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July 27, 2022

Master Freight Broker MC Numbers: Complete Guide

In the simplest of words, a freight broker MC number is the first step to getting your freight broker authority. If you are a freight broker, it means that you are an individual or a corporation that is involved in the transportation of property which excludes any household goods.

You receive payment for arranging the transportation of the property and you use an authorized motor carrier for this service. As a broker, you do not assume responsibility for the property. You do not take possession of the property either.

If you want to activate your broker authority, you must apply for a broker number which is your MC. You must also have a USDOT number and BOC3 list of process agents. In addition to this, you are also required to enroll in the unified carrier registration program. As an applicant, you must have $75,000 in a surety bond.

Understanding Broker Authority

If you obtain a broker authority license, it is going to allow your company to schedule and hire carriers for the transportation of cargo that belongs to third parties. These are the people who transport the cargo. If you apply for registration and all the information submitted by you checks out, you will receive your freight broker MC number.

Understanding The Various Requirements For Brokers

As a broker, you must register with the federal motor carrier safety administration. This is to handle financial liability coverage. As a broker, you will be required to keep all the information pertaining to financials, administration, and record keeping. You should not represent yourself as a motor carrier. You should not represent yourself as the custodial of the property either.

Types Of Brokers

1. Property Brokers

You will be considered a property broker if you are a sole individual or a singular corporation involved in the business of handling transportation of property. It should not encompass household goods. The transported goods are owned by others. You get paid to transport this property. As a broker, the property is not your responsibility. You are not allowed to have any possession of it either.

2. Household Goods Brokers

A household goods broker is an individual or a partnership company or a corporation that receives payment for the transportation of household goods that belong to third parties. You do not have any responsibility for these goods and you do not take possession of them either. Household goods are all the personal items and property used in a home. You must register as a household goods broker if you want to handle household goods.

Understanding Other Types Of Broker Authority

Primarily, there are two types of authorities that have been listed above. But there are numerous other authorities as well that you might want to obtain depending upon the industry niche you work in. You must choose the right authority and for that, you should assess the type of goods that you want to transport.

US-Based Enterprise Carrier Of International Cargo

It does not pertain to household goods. This applies to companies that ship international cargo. They must have their established headquarters in the US and may be controlled by a Mexican citizen or a resident alien by 55%. Either their cargo should originate from a country that is located outside of the US or the destination of the cargo should be outside of the US.

US-Based Enterprise Carrier Of International Household Goods

It pertains to household goods only. The rule is that a headquarters in the US and the rest are the same as mentioned above. The goods are categorized as household goods are personal items used in homes. Items shipped from factories and purchased for use in homes come under this umbrella. The homeowner is responsible for paying for the transportation charges.

  • Freight Forwarder FF Number
  • Non-North America-Domiciled Motor Carrier
  • Mexican Certificate Of Registration For Foreign Motor Carriers And Foreign Motor Private Carriers

Applying For Your Freight Broker Authority

The ideal and highly preferred way is to go to your third-party administrator or consortium. It is a practical way to apply for your freight broker authority.

1. You Must Apply For Your USDOT Number First

You will need this number for several other applications as well.

2. Register With The FMCSA

You need to register with the federal motor carrier safety administration as well. You must fill out the OP-1 form to receive your MC number or FF number. The filing fee is $300.

3. You Can Apply For It In Three Ways Such As:

Online: To apply for it online, you must have a Credit Card. This method is faster than any other method.

Via Mail: Complete your OP-1 form and mail it to the address given on the form. Include the payment along with it.

By Phone: You can also request the form by calling on their toll-free number. It will get mailed to you soon and all you have to do is complete it and return it through the same method along with the payment. It can take up to 4 weeks for the process to complete.

4. Obtain A Surety Bond

The next step is to obtain a surety bond with a coverage of up to $75,000. This is going to protect you and your customers in the event that a shipper is unable to pay for your shipment. In such a situation, you as the freight broker will be responsible for the cost.

5. Designating Process Agents

You should designate a process agent within 90 days of receiving your MC or FF number.

6. Receiving Your License

It is time to receive your license. However, in the end, it is advisable and essential to note that you must get in touch with your third-party administrator or consortium to help you figure out the best and the fastest way to get your freight broker MC number or FF number. It is a safe and reliable way to stay DOT compliant throughout the year.

FAQ

What Happens If You Fail a DOT Inspection?

If the vehicle or driver is deemed unsafe, they may be placed out of service, meaning the vehicle cannot operate until all violations are properly corrected.

Who decides which level of inspection to perform?

Both the Commercial Vehicle Safety Alliance (CVSA) and the Federal Motor Carrier Safety Administration have a part in DOT inspection levels. The CVSA develops the criteria and sets the procedures for every inspection level. The FMCSA establishes overall regulations and determines which vehicles must be inspected.

How often do DOT inspections happen?

DOT inspections can happen at any time. They most commonly happen during roadside stops and weigh stations. Carriers with higher risk, poor safety records, or hazardous material may be inspected more frequently.

What documents are required during an inspection?

