Moving Broker License Requirements: What You Actually Need

The moving industry is one of the most heavily regulated sectors of interstate commerce. Operating as a household goods (HHG) moving broker without the correct federal authorizations is not just a business risk — it is a federal violation that can result in significant fines and forced shutdown. This guide explains exactly what you need to operate legally.

Federal vs. State Requirements

Moving brokers who facilitate interstate moves — moves that cross state lines — are regulated primarily at the federal level by the FMCSA. State-level moving regulations typically apply to intrastate carriers (trucks), not brokers.

This means the primary legal requirements for a moving broker are federal, not state-specific. However, you may need a state business license to legally operate a company in your home state, and some states have additional consumer protection regulations for moving companies that brokers should be aware of.

Requirement 1: FMCSA Household Goods Broker Authority

This is the foundational requirement. Before you can legally act as a broker for household goods moves, you must hold an active FMCSA Broker Authority for Household Goods, issued under 49 CFR Part 371.

To obtain this authority, you must:

• Have a legal business entity (LLC, corporation, or sole proprietorship)
• Have a valid EIN (Employer Identification Number)
• File the OP-1 (HHG) application with the FMCSA and pay the $300 fee
• Have a BOC-3 filed with the FMCSA designating your process agents
• Have a valid $75,000 surety bond or trust fund on file with the FMCSA

Once all requirements are met and the FMCSA reviews your application (typically 4–6 weeks), you will receive an active MC number — your federal license to operate.

Requirement 2: $75,000 Surety Bond (BMC-84)

Federal regulations require all HHG brokers to maintain a $75,000 surety bond at all times. This bond provides financial protection for shippers and carriers in the event the broker fails to fulfill their contractual obligations.

The bond must be filed directly by your bonding company with the FMCSA using the BMC-84 form. You cannot file this yourself. The bond must remain active continuously — if it lapses for any reason, the FMCSA will automatically revoke your broker authority.

As an alternative to a surety bond, some brokers choose to establish a $75,000 trust fund (BMC-85). This requires you to deposit $75,000 in a federally insured financial institution and have the trust filed with the FMCSA. This option is not practical for most new brokers.

Requirement 3: BOC-3 Process Agent Coverage

A BOC-3 is a filing that designates a process agent in every state where your brokerage operates. A process agent is an individual or company authorized to receive legal documents (such as summons or complaints) on your behalf.

Most new brokers use a national process agent service that covers all 50 states in a single filing. This is a one-time setup — once filed, the BOC-3 remains on record unless you change your process agent.

Requirement 4: Written Disclosure to Shippers

FMCSA regulations require moving brokers to provide written disclosure to shippers before any transaction. Specifically, you must disclose:

• That you are a broker, not a carrier
• Your MC number and contact information
• The carrier's identity, MC number, and contact information
• An estimate of charges and the basis for that estimate
• Your cancellation policy and refund procedures

Failure to provide proper shipper disclosures is one of the most common compliance violations among new moving brokers and can result in FMCSA fines.

Requirement 5: Only Use FMCSA-Registered Carriers

By law, HHG brokers may only dispatch moves to motor carriers who hold valid FMCSA authority and have a valid USDOT number. Before dispatching any job to a carrier, you are required to verify their operating authority status in the FMCSA SAFER database.

Using unregistered carriers — regardless of how low their rates are — exposes you to significant liability and is a federal regulatory violation.

State Business License

Most states require any business entity operating within their borders to hold a general business license. This is separate from FMCSA authority and is issued by your state or local government. Requirements and fees vary by location.

If you operate from a home office, some municipalities require a home occupation permit in addition to a standard business license.

What You Do NOT Need

Moving brokers often ask about requirements that do not actually apply to them:

• DOT physical or CDL: Not required for brokers — only for drivers of commercial vehicles.
• Commercial auto insurance: Not required for brokers — only for motor carriers operating trucks.
• FMCSA carrier authority: You need broker authority, not motor carrier authority. These are different applications.
• State moving license: Most states do not separately license moving brokers — federal authority covers interstate operations.

Staying Compliant After You Launch

Getting your authority is just the beginning. Ongoing compliance requires you to:

• Maintain your surety bond continuously (do not let it lapse)
• Update your FMCSA registration if your address, entity name, or contact information changes
• Keep records of all transactions, estimates, and carrier assignments for at least one year
• Provide proper shipper disclosures on every transaction
• Never dispatch to unregistered carriers

Already licensed? See what to do next →