Freight Broker Start-up Costs - Part I

Here is a breakdown of what you can expect when getting started.

There are four separate items required for the broker authority:

1. Motor carrier number (MC#)
2. Evidence of a $75K surety bond or trust fund
3. BOC-3 permit
4. Unified Carrier Registration (UCR)

The cost for the MC#, the BOC-3 permit and the UCR will run about $405. The cost for the surety bond or trust fund depends upon which vendor you select and the type of program. In general, expect to pay either $3,500 up front for the whole year or $995 every three months for the bond or fund.

The cheapest way is not necessarily the best. For example, your bond or fund provider should have experience in protecting against frivilous claims.

Of course, your bond or fund could be invaded if you fail to pay any trucks. This, in fact, is the purpose of having funds set aside in the first place.

Nevertheless, a good bond or fund provider knows transportation law and will throw out a frivilous claim quicker than you can say flap jack.

So, you are looking at about $1,400 to get started for your broker authority. Again, don't jump at the low price.

In the next post, I will show you how to get started for about $1,400 if you choose to make quarterly payments on the bond or fund. I will also talk about your cushion of money needed to pay trucks on time and what you can do if you don't have a cushion of money.