How to Get Your Freight Broker Authority, Even If You Already Have an MC Number

If you’re currently operating as a carrier but looking to expand into brokering freight, you’re not alone. Many owner-operators and small fleet owners eventually explore the freight broker side to increase income without running more trucks. But the process to get your broker authority looks a little different than simply getting an MC number.

In this blog, we’ll break down how to get your freight broker authority step-by-step, and what to do if you already have your MC number as a carrier.

What Is Broker Authority?

Broker authority is permission granted by the Federal Motor Carrier Safety Administration (FMCSA) that allows a person or company to arrange transportation of freight for compensation. Unlike carriers, brokers do not take possession of the freight, they connect shippers with qualified carriers.

To broker freight legally, you need an MC number for brokerage (MC-#) that is distinct from your carrier MC number.

Can You Be Both a Carrier and a Broker?

Yes, you can operate as both a carrier and a broker, but each requires its own authority and registration. You’ll need to apply separately for broker authority, even if you already have your MC number for your trucking company.

Important: The FMCSA allows a single legal entity to hold both authorities, but you must operate them separately. That means separate recordkeeping, separate contracts, and full transparency with customers.

Step-by-Step: How to Get Your Broker Authority

1. Register Your Business Entity

Make sure your business is formed with an LLC or corporation and has:

• An EIN from the IRS
• A business bank account
• A professional business address (not a P.O. Box)

If you already have a trucking company, you can use the same legal entity but may want to operate your broker business under a separate DBA to keep things clean.

2. Apply for a New MC Number for Brokerage

Go to the FMCSA’s Unified Registration System (URS) and apply for Broker of Property authority.

Even if you already have an MC for your carrier authority, you’ll need a separate broker MC number.

• Choose: “Broker of Property (except Household Goods)”
• Application Fee: $300
  

3. Designate a Process Agent (BOC-3)

A BOC-3 is a legal document that assigns a process agent in each state who can accept legal documents on your behalf. You can get this through third-party companies for around $25–$50.

You must file the BOC-3 before your authority becomes active.

4. Secure a Surety Bond or Trust Fund

To broker freight, you must carry a $75,000 surety bond (BMC-84) or establish a $75,000 trust fund (BMC-85).

Most brokers opt for the BMC-84, which is easier to obtain and typically costs $900–$2,000/year, depending on your credit.

You’ll need to file this bond with the FMCSA.

5. Wait for FMCSA Approval

After submitting all documents and paying your fee, your broker authority will be granted, but not immediately. The FMCSA requires a 10-day vetting period after your application is submitted and your public notice is posted. Make sure your BOC-3 and bond are filed during this time to avoid delays.

After You’re Approved: Next Steps

Once you receive your broker authority, here’s what you should do:

• Set up a TMS (Transportation Management System) to manage loads
• Create carrier agreements and shipper contracts
• Set up a system for invoicing and collections
• Purchase contingent cargo and general liability insurance (optional but recommended)
• Build a carrier network and vet all carriers for insurance, safety rating, and MC status

Tips for Existing Carriers Adding Broker Authority

If you already have your MC as a carrier:

• You do not need to form a new LLC unless you want full separation between broker and carrier operations
• Be clear in your operations, when acting as a broker, do not touch the freight
• Some carriers open a second LLC for brokerage to avoid co-mingling assets, especially when scaling.

Getting your freight broker authority opens up new streams of revenue without needing more trucks, drivers, or fuel. Whether you’re brand new or already have your MC as a carrier, the process is straightforward if you follow each step carefully.

Want help filing your broker authority or BOC-3? Reach out, we can help you get your brokerage up and running the right way.