How to Start a Trucking Company
Starting a business can be challenging. The process can feel unclear and overwhelming at times. While running a trucking company requires time, effort, and patience, the benefits of working independently often outweigh the obstacles.
This is why many people are taking the leap and seeking help from companies like Federal Carrier Compliance Registration (FCCR) to handle the legal filings and compliance requirements needed to get started.
How FCCR Can Help
FCCR specializes in taking care of the necessary paperwork for new trucking businesses. They can handle tasks such as:
- Registering a USDOT number.
- Setting up an LLC for your business.
- Obtaining an EIN from the IRS.
- Filing for state-specific permits and public utility filings.
- Ensuring compliance with federal and state regulations.
These requirements, mandated by the USDOT and FMCSA, include:
- Driver qualification files.
- Drug and alcohol testing programs.
- Unified Carrier Registration (UCR).
- BOC-3 filings
- And more.
Many new trucking business owners find it worth the investment to have professionals like FCCR handle these steps. This makes the process easier, faster, and more manageable for beginners.
Create a Plan and Strategize
When starting a trucking business, it’s essential to have a clear plan. Simply buying a truck and registering for a DOT number isn’t enough. Planning ahead, asking the right questions, and strategizing will greatly increase your chances of success.
Pros and Cons of Starting a Trucking Company
Pros:
- Flexibility to choose your schedule.
- Higher earning potential—three to six times more than driving for someone else.
- Creative control over how your business operates.
- The ability to hire drivers and grow your business.
Cons:
- Covering repair costs when something breaks.
- Managing legal, state, and federal compliance requirements.
- Dealing with the stress of running your own company.
Working with FCCR can reduce the stress of meeting compliance requirements, allowing you to focus on the parts of the business you enjoy.
Key Considerations Before Starting Your Trucking Company
Here are a few important things to plan before you decide to leave your job and become an independent operator:
- Finances – You will need capital finance to cover the costs of the truck/trailer and the costs associated with registration and licensing. For this reason, you will also need to consider where to secure this line of credit and save money to cover as much of these costs as possible.
- Business Plan – A business plan outlines your expected expenses or revenue. Any business is vulnerable and far less likely to succeed without a business plan.
- Licensing – As mentioned above, you must acquire a commercial driver’s license. This training program will also cost money, and licensing is mandatory for anyone who wants to start a trucking business. If you already have your CDL you are ahead of the game.
- Insurance – According to law, you must have $750,000 primary liability coverage, and some shippers/brokers require $1 million or more. That being said, you will also need cargo insurance and any physical damage to the actual truck. Insurance is often the most expensive aspect of a start-up trucking company.
- Lease – You can choose between various types of leases. For instance, a full-service lease will cover taxes, permits, and maintenance. Meanwhile, a lease-purchase plan is for those who might not have a decent credit history.
Questions to Ask Yourself Before Starting Your Trucking Company
There is no end to the questions that you should be asking. After all, the more questions you can ask, the more certainty you will have moving forward. That being said, here are some of the most common questions that you might want to consider:
- Where will you park your truck(s)?
- Who will you employ to drive the trucks?
- Who will handle vehicle maintenance?
- Who will take care of accounting, invoicing, and other paperwork?
- How will you find and load cargo?
- What laws and regulations, both state and federal, apply to you?
That said, let’s take a look at some of the regulations that apply.
What Regulations Apply to Me?
- Operating Authority – You need authority from the Department of Transport to move goods across state lines.
- Heavy Vehicle Tax – Does your truck weigh more than 55,000 lbs? You will need to pay tax.
- BOC-3 – You will need to appoint an agent in each state where you have an office for the business.
- USDOT Number – You must acquire this number from the Department of Transportation. The USDOT is used to monitor company safety etc.
- IFTA Decal – If you intend to drive between multiple states, you must have a decal for the International Fuel Tax Arrangement (IFTA).
While this is not an extensive list of regulations, these are some of the most important to keep in mind.
Why FCCR is Worth Considering
Handling these compliance requirements on your own can be time-consuming and confusing. FCCR simplifies the process by:
- Determining exactly what you need based on your state and business type.
- Assigning a personal agent to guide you through the process.
Starting your own trucking business isn’t for everyone, but with the right plan and support, it can lead to financial independence and career satisfaction. The decision is ultimately yours to make—is it worth it?
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