What Do I Need to Start a Trucking Company?
June 17, 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.
What Do I Need to Start a Trucking Company?
Much like starting any kind of business, starting a small trucking business requires a plan and a series of licenses and permits. Here are the basic steps you’ll want to follow:
- Put together a business plan. Write a business plan that explains what your company is and why you’ll be successful. This is where you specifically outline the problem your business solves, the buyers you will go after, and the advantages of using your company over the competition. With that in mind, you’ll also use your business plan to pin down what the industry looks like right now, how you will work with your target market, and how you plan to fund your new venture. The Small Business Administration is a helpful resource for this step.
- Decide on a business structure. Most trucking businesses will be either a sole proprietorship, a partnership, a limited liability corporation (LLC), or a corporation. Consider meeting with an accountant to make this decision because the benefits and detractors of these business structures vary by state. If you opt for a corporation or LLC, you’ll need to appoint a registered agent to act as your official point of contact for the secretary of state, and you will need to obtain an employer identification number (EIN) in order to open a bank account and file taxes
- Obtain necessary licenses and permits. There are tens of thousands of filing requirements depending on where you are in the country. Where you’re located and what services you provide will impact what licenses and permits are required for your business. To start, you will likely need, at least, a commercial driver’s license (CDL), a USDOT Number, a Motor Carrier Operating Authority (MC number), and (if you’re providing service across multiple states) International Registration Plan (IRP) credentials and an International Fuel Tax Agreement (IFTA) decal.
- Select the right insurance. All businesses come with liability, and starting a small trucking business is no different. Though the FMSCA only requires $750,000 in primary liability coverage, you’ll find that most shippers and brokers will require at least $1 million. You will also need cargo insurance of about $100,000, physical damage insurance in the event of an accident in which you are not liable, and insurance for non-trucking use in case your truck is involved in an accident during off times.
How Can Gold Star Help Me With Starting a Small Trucking Business?
Starting a small trucking business might seem like a hassle, but at the end of that road is a lucrative business that allows you to work for yourself. To make your trucking business dreams a reality—and to ensure you take all of the proper steps to keep your company in compliance, safe, and set up for success—Gold Star offers consultation service. From full-service business set up to a 90-day coaching program to a 1-hour consultative session, Gold Star’s consulting services meet your every need.
Reach out today and let’s get you on the road.
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.
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.
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?
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.
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.
As a big supporter of managing a fleet of well-maintained, safe trucks (link to Fleet Safety Program: 4 Important Things to Remember), Gold Star looks forward to the International Roadcheck every year. This three-day event focuses on motor carrier, vehicle, and driver safety. In 2021, it will run from May 4th to May 6th. The Commercial Vehicle Safety Alliance (CVSA), a nonprofit organization made up of motor vehicle safety officials and industry representatives, leads the cause. Over a 72-hour period, tens of thousands of commercial vehicle inspections will occur across the continent. It is the “largest targeted enforcement program on commercial motor vehicles in the world,” boasting that “nearly 15 trucks or buses [are] inspected, on average, every minute across North America” during the event (per the CVSA website ).