How to Become a Freight Broker in South Dakota

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How to Become a Freight Broker in South Dakota

Freight brokers are essential to product supply and demand across the country.

Their job is to coordinate shipments arriving at certain locations to trucking companies transporting the cargo to its destination.

The freight broker acts as a go-between, and this is a career field with plenty of opportunities for the right candidate.

Anyone looking for a career that offers flexible options and plenty of job availability might consider being a freight broker in South Dakota.

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Freight Broker Duties in South Dakota

Freight brokers in the state of South Dakota are responsible for ensuring cargo gets from the shipping company to the client’s location via select trucking companies.

The freight broker contacts the shipping company to arrange the pick up of the cargo.

Before they contact the shipping company, they reach out to the trucking companies to find the best carriers for the best prices to get cargo from one place to another.

The freight broker is given what is known as a spread or an allotment of money to get the job done.

Whatever money is left over after the trucking company is paid, it is for the freight brokers to keep.

In order to become a freight broker in the state of South Dakota, the candidate needs top communication skills and the ability to multitask effectively.

Licensing Requirements to Become a Freight Broker in the State of South Dakota

If you want to become a licensed freight broker in the state of South Dakota, there are a few things you will need to do first, including a high school diploma or a GED.

The first step is to register as a business.

When you register as a business, you will be required to choose between an LLC, C corporation, or an S corporation.

Once that is completed, you will need to submit an OP-1 form to the proper authorities.

Then you will have to acquire and maintain a $75,000 surety body at all times.

While you are not required to have a degree or formal training, you will want to have it to avoid struggling when you start your career.

There is plenty of information to know and learn and going to an accredited state program is the best way to start on the right foot.

Freight Broker Programs in South Dakota

There are a couple of freight broker programs to choose from in the state of South Dakota.

The class materials and the price can vary from program to program.

Currently, they include the following options:

School Name Address
Western Dakota Technical Institute 800 Michelson Dr. Rapid City, SD 57703
Black Hills State University 1200 University St. Spearfish, SD 57799
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These programs offer both in-person and online classes.

It is up to the student to determine if the location and schedule fit their needs for an in-person course.

Online classes might be the best solution if they live away from the area or have an unusual schedule.

Salary

The salary of a freight broker can vary greatly depending on their training, experience, and connections.

However, on average, most freight brokers earn anywhere from $33,000 to $35,000 per year to begin.

However, the top-earning freight brokers can make $55,000 per year in excess.

This is one reason you want to get the education you need from a top program.

If you start on the right foot and get the training you need to gain momentum quickly, you can have a lucrative career in just a few years.

Annual Salary Range:
$39K
$45K
$51K
10%
50%
90%
Annual Salary by Location:
Location Avg. Annual Salary
Sioux Falls $47,352
Rapid City $45,780
Aberdeen $42,989
Watertown $46,560
Brookings $46,560
Mitchell $46,560
Pierre $43,781
Yankton $45,490
Huron $44,775
Vermillion $44,419

Regional Salary in South Dakota

Region Employed Avg. Annual Salary Avg. Hourly Pay Top 10% Annual Salary Bottom 10% Annual Salary
Rapid City, SD70$61,010$29.33$90,640$47,050
Sioux Falls, SD130$58,690$28.22$74,880$46,830
* Salary information based on the May 2022 Occupational Employment Statistics (OES) Survey for Cargo and Freight Agents, OCC Code 43-5011, BLS.
* Employment conditions in your area may vary.

Summary

If you want to become a freight broker in the state of South Dakota, you will need to complete some steps before you can move forward.

You will need to adhere to specific FMCSA guidelines while working in this profession and complete all the steps needed to get your license.

That includes registering as a business and completing the proper forms.

Then you must have a surety bond in place.

Before you begin your journey, check out some state training programs offered online and in person.

You need to learn those essential skills and details provided during the course instruction to succeed at your job.

Sources

Frequently Asked Questions

Do you need a degree to become a freight broker in South Dakota?

No, you do not need a degree.

However, getting an education is very important.

Consider taking a training program before starting your career.

Can I work as a freight broker in South Dakota without a surety bond?

No.

You cannot legally work as a freight broker without a surety bond in place for at least $75,000 at all times.

How much is the tuition for freight broker programs in South Dakota?

The programs offered currently vary in cost from school to school.

On average, classes can cost anywhere from $2k per course to over $8k per course.

Check with the school to find out before making a decision.

USA Freight Broker License by State


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