How to Start a Freight Broker or Freight Forwarding Business in Texas

If you are searching for a freight broker license in Texas, the answer is that the state does not issue one. Your operating authority comes from the federal government through the Federal Motor Carrier Safety Administration (FMCSA). The Texas side is an ordinary business filing with the Secretary of State, plus franchise tax registration with the Comptroller. This guide covers the order that works, the costs we can verify, and the mistakes that cost new filers time and money.

Informational content only: This article is not legal or tax advice. Federal freight rules change, and your facts will differ from the examples here. Talk with a qualified attorney and a CPA before you form your entity, sign carrier or shipper contracts, or make tax decisions.

Choose Your Role First: Broker, Forwarder, or Customs Broker

These three roles sound similar, but federal rules treat them differently. Pick your role before you buy anything, because the authority, bond, and licensing steps depend on it.

Role	What you do	Who authorizes it
Freight broker	Arranges transportation with motor carriers for a shipper and does not take possession of the freight	FMCSA property broker authority, plus $75,000 in financial security
Freight forwarder	Consolidates shipments, arranges transport, and issues its own bill of lading as the party responsible for the shipment	FMCSA freight forwarder authority, with its own financial security rules
Customs broker	Prepares and files entry paperwork to clear imported goods through U.S. Customs and Border Protection (CBP)	A federal license issued by CBP, not by Texas

Many Texas operators do two of these at once, such as brokering domestic truckload freight while arranging border moves for importers. Treat each activity separately when you talk with FMCSA, your surety, and your accountant.

Materials and Information You Need Before You Start

• A business name that is available in Texas records. Search the Secretary of State database at https://www.sos.state.tx.us/corp/searches.shtml and call (512) 463-5555 to check preliminary availability.
• A registered agent with a physical street address in Texas. A post office box alone will not work.
• A federal Employer Identification Number (EIN) from the IRS.
• The names and addresses of your members or officers.
• A SOSDirect account for online filing: https://direct.sos.state.tx.us/acct/acct-login.asp
• A surety bond quote for $75,000 or a trust fund arrangement. FMCSA will not issue operating authority until one is on file.
• A budget that covers the $300 Certificate of Formation, any expedite fees, registered agent costs, and the bond premium. The premium is set by the surety based on your credit and history, so get quotes rather than assuming a number.
• A written plan listing the lanes you will serve, including any Laredo, El Paso, or Rio Grande Valley crossings.

Step 1: Pick an Entity Type and a Compliant Name

Most new brokers form a limited liability company (LLC). A corporation is also possible, and its Certificate of Formation (Form 201) carries the same $300 filing fee. The LLC is the more common choice for a small broker because its ownership and management structure is simple, but the choice has tax and liability consequences that a CPA and attorney should review with you.

Your name must be distinguishable from existing filings in the Secretary of State records. It must include an organizational designation such as Limited Liability Company, Limited Company, LLC, L.L.C., LC, or L.C. It cannot suggest a purpose the company is not authorized to pursue, and it cannot falsely suggest an affiliation with a governmental entity. Avoid anything that sounds like a transportation agency or public authority.

If you need time to finish the filing, you can reserve the name for 120 days for $40 using the form at https://www.sos.texas.gov/corp/forms/806_boc.pdf.

Step 2: File the Certificate of Formation (Form 205)

For an LLC, file the Certificate of Formation (Form 205) with the Texas Secretary of State. The filing fee is $300. File online through SOSDirect, because electronic filing gives the fastest processing. Mailed or hand-delivered documents generally take at least one business day just to be entered, and they show a status of Received until then.

The Secretary of State does not publish a guaranteed standard turnaround. If your launch date matters, the paid expedite tiers are the only guaranteed timing:

Option	Added cost per document	Processing
Standard Expedite	$50	Typically two to three business days
Next Day Expedite	$500	Close of business the next business day, for filings received by 12:00 p.m.
Same Day Expedite	$750	Close of business the same day, for filings received by 12:00 p.m.

Expedite fees are in addition to the $300 filing fee. Preclearance of a draft instrument costs $50.

Every Texas filing entity must continuously maintain a registered agent and registered office in Texas. The agent must be a Texas resident individual, a domestic entity, or a qualified foreign entity. The company cannot serve as its own agent. The office must be a physical street address where the agent can be personally served during normal business hours, and the agent must have consented in writing or electronically. A change of agent or office costs $15. Filing a resignation of registered agent has no fee.

