How to Start a Trucking Company
Starting your own trucking company can be overwhelming, but the rewards are worth it. The process takes a some time and effort. Truckers businesses services can be used to avoid some pitfalls and frustrating, time consuming tasks of working with the state and federal governments.
1.The first thing you will need to do is decide if you want to be a Corporation, a LLC, a DBA or just operate in your own name.
2.Have you bought your tractor? Unless you
already know for who and what you are going to haul, you can start with just the tractor.
3.Think of a name for your business.
4.Do you have a CDL .
5.Do you have experience?
6.Start up cost can run as much as $10,000. and don’t forget will need 3 months income saved to live on until the checks start rolling in.
7.Many of these things you need can be purchased through a permitting service. You will be surprised how inexpensive and helpful a good permit service can be. Find a local truckers handout and ask who does a good job. Trust me, these Knights of the Road can be very helpful. Make sure they are not a company driver and are self employed like you want to be and get a referral.
How you answer these questions and what you do next will determine your success. Truckers breaking away from a company or leased driver agreement have an advantage over the first timer.
Once you have your trucking company name decided, you need to get it registered in your state of residence. This can be done in as little as one day in some states to several weeks in others. You need to get your Federal ID Number for your company. This is an absolute requirement. You should not use your social security number as your Federal ID number unless you are willing to accept the risk of identity theft.
The next step is to obtain your ICC Permit or FMCSA Authority. You will need to purchase Insurance while applying. The FMCSA requires you to provide proof of financial responsibility of at least $750,000. So unless you have $750,000 laying around to give the Feds, buy an insurance policy from a known truck agent and the insurance company will send the Feds a BMX-91 filing showing financial responsibility, DOT Number, Unified Carrier Registration (UCR), International Fuel Tax Agreement (IFTA) which allows you to purchase fuel, not pay the taxes at the pump and pay them quarterly and any other trucking permits you may need.
From start to finish this can be done in about 2 weeks .
Please make sure you buy insurance from a truck insurance specialist. Also research your permit service.