Documents required during an inspection include but may not be limited to:

  • State driver’s license or commercial driver’s license
  • Medical examiner’s certificate
  • Record of duty status
  • Vehicle registrations
  • Periodic inspections document for all vehicles being operated
  • Shipping papers or bills of lading
  • Information for hazardous materials being transported
  • Proof of insurance

What are common DOT inspection violations?

According to the FMCSA, the 5 most cited roadside violations are:

  1. False Report of Driver’s Record of Duty Status: log falsification providing inaccurate or intentionally altered duty-status information.
  2. No Record of Duty Status (ELD Required): using a commercial vehicle without the required electronic logging device or valid time records.
  3. Inoperable Required Lamp: crucial lights (headlights, brake lights, turn signals, etc.) are not functioning properly.
  4. Operating a Commercial Motor Vehicle Without a Commercial Driver’s License (CDL)
  5. Operating a Commercial Motor Vehicle Without Proof of a Periodic Inspection: failure to meet FMCSA the maintenance standards of a required annual inspection.

Why is updating VMT important for compliance?

VMT is tracked to determine fuel tax obligations (Vehicle Miles Traveled Tax) used for road maintenance and improvements. Trucking companies must keep accurate records of VMT to ensure they pay the correct amount of taxes.

How often should VMT be updated?

For motor carriers VMT must be updated every two years along with the MCS-150 form for the Biennial Update.

Can VMT be tracked automatically with technology?

Yes, Electronic Legging Devices (ELDs), Fleet Management Apps, and Mileage Tracking Software are all technological advancements that can simplify the process of VMT tracking.

How does VMT affect taxes and fuel reporting?

Accurate VMT records help document mileage for business-related tax deductions, ensuring compliance with IRS regulations. It also supports fuel tax reporting by tracking the miles each vehicle travels in different jurisdictions, which is essential for state and federal fuel tax calculations. Proper tracking reduces errors, prevents penalties, and provides a clear record of operational costs.

How do I know when my Biennial Update is due?

  • Your filing schedule depends on the last two digits of your USDOT number. The last digit corresponds with what month the form needs to be filed in. January is 1, February is 2, March is 3, etc. The next to last digit determines the year (odd-numbered year or even numbered year). For example, DOT number 1234567 files their biennial update in July (7) of every even year (6). Contact us today to see if you’re due.

Does the Biennial Update cost money to file?

While you can file your Biennial Update yourself for no cost through FMCSA. The process can often be confusing and time-consuming. Our team can handle your filing for you, simplifying the process for you.

Do intrastate carriers need to file the update?

Yes, even if carriers stay within state lines, a biennial update is still needed for their USDOT number.

What happens if I miss my filing deadline?

  • Failure to complete biennial update to FMCSA can be subject to fines with a maximum penalty of $10,000. If your update is past due, you can still file it to restore your compliance status. Contact us today to file your form! https://dotcompliancegroup.com/bu-update/ 

What are the new FMCSA rules in 2025?

  1. Civil Penalty Amount Increases
  2. Drug & Alcohol Clearinghouse Becomes Exclusive Source for checking driver history.
  3. ELD Technology Required
  4. SMS (Safety Measurement System) Modernization
  5. Crash Preventability Determination Program Expanded

When do the 2025 FMCSA regulations take effect?

The confirmed dates these regulations take effect is May 30, June 23, October 1, 2025.

How can trucking companies prepare for these changes?

Regularly reviewing your Safety Measurement System (SMS) scores and maintaining personal checklists for inspections, driver qualification files, and drug and alcohol testing helps catch issues before they affect audits. Partnering with DOT Compliance Group streamlines filings, reporting, and ongoing monitoring, taking the guesswork out of FMCSA regulations and keeping your operation audit-ready year-round.

What Triggers a DOT Compliance Review?

A DOT compliance review is triggered when FMCSA wants to ensure a carrier is following safety regulations. Common triggers include high SMS safety scores, a history of crashes or violations, and previous noncompliance. Staying proactive with accurate records, driver files, and regular internal audits helps reduce the likelihood of a review.

Where can I get help with FMCSA filings?

DOT Compliance Group can assist with any help or questions you may have about FMCSA filings. Call 972-476-9962.

How long are violations kept on record?

According to the Clearinghouse rules, drug and alcohol violations remain in the FMCSA Clearinghouse for five years, provided all requirements (such as completing the return‑to‑duty process) have been met before that period ends.

What if an employer makes a mistake in reporting?

In practice, correcting an employer reporting error typically involves identifying the mistake in the database and then submitting a request for correction through the Clearinghouse portal or FMCSA procedures, so the record reflects accurate information. 

What are the penalties for non-compliance?

FMCSA rules allow civil penalties for non‑compliance, and separate authorities note that employers who fail to meet Clearinghouse requirements may face civil fines or criminal penalties under federal regulations.

Do trucking companies check the Clearinghouse?

Yes — trucking companies check the Clearinghouse as part of their hiring and compliance process. The FMCSA Clearinghouse is designed so employers can search a driver’s drug and alcohol violation records before permitting them to operate a commercial vehicle. Employers are required to conduct these queries for both prospective and current drivers as part of compliance.

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