How to start a trucking business

How to start a trucking business, step by step

1. 01

   Decide: own authority or leased on

   You can haul under your own operating authority, finding loads and carrying your own insurance, or lease your truck onto an established carrier and haul under theirs. Your own authority means more of each load's revenue stays with you, along with all the paperwork, insurance and cash-flow risk in this guide.

   Pick your freight before you file anything, because it sets your equipment, your insurance level and the authority you need. Dry van, reefer, flatbed and hotshot are different businesses with different brokers, rates and buyers.

2. 02

   Get a USDOT number

   FMCSA requires a USDOT number if your vehicle has a gross vehicle or combination weight rating of 10,001 pounds or more and operates in interstate commerce. Some states also require one for intrastate carriers. There is no charge to get a USDOT number.

   Registration now runs through Motus, FMCSA's new USDOT registration system, and new registrants must pass an identity verification check. Make sure your business name and address match your state filings exactly, since FMCSA warns that any mismatch delays your authority.

3. 03

   Apply for MC operating authority

   For-hire carriers hauling federally regulated freight owned by others need operating authority, often called an MC number, in addition to the USDOT number. FMCSA charges a one-time, non-refundable $300 fee for each authority. Common and contract carrier authority for property count as one type, so they share one fee.

   FMCSA says new applications may take 20 to 25 business days, or eight weeks or longer if flagged for review. Use that wait to line up insurance, your process agent and your state registrations.

4. 04

   File your BOC-3 and insurance

   Only a process agent can file Form BOC-3 for a motor carrier. It names someone in every state who can receive court papers for you. FMCSA lists blanket companies that cover all states in one filing; one such filer, FCCR, charges $99 for a BOC-3 that stays valid for the life of your authority.

   Your insurer files proof of coverage with FMCSA. The federal minimum for for-hire general freight in trucks of 10,001 pounds or more is $750,000, and $1,000,000 for oil and many hazardous materials. If the filing isn't in within 20 days of your application's publication, FMCSA warns it will dismiss the application unless you comply within 60 days.

5. 05

   Register for UCR, IRP and IFTA

   The Unified Carrier Registration fee is $55 a year for carriers with zero to two vehicles, rising to $167 for three to five. Apportioned plates come through the International Registration Plan in your base state; in Texas, IRP fees are based on the share of miles your fleet runs in each jurisdiction.

   IFTA lets you file one fuel tax report for travel across states and Canadian provinces, with returns due quarterly. If your truck's taxable gross weight is 55,000 pounds or more, you also file IRS Form 2290; an 80,000-pound truck pays $550 for the year, and states need proof of payment to register it.

6. 06

   Set up drug and alcohol testing

   FMCSA requires every owner-operator to work with a consortium or third-party administrator to run a drug and alcohol testing program. Employers of CDL drivers must also buy a Clearinghouse query plan, at $1.25 per query, and query each driver before hiring and at least once a year.

   Sign up with a consortium before your first load, and keep your pre-employment test result with the rest of your compliance records, where you can find it if FMCSA asks.

7. 07

   Find freight and look legitimate

   Many new carriers start on load boards and with freight brokers, then build direct relationships with shippers on lanes they run often. Brokers and shippers check your authority, insurance and safety record before giving you a load, so keep every filing current.

   A simple site helps shippers check you out. Replo builds one with your lanes, equipment, USDOT and MC numbers, insurance details, safety record, and a quote request form asking for pickup, delivery, weight and dates. Replo doesn't run a load board, dispatch trucks or send invoices.

What it costs to start a trucking business

Federal and state filings for one truck hauling general freight, before you buy or lease the truck. Leasing onto a carrier skips most of these.

Your first 30 days

1. Week 1

   Pick freight and register

   • Choose your freight type, equipment and the lanes you want to run.
   • Form your business and get a free EIN from the IRS.
   • Register in Motus for a USDOT number and apply for MC authority.
   • Request truck insurance quotes that meet the $750,000 federal minimum.

2. Week 2

   File agents and insurance

   • Hire a blanket process agent to file your BOC-3.
   • Bind your policy and have the insurer file proof with FMCSA.
   • Join a drug and alcohol testing consortium and take your pre-employment test.

3. Week 3

   State registrations and tax

   • Pay your UCR fee for the current registration year.
   • Apply for IRP plates and an IFTA license in your base state.
   • File IRS Form 2290 if your truck weighs 55,000 pounds or more.
   • Launch a site with your USDOT and MC numbers and a quote form.

4. Week 4

   Line up freight

   • Check your authority status on FMCSA's licensing and insurance site.
   • Set up broker carrier packets so you can book as soon as you're active.
   • Call ten shippers on your planned lanes about direct freight.

Build your trucking company site

Frequently asked questions

How much does it cost to start a trucking company?

Federal and state filings, the BOC-3 and heavy vehicle use tax come to about $1,000 for one truck, based on our table. Insurance averages about $926 a month for new for-hire transport policies at Progressive. The truck itself is the biggest cost on top.

Do I need my own MC number to start trucking?

Only if you haul regulated freight for others under your own authority. You can lease your truck onto a carrier and run under their authority instead. Your own authority costs $300 per type at FMCSA and requires a BOC-3 and insurance filings.

Can I start a trucking business with a pickup truck?

Yes, often called hotshot trucking. If your truck and trailer are rated at 10,001 pounds or more and cross state lines, FMCSA requires a USDOT number, and hauling others' regulated freight for pay needs operating authority and insurance filings too.

Is trucking still worth it?

It can be, with tight cost control. The BLS projects heavy truck driver jobs to grow 4 percent over its ten-year outlook, about average, with a median of $28.19 an hour. As an owner, your profit depends on rates per mile, fuel, insurance and empty miles.

Do I need a CDL to start a trucking company?

You need one to drive a heavy truck yourself. The BLS says heavy and tractor-trailer truck drivers must have a commercial driver's license. If you hire drivers instead, each needs a CDL, and you must query each one in the FMCSA Clearinghouse.