September 27, 2017
How To Get Your Trucking Company Started [Updated 2021]
Tired of working for big trucking companies that don’t treat you like an individual? Are you ready to start your own business and be your own boss? First, build a plan, then get the resources you need to succeed. Don’t let the paperwork slow you down!
To start your own trucking company, you must:
1. Start with the business details
Decide what you want your business to do, and write down how you’re going to make your business a reality. Think about what you want to name your business, as a catchy name can actually increase your chances of companies choosing to work with you again.
You can also plan your finances and resources to determine how much money you need to start your business. Once you get those resources, how you are going to budget those finances? We recommend reading our blog on how to finance your trucking company and using our start-up cost calculator to determine how much you can afford.
2. Register your business
Once you’ve gotten the logistics of starting your business out of the way, it’s time to register your business. The Small Business Administration has helpful resources like these 10 steps you can take to start your own business. When you register your business, you can choose to register your business as a sole-proprietorship, a Limited Liability Company (LLC), or a Corporation (Inc). All of these options can help you determine starting costs, taxes, and whether you are operating as an individual or a company.
3. Obtain proper trucking registration
The next step towards opening your own trucking company can be a little complicated. Regardless of what kind of trucking business you want to run, you will most likely need a DOT Number and your Motor Carrier Authority. From there, you have to decide what your trucks will deliver, where they will be delivering to, and the weight of your trucks. These are all factors in what registration and licenses you have to get.
This is where we can come in. When it comes to navigating all the ins and outs of the Federal Motor Carrier Safety Administration’s rules and regulations, we’ve got you covered. We can help you get your trucking authority, and also help manage the rest of the paperwork, such as the Unified Carrier Registration and preparing for the new entrant safety audit (a guaranteed inspection for any new motor carrier).
4. Determine how you hire your employees
There are two ways you can choose to run your business. You can either hire sub-contractors as your drivers or you can hire your own employees. Each choice comes with different advantages and disadvantages. Hiring sub-contractors can keep your starting costs low, but hiring sub-contractors gives you less control over your business. Hiring your own employees increases starting costs but can eventually lead to a higher return on profits.
Hiring a bad fit can be detrimental to your business, so following hiring best practices can be crucial. We cover more about finding a good fit in our podcast Haulin Assets.
5. Get insured
Once you’ve obtained or are in the process of obtaining the proper authority, you’ll need to find an insurance company. It’s important to choose the right insurance company for your company. Find an agent that specializes in trucking insurance to make sure that you get adequate coverage. And remember, this is a big investment, so make sure you’re prepared to make the down payment.
Read More: How To Purchase Commercial Truck Insurance
How Do I Get Started?
If these steps look daunting and confusing on your journey to start you own trucking company, they probably are. There are a lot of decisions to make, and each decision determines which steps you need to take to become your own boss. That’s why we started our podcast Haulin Assets, where we walk through each of these steps in depth. Subscribe today and start listening from episode one to see exactly what you need and how much it costs.
Then, when you’re ready, talk to the coaches at Motor Carrier HQ to apply for your trucking authority. We can get you your MC and DOT Numbers with in an hour! We work directly with you to sort through what you need and don’t, so you don’t waste time and money on licensing your company doesn’t need.