How To Become a Truck Broker

Have you ever thought about expanding your trucking business? Do you want to know how to become a truck broker?

For the filing side of it, see our walkthrough of freight broker authority and the FMCSA requirements.

Wondering if dispatching is the cheaper first step? Read our comparison of freight brokers and dispatchers.

Once your authority is in place, the next job is filling the pipeline — here is how to find freight brokerage customers.

Already hauling under your own authority? See how owner-operators expand a trucking revenue stream by adding brokerage authority.

With the new year starting in a few weeks, there are some established trucking companies who see a niche to fill in their business – to become a truck broker (also called a freight broker.)

How to become a truck broker: a truck broker (also called a freight broker) arranges freight between shippers and carriers instead of hauling it. To start, form a business such as an LLC, secure the $75,000 FMCSA bond with form BMC-84, pay the $300 broker application fee (processing takes 4 to 6 weeks), and set up brokerage software to keep loads and bills organized.

How to Start

Before you investigate how to become a truck broker, it’s important to understand the trucking and logistics industry if you’re interested. If you’re already in a trucking business, then you’ve got a working knowledge. If you’re new to the industry and looking at training in a college or vocational school, consider getting a job at a trucking brokerage company before paying the tuition. (Why not get paid for the training instead of paying for it?)

When a trucking company wants to expand but maybe money is too tight, becoming a truck broker might be an option. But there are a few steps to take first.

Get the money together

All start-ups cost money. In this case, you should consider these expenses.

1. Create your own business LLC or incorporate. We’re not going to advise for one or the other – you can consult with a business attorney for what’s best for you. In the state of Ohio, creating an LLC is an online process that isn’t very expensive, but you’ll want to be sure you have yourself covered. An LLC might be a good first step. If you don’t know enough, ask an expert. If you’re exploring how to become a truck broker, consider contacting the Small Business Administration or SCORE.org, an organization that counsels small businesses for free with retired executives from a wide variety of fields – including logistics.
2. Investigate the bond and insurance policies you’ll need. The FMCSA requires a bond of $75,000 when you register your truck brokerage with the form BMC-84. (You’ll find plenty of bond companies if you do a search online for “FMCSA bond for freight brokers.”) You might also look to any state-specific laws regarding insurance policies that you need.
3. You’ll need freight brokerage software such as TruckingOffice Brokerage software. Get organized and stay organized from the start of your truck brokering. It’s the only way you’ll survive.

Take Care of the Paperwork

The government always requires us to fill out the paperwork, don’t they? If you want to know how to become a truck broker, you have to handle the paperwork. The application for a truck or freight broker costs $300 and will take 4 to 6 weeks to process.

There’s a lot more to how to become a truck broker. These are just the first steps.

TruckingOffice Brokerage Software

If you’re serious about getting into truck freight brokerage, you need the right tools. We’re not talking about loading the trucks yourself – but you need a way to keep those loads organized, to keep the data current, and to make sure the bills are paid (yours and theirs.) So be careful as you look for trucking brokerage software. TruckingOffice had known of brokers using our trucking company management software for their brokerage management. But we’ve refined our system to specifically work with freight brokers. If you know TruckingOffice software, you’ll be ready to go in no time. And even if you don’t know our trucking software package, you’ll catch on quickly because TruckingOffice makes it easy!

You can check out our software today at TruckingOffice Brokerage.

Truck Broker FAQ

What does it take to become a truck broker?

Start by understanding the trucking and logistics industry, then create a business entity such as an LLC, investigate the bond and insurance policies you will need, get freight brokerage software, and complete the FMCSA paperwork. Getting a job at a trucking brokerage company first is one way to learn the business while being paid.

How much is the FMCSA bond for a freight broker?

The FMCSA requires a bond of $75,000 when you register your truck brokerage with form BMC-84. Bond companies are easy to find by searching online for an FMCSA bond for freight brokers. You should also check any state-specific insurance requirements.

How much does a freight broker application cost and how long does it take?

The application for a truck or freight broker costs $300 and takes 4 to 6 weeks to process.

Can a trucking company become a truck broker?

Yes. Established trucking companies often see brokerage as a niche to fill in their business, and if you already run a trucking business you have a working knowledge of the industry. Becoming a broker can be an option when money is too tight to expand in other ways, but you still need to take the startup steps first.

What software do truck brokers need?

Brokers need software to keep loads organized, keep data current, and make sure the bills are paid, both theirs and their customers. TruckingOffice Brokerage software is built specifically to work with freight brokers.