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BECOMING A FREIGHT BROKER STEP by STEP

Published on March 3, 2025 by Advantage Logistics, LLC

How to Start a Freight Brokerage Company: A Step-by-Step Guide (Without Losing Your Sanity)

Starting a freight brokerage can be an exciting (and slightly overwhelming) adventure, but if you play it right, you can build a solid business moving loads and making money. Here's your roadmap:

1. Learn the Industry (a.k.a. Don’t Wing It)

Before you start promising shippers you’ll move their freight like a pro, become a pro. Learn about lanes, rates, regulations, and the fine art of not ticking off truckers. If you’re new to logistics, consider taking a freight broker course.

2. Get Your Legal Ducks in a Row

  • Register Your Business – Choose an LLC, S-Corp, or whatever suits your tax situation.
  • Get a USDOT & MC Number – Required by the FMCSA to operate legally.
  • Obtain a $75K Surety Bond – This proves you can pay carriers, even if a customer delays payment.
  • Designate a Process Agent (Form BOC-3) – Basically, a legal rep in every state you operate in.
  • Set Up Business Banking & Insurance – Open a business account and consider liability insurance.

3. Build Relationships (Because It’s All About Who You Know)

Find reliable shippers and carriers before you launch. Start networking on LinkedIn, freight forums, and industry events. Don’t wait until you have your authority to start making connections.

4. Get the Right Tech & Tools

  • Load Boards – DAT, Truckstop, etc., to find carriers and post loads.
  • TMS (Transportation Management System) – Helps you keep track of loads, invoices, and payments.
  • Accounting Software – QuickBooks, or something similar, because money management is key.
  • A Solid Phone & Internet Connection – You’ll be making a lot of calls.

5. Price Your Services Right

Know your market rates, and don’t undercut yourself just to win customers. Shippers love cheap, but carriers hate it. Find the balance where you make money while keeping both sides happy.

6. Get Freight, Move Freight, Get Paid (Repeat!)

  • Start small—focus on a few reliable shippers and lanes.
  • Always vet your carriers (insurance, safety record, etc.).
  • Keep communication clear with both sides to avoid surprises.
  • Invoice promptly and use factoring if you need faster cash flow.

7. Keep Growing (and Avoid Burnout)

  • Hire help when you need it (dispatchers, assistants, or other brokers).
  • Diversify your freight—don’t rely too much on one industry.
  • Keep up with industry trends and adjust your strategy as needed.

Starting a freight brokerage is a mix of hustle, patience, and coffee. Lots of coffee. But if you build strong relationships, price smartly, and keep your operations smooth, you’ll be well on your way to success.

Now, go get those loads moving! 🚛💨