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Your Guide to Getting a Freight Broker License in Texas

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4 thoughts on “Your Guide to Getting a Freight Broker License in Texas

  1. Freight brokers are responsible for searching for shippers who need cargo transported from one place to another. Freight brokers must also search for trucks to move the cargo and contact the shippers to let them know that they ve found trucks. Freight brokers act as middle men for each party and must use cost-effective measures to decide on suitable rates for both parties. Becoming a licensed freight broker in Texas is a fairly easy process.

    1. Hi Tyla,
      Thanks for your input! You’re absolutely right—getting a freight broker license in Texas is a pretty straightforward process. In fact, it’s the same across all states since freight brokerage is federally regulated by the FMCSA.

    1. Hi Floyd,
      I would not recommend it! Having dual authority as both a freight broker and a carrier comes with significant challenges. The biggest concerns are conflicts of interest, double brokering risks, higher insurance costs, and difficulty securing shippers and brokers who are willing to work with you.

      If you still want to operate both, it’s best to keep them completely separate — that means separate MC numbers, addresses, and financial records to avoid compliance issues and potential legal trouble. But I think it’s not worth it, at all.

      Here’s a quick breakdown of why getting both a freight broker authority and a carrier authority (dual authority) in the U.S. is not a good idea:
      – Conflict of Interest & Double Brokering Risks – Double brokering is illegal in many cases. Many shippers and brokers refuse to work with dual-authority companies due to uncertainty about liability and payment responsibilities.
      – Increased FMCSA Scrutiny – The FMCSA closely monitors dual-authority companies, which can lead to audits, penalties, or even revocation of authority if compliance issues arise.
      – Higher Insurance Costs and Complexity – The insurer would see you as a higher-risk applicant. You’ll need extensive coverage for both brokerage and carrier operations, increasing expenses and complexity.
      – Payment & Legal Issues – If a dispute arises over a damaged load, it can be unclear whether the claim falls under your carrier insurance or broker bond.
      – Operational Challenges – Managing both authorities requires strict separation of finances, operations, and compliance to stay within FMCSA regulations.

      If you need help deciding the best path for your business, feel free to ask!
      For more tips and details check out our free Freight Broker Education Center.

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