Step 3: Get Your EIN and Register for Texas Taxes

Texas has no state income tax and no corporate income tax. Your main state tax obligation is the franchise tax, a privilege tax administered by the Texas Comptroller of Public Accounts. It applies to LLCs, corporations, and most other entities, including brokers and forwarders.

Do not assume you owe nothing because you are small. The no-tax-due threshold is $2,650,000 of total revenue for the 2026 and 2027 report years. Entities at or below that amount owe no franchise tax, but they must still file the Public Information Report. Above the threshold, the rate is 0.375 percent for retail and wholesale businesses and 0.75 percent for all other entities. The EZ Computation rate of 0.331 percent applies to entities with under $20 million in total revenue. Freight brokers and forwarders are service businesses, so they generally fall under the 0.75 percent rate, but confirm your rate and eligibility with the Comptroller before you rely on it.

The Public Information Report is filed with the Comptroller, not the Secretary of State, and it is due May 15 each year. The Secretary of State charges no annual report fee for LLCs or corporations. Texas does not issue a general state business license, and counties license nothing for a business like yours except the assumed name filing for sole proprietors. Check with your city about any local requirements.

Sales tax is a separate question. The state sales tax rate is 6.25 percent. Most businesses selling taxable goods or services need a sales and use tax permit from the Comptroller, which is issued at no charge and typically takes two to three weeks. Freight and logistics services can be treated differently depending on what you deliver and how you bill for it. Ask the Comptroller directly how sales tax applies to your specific services before you send your first invoice: https://comptroller.texas.gov/taxes/permit/

Step 4: File an Assumed Name Certificate If You Trade Under Another Name

If you will operate under a name other than your legal entity name, such as a brokerage brand, file an Assumed Name Certificate. The fee is $25 with the Secretary of State. LLCs and other registered filing entities file with the Secretary of State on Form 503, and since September 1, 2019 they no longer also file with the county clerk. Sole proprietors and general partnerships file with the county clerk in each county where they maintain a business office, and county fees vary. The certificate can state a term of up to 10 years and must be refiled before it expires. Read the Secretary of State guidance at https://www.sos.state.tx.us/corp/namefilingsfaqs.shtml

Step 5: Obtain Federal Operating Authority From FMCSA

Texas has no separate state broker license, so your operating authority comes from FMCSA. The usual sequence is:

1. Register with FMCSA through the Unified Registration System to obtain a USDOT number and account, if you do not already have one.
2. File the operating authority application for your role: the property broker application for brokers, or the freight forwarder application for forwarders. Confirm the current form names and fees on the FMCSA website at https://www.fmcsa.dot.gov/
3. Designate a process agent for each state where you operate by filing the BOC-3 form. Confirm the current requirements with FMCSA.
4. Make sure your financial security is on file (Step 6). FMCSA will not issue authority until it is.

Your federal authority is issued in the name of your legal entity. Use exactly the name on your Texas Certificate of Formation and your EIN. Mismatched names are a common reason filings get rejected or delayed.

Step 6: Post the $75,000 Financial Security

This is the step most people mean when they search for a texas freight broker bond, and it is federal. Texas does not require a separate state bond for brokers. Under 49 CFR 387.307, a property broker must have a $75,000 surety bond (Form BMC-84) or trust fund (Form BMC-85) on file before FMCSA issues authority.

FMCSA tightened its financial security rules in a final rule issued in December 2023. The stricter BMC-85 trust fund provisions took effect January 16, 2026, so a trust arrangement set up under older assumptions may no longer work as you expect. Ask the trust provider or surety to confirm in writing that your arrangement meets the current rule before you file.

The two options work differently. A surety bond carries an annual premium that depends on your credit and experience. A trust fund requires $75,000 held in a qualifying trust. Neither is free, and we cannot verify a premium figure for your situation, so request quotes from at least two providers and compare their terms.

If you will operate as a freight forwarder, confirm the financial security amount for your forwarder authority with FMCSA. That requirement is set separately, and you should not assume it matches the broker figure above.

Step 7: Plan for Texas Border Freight and Customs Work

Much of the freight moving between Texas and Mexico crosses at Laredo, El Paso, and the Rio Grande Valley. If your lanes include those crossings, expect paperwork that a domestic broker never sees. Confirm the federal rules for each leg before you quote a shipper.

