Minnesota Freight Broker Bond (BMC-84)

Freight brokers in Minnesota must secure a $75,000 surety bond (BMC-84) to comply with federal FMCSA requirements. This bond protects shippers and carriers if a broker fails to meet financial or contractual obligations. Here’s everything you need to know about Minnesota freight broker bond requirements, costs, and how to get one.

A Minnesota freight broker bond is a financial guarantee ensuring brokers operate ethically and meet payment obligations. The bond is a federal FMCSA requirement, not a Minnesota-only rule, but brokers registered in the state must still comply. It provides protection for shippers and carriers if a broker fails to pay or follow through on agreements.

Freight brokers act as middlemen connecting carriers with shippers, and the BMC-84 bond adds accountability to this process. In Minnesota, as across the U.S., the bond assures financial responsibility and helps maintain trust across the freight and logistics network.

Freight brokers operating in Minnesota must hold an active license from the Federal Motor Carrier Safety Administration (FMCSA) and obtain a $75,000 BMC-84 bond to activate their broker authority. According to the Broker Registration guidelines, this bond must be maintained continuously to stay compliant.

The bond covers claims made by shippers or carriers if a broker fails to meet payment or performance obligations. Eligibility typically depends on the applicant’s credit score, business experience, and financial stability. To get licensed, brokers must also register their business and obtain a Minnesota Tax ID through the MN Department of Revenue.

While the BMC-84 is federally mandated, Minnesota adds a few local considerations. Brokers must follow the state’s business registration and tax filing rules, and many operate under Minnesota-based LLCs or corporations. Unlike some states, Minnesota doesn’t require a separate intrastate freight broker bond for in-state loads, simplifying compliance.

Compared to other states, Minnesota enforces strict reporting for companies registered locally, ensuring brokers pay applicable state taxes and maintain valid business credentials. These conditions help prevent fraud and improve transparency in the freight sector.

The cost of a Minnesota freight broker bond depends primarily on the applicant’s credit and financial history. Surety providers typically charge 1–5% of the $75,000 bond amount as an annual premium.

• For applicants with strong credit, rates are around 1%, meaning the annual cost could be as low as $750.
• Those with lower credit or limited financial history might pay up to 5%, or roughly $3,750 per year.

Other factors influencing cost include years in business, previous bonding history, and financial documentation. For a detailed overview of pricing, see Lance Surety’s guide on surety bond costs.

The process of getting bonded in Minnesota is straightforward. Here’s a simple step-by-step guide:

1. Confirm eligibility – Make sure your business is registered and has a valid FMCSA USDOT number.
2. Apply online – Complete an online application with a reputable surety provider.
3. Submit documents – You’ll typically need your business registration, financial statements, and identification.
4. Receive your quote – The surety will assess your credit and determine your premium rate.
5. Sign and file – Once you sign your bond, the surety files it electronically with the FMCSA using Form BMC-84.

Working with a licensed surety experienced in how to get bonded ensures your application meets all federal and state standards.

Yes, you can still qualify for a Minnesota freight broker bond even with less-than-perfect credit. Many sureties offer programs for applicants with low credit scores by requiring higher premiums or additional documentation such as financial statements or collateral.

Applicants with poor credit should:

• Provide proof of steady income or business revenue
• Minimize existing debts before applying
• Choose an established surety that offers flexible options for freight broker bond Minnesota applicants

Improving your credit score over time can help lower renewal costs on future bonds.

A Minnesota freight broker bond must be renewed annually to maintain FMCSA authority. Most sureties send renewal reminders 30–60 days before expiration, simplifying compliance.

Renewal typically requires paying your annual premium and confirming that business and licensing details haven’t changed. Staying compliant helps you avoid suspension of broker authority and ensures smooth operation across Minnesota’s freight network.

Is the freight-broker bond a Minnesota law or a federal requirement?

It’s a federal requirement under the FMCSA, not a Minnesota-specific law. All freight brokers in the U.S., including those based in Minnesota, must file a BMC-84 or BMC-85 trust to stay compliant.

Do I need a Minnesota tax ID or business registration before applying?

Yes. Brokers must register with the MN Department of Revenue and secure a business tax ID before filing their BMC-84 bond.

What happens if my available security falls below $75,000?

If your coverage drops below $75,000, FMCSA can suspend or revoke your broker authority until the bond is restored. Maintaining the full bond amount is required at all times.

How soon will FMCSA issue authority after I file the BMC-84?

Once your surety files the bond electronically, FMCSA typically issues your active authority within a few business days, assuming all other registration requirements are complete.

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

Minnesota Department of Revenue. (n.d.). Registering your business. Retrieved from
https://www.revenue.state.mn.us/guide/registering-your-business

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.). Online application. Retrieved from
https://www.lancesuretybonds.com/surety-bond-quote