How do I start a trucking company?

The first step in starting your trucking company is deciding what kind of company you are going to create and filing with your state secretary of state office. An LLC is the most popular form of small business, but Sole Proprietorships and C corporations are used as well. Once you file for your company with your state secretary of state office, you will also need to register for an Employer Identification Number (EIN) with the IRS. We highly recommend that you do not use your personal SSN for running your business, even if you are registered as a sole proprietorship.

Once your business and EIN have been created, it is time to decide what kind of trucking company you will be running. The categories include;

• Interstate (multiple states)
• Intrastate (one state)
• Non-CDL (10,000 - 26,000 lbs GVW)
• CDL (26,001 lbs GVW and up)

The type of trucking company you are going to start will determine what kind of government filings you will be required to complete to be legal. You will also need to determine what and where you are planning to haul, as those decisions may also change your requirements.

After you have determined how and where your trucking company is going to operate, it is time to get your authority requirements filed and taken care of. If you are confused as to what your requirements are or are unsure how to file the required paperwork, our expert authority and compliance staff can take care of the process for you. After your authority filings are complete, you have to complete a 21-day protest period before the FMCSA will activate your authority. During that 21-day window, you should be looking to complete the final requirements to get on the road.

As soon as you have filed for your authority, you will need to begin the process of shopping for your required commercial insurance. Your insurance requirements will vary based on what you are hauling, your GVW, and other details. As such, it is important that you shop for insurance with a company that is familiar with the insurance requirements of the FMCSA to ensure that you are getting the insurance that will be required of you. It is also important to note that not all insurance companies will underwrite brand-new authorities, so finding a company that will is especially important. Our insurance partner, Mustard Seed Truck Insurance, does both.

If you are going to be driving across state lines or more than a 150-mile radius from your home base, in most cases, you will also be required to install an Electronic Logging Device (ELD) in your truck. At its most simple, an ELD will log your hours of service for DOT audits. For those trucks at CDL weights, your ELD will also track your miles driven per state, and in rare instances, also your gallons of fuel purchased per state. This data is critical to both DOT audits and your International Fuel Tax Agreement (IFTA) and International Registration Plan (IRP) filings.

One of the biggest expenses you will have when operating your trucking company is fuel. Hauling a full load at 80,000 lbs. can cost an immense amount of fuel, meaning that any savings you can find for fuel will quickly add up. The most common way carriers save on fuel is to apply for a fuel card that offers them fuel discounts at the pump. These fuel discounts can save a carrier thousands of dollars a year, which directly translates into better profits. Our WEX/EFS fuel card comes with pre-negotiated fuel discounts at thousands of locations nationwide.

Once you have everything you will need to start running, you will have to concern yourself with how you are going to maintain cash flow out on the road. Brokers taking 30 to 60 days to pay on a delivered load is extremely common, which can severely restrict your cash flow and make it difficult to run without a large savings to live off of. Most truckers either only work with brokers who offer a quick pay option, or they find some other sort of same-day payment service to help them maintain the cash flow they need to operate. Our same-day payments service helps our clients convert their invoices instantly into cash, allowing them to grow and invest in their business much faster than waiting for their slow-paying customers to mail a check.

Even once you are fully legal and running, you will be required to maintain your authority with monthly, quarterly, or annual filings. The filings you will be required to maintain depend on the type of authority you have. Our Annual Services program is built to help you stay legal and in compliance, so you can operate knowing everything required to keep you legal is being taken care of.

Frequently Asked Questions About Starting A Trucking Business

What Do I Need to Start a Trucking Business Legally?

To start your trucking business legally, you’ll need to register your business with your state and obtain the proper business license and permits. That typically includes forming an LLC or corporation, securing a federal Employer Identification Number (EIN), and filing for your trucking authority. You'll also need to provide legal documents like proof of insurance, business structure details, and license information. Depending on where your company will operate and whether you’re using one truck or a fleet, your required filings may vary.

How Much Does it Cost to Start a Trucking Company?

The cost to start a trucking company depends on multiple factors, including whether you're purchasing a truck or leasing a truck and trailer, the type of freight you plan to haul, and your insurance needs. If you're looking to start a trucking business with limited capital, consider options like a short-term business loan, working with factoring companies, or starting with just one truck. We help business owners like you assess startup costs and explore ways to finance your trucking company through our trusted partners.

Can I Start a Trucking Company with No Money?

It’s challenging but not impossible to start a trucking company without capital. You’ll need a solid business plan, good credit or business credit, and a strategic approach to financing. Many new business owners start by leasing a truck or partnering with a factoring company for same-day payments. Getting your business off the ground with no money may require securing a business loan, seeking support from the Small Business Administration, or using your business credit score to apply for startup-friendly funding options.

Do I Need a Business Bank Account?

Yes, you’ll need to open a business bank account to keep your finances organized and separate from your personal income. A dedicated business bank account is essential for tracking expenses, managing freight payments, and building your business credit. It also supports liability protection when operating under a limited liability company.

Should I Lease or Buy a Truck When Starting Out?

Whether you lease or buy a truck depends on your business plan and available funding. Leasing a truck can lower upfront costs and offer flexibility, while purchasing a truck may be more cost-effective long term. For some small business owners, starting with a lease while building credit and cash flow makes the most sense.

What Should My Trucking Business Plan Include?

Your business plan should outline how your company will operate, the type of freight you’ll haul, your target markets, and your startup costs. A solid business plan should also cover your financial projections, steps to start operations, and your marketing strategy. This is a key requirement if you need to apply for a business loan or want to grow your business strategically.

What Permits And Licenses Are Required?

You’ll need to obtain several permits and licenses, including a USDOT number, Motor Carrier (MC) number, International Registration Plan (IRP) credentials, and IFTA license, depending on your operations. These license and permit requirements vary by state and by the weight and scope of your truck. If you're unsure whether or not you need specific documents, our team can help.

Can I Start A Successful Trucking Company with Just One Truck?

Yes, many trucking companies in the U.S. started with just one truck. The key to building a successful trucking company from the ground up is having a strong foundation: register your business, get your trucking authority, create a business plan, and ensure you’re covered with trucking liability insurance. From there, you can scale your new company as opportunities grow.

How Do I Finance My Trucking Company?

You can finance your trucking company through a business loan, factoring services, or equipment financing. Your credit score or business credit may determine which options are available. Some small trucking businesses also turn to the Small Business Administration for guidance or explore startup-specific financing tailored for truck drivers entering the trucking industry.

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