Customs brokerage is federal, not a Texas activity. A customs broker must hold a license issued by U.S. Customs and Border Protection. Texas does not issue a customs broker license, so a search for a texas customs broker should lead you to CBP, not to a state agency. Check the current licensing requirements at https://www.cbp.gov/

If you plan to prepare customs entries yourself, you need the CBP license. If you only arrange trucking and leave the customs filing to the client or a licensed broker, your role and your risk are different. Put that division of responsibility in writing in your contracts.

Step 8: Set Up Insurance, Carrier Vetting, and Contracts

Federal authority and a bond are the entry requirements, not your protection. Before you book a load:

• Verify every motor carrier's operating authority and insurance on FMCSA's public lookup tools before you tender freight to it.
• Ask an insurance agent about coverage for your brokerage liability and cargo exposure, and confirm what each policy excludes.
• Use written agreements with shippers and carriers that spell out liability, payment terms, and claims handling. Have an attorney review your templates.
• Keep business money in business accounts. A CPA can help you set up bookkeeping that supports franchise tax reporting.

Step 9: Calendar the Recurring Texas Deadlines

Once you are operating, these are the obligations to track:

Item	Cost or deadline	Agency
Public Information Report	Due May 15 each year, even if you owe no franchise tax	Comptroller
Franchise tax report	Due May 15. No tax is due at or below $2,650,000 of revenue for the 2026 and 2027 report years	Comptroller
Change of registered agent or office	$15	Secretary of State
Assumed name certificate	$25 to file, refile before the term expires	Secretary of State
Sales and use tax permit	No charge, typically two to three weeks to process	Comptroller
Federal bond or trust fund	$75,000 must stay on file while your authority is active	FMCSA

Common Mistakes to Avoid

• Searching for a Texas broker license. There is none. Your authority and your bond are both federal.
• Filing the Texas entity under one name and applying for FMCSA authority under another.
• Using a post office box or mail forwarding address as your registered office. Texas requires a physical street address where the agent can be served.
• Assuming you owe no franchise tax and skipping the Public Information Report because your revenue is under the threshold. Entities under the threshold still file it.
• Buying a bond without confirming it meets the BMC-84 or BMC-85 requirements, or overlooking the stricter BMC-85 trust fund provisions that took effect January 16, 2026.
• Waiting until your first invoice to ask about sales tax. Ask the Comptroller before you bill anyone.
• Treating customs brokerage as a Texas activity. It is handled federally through CBP.
• Mailing a filing and expecting fast processing. Electronic filing is faster, and the expedite tiers are the only guaranteed timing.

Tips That Save Time

• Run the name check and reserve the name before you pay for a formation filing if the name is central to your launch.
• Start the bond quote and the Texas filing at the same time. The federal side is usually the longer wait.
• Keep one folder with the file-stamped Certificate of Formation, your EIN confirmation, your bond or trust documents, and your FMCSA confirmations. Banks, shippers, and carriers will ask for them.
• Confirm that your registered agent service accepts service during business hours at a physical Texas address, and get that in writing.
• Open your bank account after the entity is filed so the account carries the exact legal name.

What to Expect

Most new operators find the Texas filing straightforward and the federal steps slower. Filing the Certificate of Formation online is usually the quickest step, and the Secretary of State notes that electronic filing gives the fastest processing. FMCSA timing depends on how complete your application is and whether your financial security is in place, so plan for federal authority to take longer than the Texas filing. Check current processing estimates on the FMCSA website before you commit a launch date to shippers.

If you complete the filings correctly the first time, you are likely to avoid the rework that delays many new brokerages. Results will still vary with your credit, your bond provider, your insurance, and the lanes you choose. Treat this guide as a checklist to bring to your advisers, not as a guarantee of approval or a timeline.

Official Resources and Help

• Texas Secretary of State: https://www.sos.state.tx.us/corp/index.shtml
• SOSDirect online filing: https://direct.sos.state.tx.us/acct/acct-login.asp
• Texas Comptroller of Public Accounts: https://comptroller.texas.gov/taxes/
• Texas sales and use tax permit: https://comptroller.texas.gov/taxes/permit/
• FMCSA: https://www.fmcsa.dot.gov/
• U.S. Customs and Border Protection: https://www.cbp.gov/
• Texas Small Business Development Center Network: https://www.sbdctexas.org/
• SBA Dallas Fort Worth district office: https://www.sba.gov/district/dallas-fort-worth

The Texas Small Business Development Center Network offers small business advising that can help you check your plan before you file. Those advisers do not replace an attorney or CPA for contracts, liability questions, or tax positions.