What will it cost to get the Freight Broker Authority and Process Agent/BOC-3?
Total Cost: $895
Includes: Registration - Broker Authority -DOT/MC# - Process Agent - Filing Fees.
You will have to get a $75,000 Bond or Trust also.
Why do you need a freight broker surety bond?
You have to have a BOND or TRUST in the amount of $75,000 in order to be a Freight Broker. This is to protect your to protect the shippers and motor carriers. If you don’t follow FMCSA rules, claims can be filed against your Bond or Trust which you are responsible to pay.
Note: You can get a BOND usually cost between $1,000 to $3,500 a year - or - you have to put $75,000 in a Bank Trust.
Why do I have to have a Bond? Well if for some reason you don’t pay the motor carriers or in a timely manner, a claim can be made against. This way the carrier receives their payment for services rendered.
Formerly known as an ICC bond, the freight broker bond is still sometimes referred to as a transportation broker bond or property broker bond. A process agent is a representative upon whom court papers may be served in any proceeding brought against a motor carrier, broker, or freight forwarder.
If you need help with starting your brokerage business go to: (www.FreightBrokerAgentSchool.com).
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