Transportation & Logistics

How to Start a Logistics Company

To start a logistics company you need a freight broker license (FF number), a $75,000 surety bond, a TMS software platform, and a network of carriers and shippers. Most brokers launch in 2–4 months with $7,500–$25,000 in startup capital.

Startup cost: $7,500 – $25,000 Timeline: 2–4 months 8 steps

Step-by-Step Guide

1

Register your business entity

Form an LLC or corporation and obtain an EIN from the IRS for tax and banking purposes.

2

Apply for freight broker authority

Register with the FMCSA for a Motor Property Broker license (FF number), which legally allows you to arrange freight transportation.

3

Obtain a $75,000 surety bond

Purchase a BMC-84 surety bond or trust fund agreement, which guarantees you will pay carriers for their services.

4

Get a BOC-3 process agent

Designate a process agent in each state where you operate, required by FMCSA before your authority becomes active.

5

Invest in TMS software

Choose a transportation management system to track loads, manage carrier relationships, and automate billing and dispatch.

6

Build your carrier network

Recruit vetted carriers through load boards, industry contacts, and MC number verification to ensure reliable capacity.

7

Acquire shipper clients

Cold-call and network with manufacturers, distributors, and retailers to win freight contracts and build a book of business.

8

Set up accounting and factoring

Use freight factoring to manage cash flow gaps between paying carriers and collecting from shippers, which can be 30–60 days.

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Frequently Asked Questions

Yes. You must register with the FMCSA for broker authority, obtain a $75,000 surety bond, and designate a process agent. The process takes 4–6 weeks.

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