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4 Questions New Fleet Owners Always Ask
Jun 17, 2021

Have you been in the trucking business for a while, and now you’re ready to start a logistics company of your own? Are you brand new to the industry and want to know how to open a trucking company? Curious about what it takes to start a trucking company, what kind of insurance you need, or what sort of costs you should be anticipating before getting started? We’ve got you covered. With a history of helping fleet owners get their businesses off the ground, here is your simple guide—based on the questions we get asked daily.

Can you explain how to open a trucking company?

It takes more than just a few words to describe how to open a trucking company—which is why we wrote an entire blog on the subject. For a brief overview, though, the simple steps include:

  • Writing a business plan
  • Deciding on a business structure (LLC, partnership, corporation, etc.)
  • Obtaining the correct licenses and permits
  • Getting insurance

Sound like a hassle? Gold Star offers consultative services or full business set-up to make it simple.

What does it take to start a trucking company?

In addition to the necessary business documents outlined above, what it takes to start a trucking company is more than just paperwork. It takes a couple of assets, too:

  • Money. To start, it takes some capital — roughly $10,000 to $20,000 for most new trucking company owners.
  • A truck or trucks. You can start a trucking company with just a single truck (either owned, leased, or lease-to-own) or a full fleet. The vast majority of trucking companies have fewer than seven trucks.

What kind of insurance do I need to start a trucking company?

The kind of insurance you need to start a trucking company includes:

  • Primary liability that will cover any damages or injuries due to an at-fault accident. While the FMCSA only requires $750,000, most shippers & brokers request $1 million.
  • Cargo coverage covers theft and damage to the freight. The amount necessary varies depending on the cargo you’re hauling, but a standard amount is $100,000.
  • Physical damage insurance to cover any damages to the trucks where you are not liable.
  • Non-trucking use coverage covers liability in the event that your truck is in an accident when not hauling cargo for a client.

Some argue that a trucking company should have several other types of coverage in place, including cyber insurance.

What costs go into opening a trucking business?

The costs that go into opening a trucking business can vary based on state and company specifics. Here is a rough outline of the expenses you can anticipate if you decide to start a trucking company:

  • Filing fees for the registration, documentation, and licenses necessary to open a company
  • Insurance down payments (per truck)
  • IRP (per truck)
  • Heavy vehicle use tax obligations (per truck)
  • Other tax obligations (per truck)
  • Leasing or purchasing a truck or fleet

In addition to these start-up expenses, you will also need to pay for fuel, maintenance, labor, and marketing to keep your trucking company moving

How Can Gold Star Help Me Start a Trucking Company?

Gold Star has been in the business for years, and we offer a variety of services to help everyone, from new owners to long-time trucking professionals. We offer consultative services like business set up, ongoing coaching, and limited coaching sessions. We can help get your company moving with an Amazon set up. And once you’re ready to start, our dispatch services make it easy. Ready to get started? Give us a call or fill out our web form today.

Your Guide to the Amazon Delivery Service Partner Program

17 Jun, 2021
It’s impossible to think of the trucking industry without considering Amazon. In 2019, the company delivered 4.5 billion packages in the United States . Their Amazon Delivery Service Partner Program enables anyone with some startup capital the opportunity to get involved in their massively successful business venture. There are pros and cons to becoming an Amazon DSP, but the steady stream of work is certainly eye-catching to start-up trucking companies. Amazon lays out some of the most important information , but let’s take a look at some frequently asked questions.

Your Guide to DOT Background Check Requirements for Drivers

17 Jun, 2021
A thorough, compliant background screening program for your drivers should be the backbone of your hiring strategy. Background checks ensure that your new drivers have all of the qualifications necessary to do the job well and to best represent your company out on the road. Background checks also, of course, weed out any drivers with disqualifying criminal histories, a history of driving violations, and substance abuse problems. That’s why they should be a standard part of your fleet safety program anyway (link to “Fleet Safety Program: 4 Important Things to Remember”). In our regulated industry, a DOT background check is required. Here’s how DOT background check requirements differ from standard employment screening.

Will Truck Driving Be Automated?

17 Jun, 2021
It’s the question on the minds of truck drivers, owners, and delivery companies everywhere: will truck driving be automated? Automated trucks have been a conversation point for years now, with many worrying that technology advances will put millions of people out of work. Despite these concerns, the U.S. Bureau of Labor Statistics predicts 5% growth for trucking employment in the coming years. While other industries struggle to adapt to new technology, the trucking industry is greatly benefiting from it. There are a range of opinions when it comes to this question, though most truck drivers seem confident that their jobs can’t (or at least won’t) be done by machines any time soon. Before getting into the trucking industry, it’s important that you take a look at the landscape and make an educated decision about it—but remember there will always be a need to move goods from one place to another, and the explosion in online ordering suggests that need is only going to expand. Let’s take a look at the current state of automated trucks as we dive into the question: will truck driving be automated?

What Is Carbon Neutral Shipping & How Do Companies Become Carbon Neutral?

17 Jun, 2021
Trucking and logistics is no longer just about getting materials from point A to point B. Much like consumers want to buy their products from socially responsible corporations or boycott businesses that don’t align with their beliefs, many companies want to work with trucking companies that prove they care about the environment. Whether due to their personal beliefs, to the corporate responsibility goals they’re mandated to meet, or to a desire to please their own customer base, you’re serving clients who will ask about your carbon neutral shipping practices sooner rather than later. Now is the time to start taking this topic seriously. Do you find yourself asking “what is carbon neutral shipping anyway?” Are you wondering why carbon neutral shipping might be a benefit? Curious to know how companies become carbon neutral? Keep reading to discover the answers to all of your questions about this climate-responsible approach to business.

What Do I Need to Start a Trucking Company?

17 Jun, 2021
The trucking industry landscape is largely made up of small businesses—with over 90% of companies operating fewer than seven trucks—so there is room for you if you’re considering starting a small trucking business. Whether you’re a professional truck driver already or you’re just a prospective business owner looking to cash in on the projected growth in the industry, you can get on the road toward a successful business with our help. What do you need to start your own trucking business? Just a little bit of insight from Gold Star’s experts.

The Facts & Figures: How Much Does it Cost to Start a Trucking Company?

17 Jun, 2021
Are you ready to work for yourself? Find yourself wondering how much does it cost to start a trucking company? Some estimates anticipate between $10,000 and $20,000 to get started with a small trucking company, assuming you don’t have to factor in the average cost of a semi truck. What goes into the cost of starting a logistics company? Let’s take a look.
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