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Comparison

Common carrier MC vs broker MC

Short answer

A common carrier MC physically transports freight using its own equipment and drivers under 49 USC §13902 motor-carrier authority. A broker MC arranges transportation between shippers and motor carriers under 49 USC §13904 broker authority, taking a margin without owning equipment. Different operational requirements, different financial-responsibility filings, different regulatory exposure: motor carriers must maintain liability coverage filed on Form BMC-91 or BMC-91X ($750,000 minimum for general freight per 49 CFR §387.9), while brokers must post a $75,000 surety bond or trust fund under 49 CFR §387.307 (Form BMC-84 or BMC-85). Both MC types pay the $300 application fee per 49 USC §13908, but only motor carriers run drivers, vehicles, drug-testing programs, and DOT inspections. A single legal entity may hold both authorities - many growing fleets add broker authority as a second MC to legally arrange overflow loads.

Reviewed by Korey Sharp-Paar · Updated

Side-by-side comparison

DimensionCommon Carrier MCBroker MC
Authority49 USC §1390249 USC §13904
What it doesPhysically transports freightArranges transportation
EquipmentRequired (owned or leased)None - broker doesn't haul
DriversRequired (employed or owner-op)None
Financial responsibilityBMC-91 BIPD ($750k+)BMC-84 bond or BMC-85 trust ($75k)
Cargo insuranceCarmack-required carrier liabilityNot required (contingent optional)
FMCSA scoringSMS BASIC scoresNo BASIC scores (no inspections)

When to choose common carrier MC

Common carrier MC is the right call for any operation that owns trucks and intends to physically transport freight for compensation. The §13902 authority covers the physical-transport business model - the carrier owns or leases equipment, employs drivers (or operates as an owner-operator), and accepts compensation for moving freight from shipper to consignee. Operating costs include equipment, fuel, drivers, BIPD insurance, cargo insurance, maintenance, and the operational compliance overhead of §391-§396 driver and equipment regulations.

Common carrier MC is also subject to FMCSA SMS scoring (Safety Measurement System) - the BASIC scores that surface on every roadside inspection and crash. Brokers and shippers vetting carriers check SMS BASIC scores before adding the carrier to approved lists. A clean SMS profile is one of the carrier's most valuable assets; a deteriorating SMS profile can lock the carrier out of broker freight.

When to choose broker MC

Broker MC is the right call for an operation that arranges transportation without owning equipment. The §13904 authority covers the matching business model - the broker contracts with shippers to arrange transportation, contracts with motor carriers to physically perform it, and takes a margin between what the shipper pays and what the carrier accepts. Operating costs are dramatically lower because the broker doesn't own equipment, employ drivers, or bear vehicle-operating risk. The main capital outlay is the $75,000 BMC-84 surety bond or BMC-85 trust fund.

Brokers don't face SMS BASIC scoring because they don't physically operate vehicles - there are no roadside inspections of brokers, no crash data on brokers. The broker's reputation runs on payment timeliness (paying contracted carriers within agreed terms) and on the volume of shipper relationships the broker maintains. Slow-paying brokers struggle to recruit carriers; high-volume brokers with strong payment histories build a roster of preferred carriers that gives them load-acceptance reliability.

When to hold both

Mid-size and larger fleets often hold both MC types - operating their own equipment under the carrier MC and brokering out demand spikes under the broker MC. The combined operation lets the fleet absorb capacity volatility: when shipper demand exceeds the carrier's in-house capacity, the broker MC accepts the excess demand and arranges third-party carrier execution. The carrier captures both the carrier-side margin (on its own equipment runs) and the broker-side margin (on third-party arranged runs).

Each MC has its own OP-1 application, its own financial-responsibility filing (BMC-91 for carrier, BMC-84 for broker), and its own ongoing compliance overhead. The two MCs are typically held by a single legal entity but operate as separate FMCSA-recognized authorities. It pays to clearly separate accounting and contractual flows between the two operations so disputes (broker non-payment, carrier cargo claims) don't cross-contaminate.

Frequently asked questions

Can the same legal entity hold both a common carrier MC and a broker MC?

Yes. A single legal entity can hold both MC types - typical at mid-size and larger fleets that operate their own equipment plus broker out demand spikes. Each MC has its own OP-1 application and separate financial-responsibility filing (BMC-91 BIPD for the carrier MC, BMC-84 surety bond for the broker MC).

Is a broker required to carry insurance on the freight?

No. The §387.301 broker financial-responsibility requirement is the $75,000 surety bond (BMC-84) or trust fund (BMC-85) - protection for shippers and contracted carriers from broker non-payment. Cargo insurance covers physical damage to freight and is the contracted carrier's responsibility under the Carmack Amendment, not the broker's.

What do FMCSA's records show for each MC type?

In FMCSA's records (Motus public search, by USDOT number or company name), a common carrier MC shows its BMC-91 insurance filing, BOC-3 process-agent status, and authority status; its safety data (inspections, crashes, BASIC scores) is tracked separately in FMCSA's safety systems. A broker MC shows the BMC-84/BMC-85 financial-responsibility filing, BOC-3 process-agent status, and broker authority status - but no BASIC scores because the broker doesn't physically operate vehicles.

Related comparisons

Apply for carrier MC or broker MC

The OP-1 application is prepared for either authority type. We prepare your USDOT number and MC operating-authority application; it is submitted to FMCSA in Motus by you or a filer you authorize. FMCSA charges a $300 application fee for each operating authority type (49 CFR 360.3T); a USDOT number is free. Our $199 service fee and the $300 FMCSA fee are itemized as two separate amounts before you pay ($499 total).

Start your application — $199 service fee + $300 FMCSA fee MC authority overview

Submitted to FMCSA in Motus by you or a filer you authorize.

Independent filing service operated by Fast Filing Group LLC. Not affiliated with FMCSA, USDOT or any government agency.

This page is informational and is not legal advice. Verify regulatory requirements against 49 USC §§13902-13904 and 49 CFR Part 387 before relying on this comparison.

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