The legal costs/fees and office expenses for starting a freight brokerage. Find out if you can afford to start a freight brokerage. Many Freight Agents aspire to become freight brokers but never take the entrepreneurial leap of faith. I'm here to tell you that it's not a far of a jump at all! If you have questions about Freight Broker & Freight Agent Training visit LogisticsAcademy.org

1. Starting a Freight Brokerage:
Initial/Monthly/Annual Legal Fees and Office
Expenses to expect
Online Freight Broker & Freight Agent Training
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2. LogisticsAcademy.org
Logistics Academy is an online Freight Broker Training School. Many
people want to know if cost is a barrier to entry for them. A Freight
Brokerage is a very inexpensive business to start and it is a great
opportunity for those interested in working from home.
If you have any questions visit LogisticsAcademy.org on LinkedIn,
YouTube, or Google+!

3. The Initial Legal Costs
Every brokerage is going to have its own unique set up. Here are some
of the expenses that a typical modern day freight broker should expect
to incur right off the bat. These expenses are a great example of why
you need to hit the ground running when you start your brokerage,
start ahead of the curve with our Freight Broker Training Course.

4. Obtaining Your General Business License
Depending on your state guidelines: $150 - $300

5. Federal Tax ID Number: $0

6. FMCSA Form OP-1 Application
$300 non-refundable filing fee

7. BMC-84 Surety
Bond
$1,100 – $2,250 annually. Brokers with a rate over $2,000 are usually
permitted to pay monthly, quarterly, or bi-annually. Your other option
is the $75,000 BMC-85 trust fund.

8. Contingent Cargo Insurance
For a standard policy that covers
$100,000 worth of loss or
damage, expect a rate of $1,200
– $1,500 per year. These
numbers are calculated with a
$1,000 deductible in mind,
please note that rates may
change based on your deductible
and other factors.

9. Form BOC-3
Free if you can fill it out
alone but you might find
that it’s worth the $20-
$50 to work with
someone. You can find a
contact for you in your
state on the FMCSA
Website.

10. Unified Carrier Registration (UCR)
The UCR collects $76 annually. You must file by the first of the year.

11. Standard Alpha Carrier Code (SCAC)
$70 application
fee, to stay valid
your code must be
renewed each
year.

12. Total Legal Costs: $3,000 - $4,500
• General Business License: $150 - $300
• Federal Tax ID Number: $0
• FMCSA Form OP-1: $300
• BMC-84 Surety Bond: $1,100 - $2,250 annually
• Contingent Cargo Insurance: $1,200 - $1,500 annually
• Form BOC-3: $20 - $50
• UCR: $76 annually
• SCAC: $70 application fee

13. Office Set Up Costs
The previous “total costs” of course is the total cost of getting your
brokerage up and running initially and your legal expenses for the
entire first year. The required legal costs and fees of a new brokerage
will add up to about $2,450 to $3,900 annually. The total cost did not
factor in the office expenses of a Freight Broker. Here is a list of the
office essentials with some general pricing information.

14. Freight Broker Office Setup
• 2 line Phone System: $50 - $200
• Fax Machine: $60 - $300
• Computer: if you're here… you're probably set!
• High Speed Internet (& phone line provider): ~$200/month
• TMS (software): +$150/month
• Load Board Subscriptions: $140/month
• General Office Supplies: ~$50/month

15. Total Costs
• Initial Legal Fees: $3,000 - $4,500
• Initial Office Expenses: $650 - $1,000
• Monthly Office Expenses: ~$500
• Annual Legal Costs: ~$2,400 - $3,900