Transportation · LLC guide · updated
How to start an LLC for a freight brokerage
A broker never touches the freight, but it signs contracts with both shippers and carriers and owes money to both. When a carrier is not paid or a load goes missing, the claim goes to the broker. FMCSA requires a $75,000 bond in the broker's name, and the LLC is the name that bond, the authority and the contracts all share.
Our registered agent is optional: $74.25 a year, the same at renewal. Questions first? Ray or Vinny picks up at (954) 470-8356.
- EIN
- USDOT number
- Broker authority
- BMC-84 bond
- BOC-3
Freight Brokerage businesses in the U.S.
Source: U.S. Census Bureau, County Business Patterns 2022 (NAICS 488510), the latest U.S. totals.
Why freight brokerage owners form an LLC
Unpaid carrier claims
If a shipper pays late and you cannot pay the carrier, the carrier can claim against your bond and sue the brokerage.
Negligent selection
Brokers have been sued after crashes for hiring an unsafe carrier. Vetting carriers and contingent auto liability coverage matter as much as the LLC.
Contract liability
Broker-shipper and broker-carrier agreements should be signed by the LLC, with your title, never personally.
An LLC keeps the company's debts and claims away from your personal assets when you run it as its own business: its own bank account, contracts signed in its name, and no mixing of money. It does not cover your own negligence, and lenders often ask for a personal guarantee. Insurance comes first.
Licenses and registrations for a freight brokerage
Federal items link to the agency's own page. State and local rules vary, so pick your state at the top for your state's business portal. Tick items off as you go; the list remembers your progress on this device.
- We do thisForm the LLC and get its EINAlmost every registration above asks for the company's legal name and EIN, so this comes first. We file the LLC with your state for $123.75 plus the state fee, and can get the EIN for $41.25; the IRS also issues it free online.
Insurance and taxes to plan for
Insurance
- Contingent auto liability
Covers the brokerage if a carrier you hired has a crash and its own insurance fails or falls short.
- Contingent cargo
Pays a cargo claim when the carrier's cargo policy will not.
- Errors and omissions
Covers mistakes in paperwork, billing and load handling.
Taxes
- Gross receipts vs. net revenue
Your books will show the full amount shippers pay you, with carrier payments as cost of revenue. Your margin is the real income; set up the chart of accounts that way from the start.
- 1099s to carriers
Payments to carriers that are not corporations may need a Form 1099-NEC; the threshold rises from $600 to $2,000 for payments made in 2026. IRS / agency page
The bond or trust protects carriers and shippers from the brokerage, so it has to be in the LLC's name. If you post cash for a BMC-85 trust, move it into the company as a capital contribution and record it in the operating agreement.
Forming the LLC itself: 7 steps in every state
- 1. Check the name
- 2. Name a registered agent
- 3. File with the state
- 4. Sign an operating agreement
- 5. Get an EIN
- 6. Open a bank account
- 7. Keep it in good standing
The filing office, fee and yearly report change by state. Open your state's step-by-step guide.
What it costs to form a freight brokerage LLC
| Cost | File it yourself | With Vermilion Vitez |
|---|---|---|
| State filing fee (paid to the state) | $35 to $520 | $35 to $520 |
| Filing service, operating agreement included | $0 | $123.75 |
| EIN from the IRS | $0 | $0 yourself, or $41.25 if we get it |
| Registered agent, per year (optional) | $0 if you serve yourself | $74.25 |
State fees as charged at our checkout. Industry licenses, permits, bonds and insurance above are separate and set by each agency. Checkout shows the card processing fee before you pay.
Frequently asked questions
Do I need my own trucks to be a freight broker?
No. A broker arranges transport and never takes possession of the freight. If you also want to haul loads yourself you need separate carrier authority.
How much does it cost to start a freight brokerage LLC?
Your state's LLC filing fee, the $300 FMCSA filing fee for broker authority, the yearly premium on a $75,000 surety bond (priced on your credit) or $75,000 in a trust, UCR, and your BOC-3 filing. Insurance comes on top.
Can a freight agent work under someone else's authority?
Yes. Freight agents work under a licensed broker's authority and bond and are paid a share of the margin. Many agents form an LLC to receive those commissions.
What changed for brokers in 2026?
FMCSA's broker and freight forwarder financial responsibility rule took effect January 16, 2026. It tightened what counts as an acceptable trust, requires the surety or trustee to report a drawdown quickly, and suspends authority when the $75,000 is not kept whole.
How much does it cost to form an LLC for a freight brokerage?
Your state's filing fee ($35 to $520 depending on the state) plus $123.75 if we file it, with the operating agreement included. Industry licenses, bonds and insurance are extra and set by each agency.
Is this page legal or tax advice for my freight brokerage?
No. It summarizes public rules in general terms, with links to the agencies that set them. For your situation, talk to a licensed attorney or CPA, or book a free call with us.
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Ready when you are
Have us file your Freight Brokerage LLC
$123.75 plus your state's filing fee, with the operating agreement included. Checkout shows the full total, card processing fee and all, before you pay.
Rather talk first? Call Ray or Vinny at (954) 470-8356.