How To Start Your Own Trucking Company

In the United States and beyond, the demand for trucking is greater than ever. If you're looking at becoming a business owner in this arena, launching a trucking company might be an excellent move for your career. Still, starting a venture of any kind requires careful research, and trucking company startups include a few non-negotiable requirements of their own. 

Learn how to start your own trucking company in this helpful guide. Follow the tips below, and if you’d like to minimize some of the stress involved, come to FMCA Filings for help completing your USDOT number registration and much more.

Step 1: Write a Business Plan That’s Detailed Enough To Hand To a Bank

Every prospective business owner needs to draw up a comprehensive plan for their new company to get off the ground. This is the first and most important step, and this business plan should cover all of the logistics and strategies you will develop for success. 

For example, a great preliminary plan for your new trucking business should include the following:

• Why you’re starting the business
• What you hope to achieve long-term
• How much capital you’re putting into the business
• Any additional funding you need
• The permits and other paperwork you will need to acquire or complete 
• Any cost projections
• The profit you anticipate making in Year One, Year Two, and so on

Drafting this comprehensive business plan gives you a clear picture of how your company will need to run day to day. If you're wondering how to start your own trucking company and then realize you'll need a small business loan, it’s best to start working on your business plan right away. Lenders require a thought-out business plan with your loan application. 

Step 2: Choose a Unique Name For Your Trucking Enterprise and Intended Cargo, Location, or Mission

Is your new trucking company’s business plan complete? Decide on a name for your brand that conveys your services to customers. It should be relatively easy for them to remember so that your brand can build momentum quickly.

It’s also important to ensure that the name you have in mind isn't already taken. Research existing trademarks and patents, as well as websites, to see if your business name is viable.  

Step 3: Register Your Business Without Missing a Step

Is your preferred company name available? It's time to register your business and submit the paperwork, which can be exceptionally complicated. 

One of the most common types of trucking company registration choices is a limited liability company. For trucking professionals, LLCs are attractive because the setup protects your own personal assets with those of any business partners you bring in. Incorporating as a limited liability company has a unique process depending on the state, but it primarily requires the following:

• Personal documentation (about you and other owners) 
• Tax identification information
• General business agreement

Step 4: Acquire Appropriate Permits and Insurance

If you ask an expert how to start your own trucking company, they'll emphasize licenses, permits, and insurance. For a safe and legal operation, it’s best to sign up for trucking insurance policies that fit your business's needs, such as cargo and commercial liability insurance. 

Almost all states require a trucking business license to operate within state lines. The trucking industry also requires additional permits. For example, the U.S. Department of Transportation and Federal Motor Carrier Safety Administration mandate the following:

• Get a USDOT number.
• Get a valid state license plate for commercial vehicles.
• Get a Standard Carrier Alpha Code (SCAC) 

Step 5: Invest in Vehicles and Other Equipment Wisely

Every trucking company needs a heavy-duty vehicle, so how do you find the right truck for your particular business needs? 

• Extensively research your options.
• Conduct test drives whenever possible. 
• Don’t settle for a truck that doesn’t meet all of your preferences.
• Calculate the costs of purchasing or loans and operating the truck.
• Consider the comfort level.
• Be specific about the weight limits. 

It’s also helpful to consider the distances you're planning to cover daily, weekly, and monthly.

Step 6: Secure Funding

If you're looking to launch your business, outside funding might be essential. However, besides the cost of assets, learning how to start your own trucking company also means taking care of the administrative costs. Permits, registration, and equipment also cost money. 

Why not apply for a small business loan or commercial truck financing? Eventually, operating a successful trucking company can be lucrative. However, everyone has to start somewhere. 

More Expert Guidance for Truckers and Business Owners

That’s how to start your own trucking company. Being a business owner in the trucking industry can make for a fulfilling, successful career with the right steps. 

FMCA Filings’ online agents can also help you comply with federal and local trucking regulations, including updating USDOT information, reactivating MC numbers, and more!