust are on file.
Can a trucking company broker loads under its carrier authority?
No. Carrier authority allows hauling, not brokering. A carrier that brokers loads to other carriers needs separate broker authority and its own $75,000 bond or trust.
