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Start a Trucking Company in Eight Steps

 


Are you a prospective owner-operator looking to start a trucking company? If so, this article is a step-by-step guide to help start your business. If the transition from professional truck driver to owner-operator seems intimidating, consider these promising statistics from the American Trucking Associations:

  • 70% of all freight in the United States is currently transported by the trucking industry
  • 27% growth is expected over the next decade
  • 91% of trucking companies operate six or fewer trucks, meaning the industry is dominated by small carriers

The logistics and transportation industry is highly competitive and has great potential for professional truck drivers that understand the trade. If you are ready to start a trucking company, but you are not certain where to begin, this straightforward guide will steer you in the right direction.

Step 1: Write a business plan

Just like you’d begin a new job with a fresh perspective and set of goals, you’ll also want to start your new trucking company with an organized plan. A business plan is your roadmap to success and can be refined as your business grows. It helps you get organized, identify goals, articulate your value proposition, and presents potential obstacles down the road.

Writing a business plan might seem like a lot of work. Don’t worry, we’ve got you covered. Download our business plan template to help you get organized and on the right track.

Step 2: Legally establish your company

Operating your trucking company as a properly structured corporation or Limited Liability Company (LLC) sets boundaries between your personal assets and business liabilities. In addition to protecting your personal property as a business owner, incorporating offers several legal, tax, and business advantages. Use our Business Startup Wizard to decide which structure is the ideal fit for your new trucking company.

When you form a corporation or LLC, you will need to take the following steps:

  • Appoint a registered agent. A registered agent is the state’s way of communicating with a business entity and is required by law in most states. As the official point of contact for the secretary of state, the registered agent must be present at a physical address (not a P.O. Box) to sign for and receive legal notices, state mandates, wage garnishments, and tax documents during specific business hours. It is critical for registered agents to be consistently accessible. A missed delivery could jeopardize your company’s good standing with the state or enable a lawsuit to proceed against you without your knowledge.
  • Obtain your EIN to open a bank account. Your employer identification number, or EIN, is like a social security number for your business. This nine-digit number is required to open a business bank account and must be present on all tax filings for the life of your business.

We can help: Our incorporation specialists teams can help you start an LLC or corporation, obtain an EIN, and serve as your business’s registered agent.

Step 3: Obtain necessary business licenses and permits

Most state, county, and local governments require companies to have the right licenses and permits in place before they open their doors. There are more than 150,000 filing jurisdictions across the country, all with independent requirements. Depending on your service and where you operate your trucking company, any number of licenses and permits may apply to your business.

Every owner-operator should determine if the following items are required to run a successful trucking company:

  • A commercial driver’s license (CDL) and any necessary endorsements: Federal law requires drivers of commercial motor vehicles to obtain a CDL. Contact your state’s licensing agency for more details.
  • A USDOT number: The Federal Motor Carrier Safety Administration (FMCSA) uses trucking companies’ unique USDOT number to identify the company when conducting inspections, audits, and investigations.
  • A Motor Carrier Operating Authority (MC number): You may need to obtain more than one MC number for your trucking business, depending on your business operations.
  • A BOC-3 filing: Every motor carrier, broker, and freight forwarder is required to designate a process agent that can file Form BOC-3, or blanket of coverage, on their behalf with the Federal Motor Carrier Safety Association (FMCSA). Only one completed form may be on file and it must include all states for which agency designations are required. One copy must be retained by the carrier or broker at its principal place of business. As a process agent in all 50 states, our CSC team can handle your BOC-3 filing(s).
  • International Registration Plan (IRP) credentials and International Fuel Tax Agreement (IFTA) decal: Trucking companies offering services in or across multiple states must obtain IRP credentials and IFTA decals for their vehicles.

We're ready to talk.

Our team specializes in BOC-3 filings and business license portfolio management across multiple jurisdictions.

Step 4: Buy or lease the right equipment

The proper equipment can make the difference between success and failure. When selecting equipment for your trucking company, consider the following items:

  • Can the vehicle accommodate the needs of your cargo? For instance, if you are transporting perishable items, you might consider a refrigerated compartment.
  • Is buying or leasing equipment a better option for your new business?

This is an opportune time to conduct additional research and leverage your network connections. Speak to professional truck drivers that have made the transition to owner-operator and take the time to compare options before you make a purchasing decision.

Step 5: Select the proper insurance coverage

As an owner-operator you will need to obtain business insurance for your new trucking company. The most effective way to secure the best premium is to contact several agents and consider the following options before you make a decision on a policy.

  • Primary liability insurance
  • Cargo insurance
  • ....... ..... ......

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