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January 29, 2018

How To Use Your Tax Refund To Start Your Trucking Company [Updated 2020]

Once you’ve gone through the hassle of filing your taxes, you may be eligible for a tax refund.

If you have a little bit of cash from your tax refund, why not put it to use and start your own trucking company? Using your tax refund is one way to finance your trucking company, and it’s the perfect time because it’s often money outside of your usual budget and provides the necessary cash flow for the upfront costs.

Here are the expenses you can expect to pay to start your trucking company:

Motor Carrier Authority – $499

Our new motor carrier authority package includes:

  • FMCSA Filing Fee – $300
  • MC Number and USDOT Number
  • BOC-3 Processing Agent – FREE with Motor Carrier HQ

Intrastate DOT Number – $99 (Optional)

You only need your intrastate DOT Number if you’re planning on running one state. Check out the difference between an interstate and intrastate DOT Number to see if your trucking company may need one.

Truck – $1,000 – $2,500 per Month

The final cost of the truck can vary from anywhere between $15,000 to $175,000. You can compare costs of your truck of choice by downloading our free spreadsheet.

Many semi trucks in a parking lot

Trucking Insurance – $2,000-$5,000 Down Payment

The cost of insurance changes depending on insurance provider, trucker experience, miles driven, and model and year of truck. Learn more about how to get commercial truck insurance.

Unified Carrier Registration (UCR) – $130+

Motor Carrier HQ can take care of filing your UCR based on the number of trucks in your fleet.

  • 0-2 trucks: $130
  • 3-5 trucks: $290

Business Registration – $50 – $800

Each state has a different registration rate. If you’re looking to start an LLC in Utah, it will cost around $70.

Ready to Get Started?

As part of our podcast Haulin Assets, Chris Vernon started his own trucking company and documented all the costs. Compare his costs to how much it could actually take.

Plus, you can plug in your own numbers in our free start-up cost calculator.

If your tax refund is just that extra push you need to fund your company, what are you waiting for? Take the leap and get started! You don’t have to start your trucking company alone. Motor Carrier HQ can sort through all the paperwork to save you time and money so you can become your own boss and get on the road! Just contact our coaches to get started!

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Learn More About What You Need To Start Your Trucking Company

When starting a trucking company, it can be confusing to decide what you need (or even what you don’t) to start your company. Here’s more information about each expense and why you need them to start your new business.

Motor Carrier Authority

The USDOT Number and MC Number allow your company to haul loads commercially. If you’re planning on becoming an independent owner operator that hauls loads in more than one state, you’ll most likely need this. Here are 10 things you should consider before applying for your motor carrier authority.

Intrastate DOT Number

If you’re only planning on running your business in one state, you may need an intrastate DOT Number. This allows you to legally haul loads in the state that you applied for. Give us a call to determine whether or not you need this one.

Buying or Leasing a Truck

The truck you choose is one of the biggest expenses of starting a trucking company. The better the truck, you’ll likely have lower maintenance costs, but it’s a higher upfront cost.

When deciding which truck to get, there are a number of choices you can make that affect the cost of your truck. You can choose to buy a used truck, which means you’ll be in it for the long-haul. Your credit score greatly affects how much a loan will cost to cover the truck.

You can also choose to lease a truck. By leasing a truck, you are “renting” it under a contract. If you want to keep the truck after your contract is over, some truck leases allow you to buy the truck. There are advantages and disadvantages to each option.

Listen to episode 5 of Haulin Assets for more info about buying a truck.

Trucking Insurance

If you’re running your own trucking company under your own operating authority, you are required to have trucking insurance before you can even start taking on loads. Trucking insurance is expensive, so it’s important to get the right coverage.

If you’re operating under your own authority, insurance will most likely be more expensive, especially if you only recently got your authority. The cost also changes based on the experience of your drivers, too.

We cover this topic more extensively in episode 9 of Haulin Assets.

Unified Carrier Registration (UCR)

This cost is just one of the many fees if you’re running your own trucking company under your own operating authority. However, the cost of filing for UCR changes. You can get updates from the official website.

Business Registration

This cost varies depending on the state you’re registering in and how you register your business. You can choose from a variety of business structures, such as a corporation or a sole-proprietorship. It is a necessary cost, though, as it is part of the requirements you need to get to legally run your business for a profit.

You can listen to episode 2 of Haulin Assets for more information on how to register your business.

Other Expenses

There may be other expenses you need to worry about, like drug and alcohol testing or assistance with the new entrant safety audit. If you have any other questions about expenses necessary to get your company up and running, work with the business coaches at Motor Carrier HQ. We’re always ready to help.

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