Blogs and Insights
How Do I Start a Trucking Company?
Having your own trucking business provides incredible freedom and control over your own operations. While starting a new business might seem a little overwhelming, creating a startup in the trucking industry is relatively straightforward. Here’s how to start your own trucking company.
1. Determine Your Business Type
Determine that type of business you are going to have and how you will manage it. The type of company and business model you choose will determine how you file your legal documents, complete taxes, obtain insurance, and get all necessary certifications to stay in complete compliance with all state and federal laws and regulations.
To get started, ask yourself the following questions:
- Will you be a self-employed owner-operator who both drives and manages the day-to-day business? Or will you be a business owner only, overseeing the major decisions and finances while leaving the driving to dedicated truckers?
- Will you transport materials only within a single state, or will you transport materials across state lines?
- What sort of materials will you transport? Certain freight, like hazardous materials, require special endorsements and additional insurance.
Once you have a better idea of your business plan, consider the exact business structure you want your company to have.
Common structures that successful trucking companies use include:
- Lease purchase – People with a lease-purchase model do not own the commercial vehicles in their fleet, instead renting or leasing them from someone else. Business owners may or may not eventually purchase the leased vehicles from the lenders. This model has lower startup costs but can be much more restrictive than outright owning vehicles.
- Sole proprietorship – Business owners with sole proprietorship owns and manages all trucks in their fleet, with the vehicles counting as both personal and personal assets. This model is relatively easy to start up and offers greater control, but it has higher upfront costs and unlimited personal liability for the owner.
- Limited liability company (LLC) – Sole proprietorship does not distinguish between personal and business assets. An LLC establishes businesses and owners as separate legal entities, with the commercial fleet and other business assets not counting as personal property. The primary benefits of LLCs are that people view them as more credible and they limit personal liability. LLCs have more legal requirements and paperwork, though, and also have more complex tax filings.
2. Create a Business Plan
Your trucking business plan is the blueprint for your business. It’s great for helping you better understand projected cash flow vs expenses, establishing your services, and pitching your company to investors if you need help with your down payment for your own trucks and other expenses.
Your business plan should include details like:
- Business name
- Executive summary
- Company description and structure
- Market analysis and strategies
- Services
- Financial projections
- Funding requests (if pitching to investors)
3. Get the Necessary Documents, Licensing, and Insurance
Small business owners looking to break into the long-haul trucking industry typically need the following:
- Trucks, either owned outright or leased
- Valid Class A commercial driver’s license (CDL)
- Appropriate endorsements for your intended freight
- Appropriate business license(s)
- Business bank account
- International Fuel Tax Agreement (IFTA) license(s) and decal(s) for most vehicles
- An International Registration Plan (IRP) tag if you plan to travel between the U.S. and Canada
- Unified Carrier Registration (UCR) filing for those travel across state or national lines
- USDOT number/business registration with the U.S. Department of Transportation (DOT)
- Appropriate truck insurance, which can include commercial auto liability insurance, general liability insurance, and cargo insurance
- BOC-3 process agent to file BOC-3 forms with the Federal Motor Carrier Safety Administration (FMCSA)
- Operating authority/docket numbers
- FMCSA-compliant electronic logging device
As of 2025, long-haul truck drivers in the U.S. do not need MC numbers.
4. Find Work
Once you have established your business structure, created your business, and filed all applicable paperwork, it’s time to get started finding work. Load boards are common ways for new businesses and entrepreneurs to find work; they match shippers with carriers.
Some of the most popular load boards for truckers in the United States are
- 123LoadBoard
- DAT
- TruckSmarter
- Truckstop
5. File Taxes on Time
U.S. law requires that owner-operators, as self-employed individuals, file taxes and International Fuel Tax Agreement (IFTA) reporting every quarter. Even LLCs and other businesses may be subject to tax filing more than once a year.
Taxes that truck business owners may be subject to include, but are not limited to, the following:
- Federal income tax
- State income tax
- Franchise tax
- Property tax
- Excise tax
- Employee tax
- Heavy Vehicle Use Tax (HVUT)
- Federal Highway Use Tax (FHUT)
FAQs
Do you need an LLC for a trucking company?
No, you do not necessarily need an LLC to start your own trucking business. You may also file your business as an owner-operator with sole proprietorship or another business category to legally begin your business.
Many people prefer LLCs because they tend to have better reputations than sole proprietorships and reduce liability. However, they can also be more expensive to establish and require more complicated paperwork and tax filings.
How profitable is starting a trucking company?
The profitability of a trucking venture depends on factors like planning, timing, and the type of freight hauled. That said, according to Truckstop, most truckers should plan for a profitability margin of 6% to 8%.
How do I finance my startup trucking company?
Options for financing a trucking startup include:
- SBA loans (Small Business Administration)
- Traditional loans through a bank or credit union
- Upfront cash
- Asset-based loans
What are the necessary permits and licenses to start a trucking company?
Licensing and permits can vary by state, whether you travel across national and state borders, the type of cargo you are carrying, and the exact type of business structure you have.
That said, you typically need the following items to get started:
- CDL
- USDOT number
- UCR filing
- IRP tag
- IFTA license and decal
- BOC-3 filing
- Relevant insurance
- State permits
How much does it cost to start up a trucking company?
On average, new companies can expect to spend between $10,000 to $30,000 to get started.
How can my trucking business save money?
Unsurprisingly, one of the largest expenses for trucking companies is fuel and vehicle maintenance. These expenses can add up quickly, making it hard for startups to stay ahead and break even. Fortunately, there’s an easy way to save money: fuel cards.
Fuel cards are specialty cards that truckers use to get special discounts on fuel and other expenses. And when it comes to fuel cards, Motor Transport Alliance stands apart from the rest. Our fuel card is ideal for small businesses and startups, offering perks like fraud protection, fuel savings, and tire discounts.
You can say goodbye to annual fees, annual contracts, and heavy paperwork when you partner with us too, because we want to make everything as simple for you as possible.
Disclaimers: This article is for informational purposes only and does not constitute legal or financial advice, real or implied. Readers are responsible for ensuring complete compliance with all applicable laws and regulations.