Not only that, it’s projected that the trucking industry will grow by 27% in 10 years. That means now is the best time to invest in this business if you want to reap the biggest profits in just a few years.
Going independent isn’t easy — it can be overwhelming and intimidating, but it’s also empowering for truckers. Here, we break down the first steps to set you up for success.
A successful trucking business is founded on a solid and realistic business plan. This is intended to map out your financial goals and the pace of your company’s growth.
Once you have a plan, it’s time to take action. The next step is to structure and officially register your trucking business. This is a highly regulated industry, which means starting a trucking business entails a list of requirements.
First, you can register as a Limited Liability Company (LLC), corporation, partnership, or sole proprietorship. You must also obtain an employer identification number (EIN) for tax purposes and to open a business bank account.
Compliance is crucial to avoid any hiccups in your trucking business. You need to secure permits, licenses, and authority from the U.S. Department of Transportation (DOT), the Federal Motor Carrier Safety Administration (FMCSA), the Internal Revenue Service (IRS), and other concerned agencies.
All paperwork must be accomplished before you start looking for loads or clients. This way, your new company won’t face penalties or legal complications.
Next, you need to get the first truck for your business. You can explore many commercial truck financing options if you wish to buy your own vehicle.
If you don’t have the budget for a truck down payment, you can also lease it from a carrier.
When choosing a truck to buy or lease, always consider the needs of your cargo and the type of load you’re accepting. Always compare your options and assess which one between leasing and buying is best for your business.
Knowing how to start your own trucking company includes understanding the industry’s potential hazards. This is where insurance coverage comes in. It protects you, your company, your drivers, and your clients from liabilities.
Most owner-operators will secure primary liability, physical damage, cargo, and passenger accident insurance. You can also acquire more policies, depending on the load and nature of your trucking business.
Contact a trusted agent to help you compare your options, so you’ll get the best premium on your policy.
Keeping your business finances in order is crucial for your company’s sustainability. You need to track your income and expenses to see how much money you bring into your business.
Expenditures are challenging to monitor in the trucking industry since invoices take weeks to get paid. Also, drivers will incur expenses along the way, which need to be documented properly.
The good news is you don’t have to go through this alone. Factoring Express can be your partner if you need reliable truck accounting services.
Subscribing to a load board will connect you to brokers, shippers, and clients in every state. It includes details such as distance, load weight, access rate, and location in one place.
But if you don’t have time to screen potential clients on your own, you can tap the help of Factoring Express. We have truck dispatch services to help you find reputable and high-paying clients quickly.
With us, you’ll get free credit checks, complete paperwork, and factoring once you deliver the load. You can also avail of our accounting services to streamline your operations.
Your job doesn’t stop when you hit the road and deliver the load. You should also stay in the loop of new rules and regulations in the trucking industry that may affect your business.
You must keep up with time-sensitive tax filing schedules, permit renewals, payments, and reporting. This way, your business will remain on track, allowing you to focus on accepting more clients.
If you’re worried about tax penalties, Factoring Express can help you. We have a team of accountants, bookkeepers, and tax preparers who will complete the needed paperwork. You only have to review and submit the documents to your accountant – that easy!
Delta Group Inc.
I was signed up with another factoring prior to Factoring Express and it was the best change I have made. Their app is very easy to upload your bills and keep track of what was already purchased. Great experience overall.
Alexander P.
Been with them for three years. Service is great. We don’t have to worry about collections, their team handles it.
Katie Cheb
Factoring Express is by far one of the best our company has ever used! GREAT communication and they address outstanding issues quickly! Working with them is extremely easy and hassle free, you get your invoices paid instantly and without any issues!
Raul Gutierrez
Our experience with Natan and the team at Factoring Express could not have gone any smoother. Everyone we have dealt with at Factoring Express has been extremely professional and knowledgeable. I cannot imagine going with any other company!
Felix Munguia
It’s so nice to have a factoring that supports your business the way factoring express does, payments are always done on time, fuel advances when need it and not many factoring give you fuel advances , to us it’s been the right Choice and we highly recommend!
Spartansep, Inc.
Love Factoring Express and their team. Always professional and willing to assist with whatever you need.
Very smart and knowledgeable team.
Colleen Brion
Evalyn Thurstan
How much capital do I need to start a trucking company?
Expect to shell out $10,000 to $20,000 when starting your trucking business. This includes the down payment for your first truck, insurance costs, registration fees, and other setup expenses. The actual price depends on your business plan. If you want a more accurate estimate, call us, and our team will help.
Can I start my trucking company with just one truck?
Yes! You can start running your own trucking business with just one truck. You can grow your business from there and add more vehicles to your fleet. Whatever fleet size you plan to start with, the steps remain the same.
Is owning a trucking company profitable?
Trucking businesses are very profitable, with owner-operators earning at least $300,000 in gross sales annually. The larger the fleet, the higher the income will be. Just note that your company’s level of expenses will affect how much net profit you will take home.
What trucking load gets paid the most?
Hazardous materials and oversized loads often get the highest payout due to their dangerous nature. The same goes for ice road truckers who have to deal with harsh road conditions.
How long does it take to get my operating authority?
The FMCSA will issue your operating authority within 20 days after you complete all the needed paperwork. Aside from operating authority, you also need to secure a state registration, which usually takes around 2 to 3 weeks.
Where can I get my clients/loads?
Owner-operators often use load boards to find shippers or brokers who need drivers. You can also work with dispatch services like what Factoring Express offers if you want high-paying loads with free credit checks.
