California Freight Broker Bond

Freight brokers in California must hold a $75,000 freight broker bond to operate legally. The bond, also known as a BMC-84, ensures brokers follow federal rules and protect shippers and carriers from non-payment or contract violations. This bond is a federal FMCSA requirement, not a California-only rule, and it applies to all brokers nationwide.

A freight broker bond serves as a financial guarantee that a broker will meet contractual obligations and pay carriers and shippers as agreed. If a broker fails to meet those terms, a claim can be filed against the bond.

California enforces strict business standards, which is why freight brokers must demonstrate financial responsibility. Holding a BMC-84 bond helps build trust, shows compliance with the Federal Motor Carrier Safety Administration (FMCSA), and enables brokers to maintain their operating authority in a competitive logistics market.

Freight brokers in California must meet federal and state conditions before obtaining their license. These include legal filings, minimum coverage, and eligibility standards to operate compliantly.

Brokers must file proof of financial responsibility—either through a BMC-84 surety bond or a BMC-85 trust fund agreement—with the FMCSA as part of the FMCSA broker registration process. The minimum bond amount is $75,000, ensuring coverage for claims involving non-payment or breach of contract.

Eligibility depends on a broker’s financial stability and creditworthiness. Applicants must hold a valid USDOT number, obtain operating authority (MC number), and file a BOC-3 process agent form. Businesses registering in California should also check the California Secretary of State’s business programs page to confirm local registration requirements.

While the FMCSA sets nationwide bond rules, California adds its own business standards. Brokers operating here must follow both federal transportation laws and state-level commercial regulations.

California emphasizes consumer protection and corporate compliance. While the freight broker bond itself is federally mandated, the state requires brokers to properly register their business entity—whether as an LLC, corporation, or sole proprietorship—before engaging in brokerage operations. Unlike some states, California does not require an additional “state bond,” but all brokers must ensure continuous compliance with both federal bonding and state business registration obligations.

This layered oversight ensures California brokers maintain good standing both with the FMCSA and the Secretary of State, which is critical for avoiding suspension or penalties.

The cost of a California freight broker bond depends mainly on credit and financial history. Surety companies calculate the bond premium as a small percentage of the $75,000 bond amount.

Rates typically range from 1% to 5% of the total bond amount per year. Brokers with strong credit (700+ FICO) may pay as little as 1%, or around $750 annually. Those with fair credit might pay closer to 5%, or about $3,750 per year.

Other factors—like years in business, financial statements, and past claims—also influence the rate. For more information on how these rates are determined, visit our guide on surety bond cost.

Our team helps clients find competitive rates by working with multiple A-rated surety partners. To see your exact pricing, you can start an online application with no obligation.

Getting bonded in California is simple when you follow the right steps. The process includes completing a short application, providing documentation, and selecting a trusted surety provider.

Step-by-step process:

1. Complete the FMCSA’s online broker registration and obtain your MC number.
2. File your BOC-3 form designating a process agent.
3. Submit your bond or trust agreement (BMC-84 or BMC-85) to the FMCSA.
4. Receive confirmation of operating authority.
    

To apply for your bond, fill out our online application. You’ll need business details, owner information, and financial statements. We handle the rest—working directly with the surety underwriters to get you the best rate possible.

For more guidance, see our resource on how to get bonded. Choosing a reputable surety provider like Lance Surety Bonds ensures your bond is filed accurately and quickly, helping you stay compliant with FMCSA deadlines.

Yes, brokers with less-than-perfect credit can still get bonded. Lance Surety Bonds specializes in helping applicants secure approvals even with financial challenges.

We work with markets that offer bad credit bonding programs, designed for applicants with scores below 650. These programs may come with higher premiums, but they ensure brokers can stay compliant and continue operating.

To improve your approval odds:

• Pay down outstanding debts.
• Provide clear financial statements.
• Work with a specialist familiar with underwriting and credit-based premiums.
   

Even if your credit isn’t ideal, our team can often help you find affordable rates and guide you through ways to strengthen your financial profile for future renewals.

Freight broker bonds must be renewed annually to maintain continuous coverage. The renewal process is simple and ensures ongoing compliance with FMCSA rules.

Sureties send renewal reminders 30–60 days before the expiration date. As long as your premium is paid on time, your bond stays active with no gap in coverage. Because the BMC-84 is a continuous bond, it renews automatically once payment is received.

Renewing on time avoids potential bond cancellation and claims, which could suspend your broker authority. Keeping accurate contact and business details with your surety provider ensures smooth renewals every year.

Do I need a separate California license beyond the FMCSA bond?

No. California doesn’t require an additional freight broker license. However, you must still register your business with the California Secretary of State and maintain your federal FMCSA authority.

How long does FMCSA take to issue operating authority after filing the bond?

Processing typically takes 4 to 6 weeks after all filings are complete and fees are paid. This includes verification of your bond and BOC-3 form.

What happens if a claim is made on my BMC-84?

If a carrier or shipper files a valid claim, the surety pays up to the bond’s $75,000 limit. The broker must then reimburse the surety for the claim amount plus any legal costs.

Are there different rules for household-goods brokers?

Yes. Household-goods brokers must follow additional consumer protection laws and may need to meet stricter documentation and insurance requirements under FMCSA regulations.

Federal Motor Carrier Safety Administration. (n.d.). Broker registration. Retrieved from
https://www.fmcsa.dot.gov/registration/broker-registration

California Secretary of State. (n.d.). Starting a business. Retrieved from
https://www.sos.ca.gov/business-programs/business-entities/starting-business

Lance Surety Bonds. (n.d.). Freight broker bonds. Retrieved from
https://www.lancesuretybonds.com/license-bonds/freight-broker-bonds

Lance Surety Bonds. (n.d.). Surety bond cost. Retrieved from
https://www.lancesuretybonds.com/learn/surety-bond-cost

Lance Surety Bonds. (n.d.). How to get bonded. Retrieved from
https://www.lancesuretybonds.com/learn/how-to-get-bonded

Lance Surety Bonds. (n.d.). Surety bond quote. Retrieved from
https://www.lancesuretybonds.com/surety-bond-quote