Have you been affected by a disaster?
APPLY FOR DISASTER LOAN Close
SBA News and Views

Blogs.SBA News and Views

Register

Starting a Trucking Business

Comment Count:
105

Comments welcome on this page. See Rules of Conduct.

Starting a Trucking Business

By JamieD
Published: July 13, 2010 Updated: September 26, 2016

Due to the growing marketplace, is a common necessity for commercial goods and products to be moved to a new city or state. This need creates a great opportunity for new transportation businesses and as a result the trucking industry is an extremely competitive field. Because the competition is steep, save yourself time, money, and energy by thoroughly researching the industry before you jump in. If yo-re considering opening a trucking business, use this guide to help you get started.

 

Determine how your trucking business will operate.

Trucking businesses operate by bidding on and fulfilling transportation accounts and contracts. Most trucking businesses usually operate in one of two forms- the difference lies in how they acquire drivers to fulfill their accounts and contracts:

  • Sub-contracted drivers: Under the first option, you run your business using sub-contractors as drivers. Although you, as the business owner, run the business and receive the contracts, your drivers are not actually employed by your company. This option cuts down on start-up costs, insurance costs, and required equipment. On the other side, this option gives you less control over your drivers and cuts into your profits.
  • Privately-owned drivers: Under the second option, you privately run your business and all operations. You use your own equipment, pay higher insurance prices, and hire a fleet of private drivers as employees. This option gives you total control over your business and its employees, and promises the most return on profits. On the downside, this option requires a great deal more start-up capital and operating costs.

 

Follow the traditional steps to starting a business.

As with any new business venture, first understand the basics of starting a business, and then research the additional steps specific to your field. After yo've determined what type of trucking business yo'd like to start, follow these 10 Steps to Starting a Business for more information on financing your business, hiring employees, and complying with tax obligations.

 

Comply with all trucking-specific business licenses, permits, and forms.

In addition to the general federal and state requirements, there are tax, license, and permit regulations that apply specifically to the trucking industry. Depending on the type of trucking business you plan to run, several important requirements may include:

  • Federal DOT Number and Motor Carrier Authority Number' Understand your requirements and apply for these certifications online at the Federal Motor Carrier Authorit's website.
  • Heavy Use Tax Form (2290)' Comply with tax regulations related to the heavy use of U.S roads with IRS Form 2290.
  • International Registration Plan (IRP) Tag' Understand your requirements and obtain IRP tags by visiting your stat's transportation website and their IRP portal.
  • International Fuel Tax Agreement (IFTA) Decal' Understand your requirements and obtain IFTA decals by visiting your state's transportation website.
  • BOC-3 Filing - Use a processing agent and the BOC-3 filing option to secure and maintain active operating status.

In addition to these operational requirements, if you chose to employ private drivers, they'll need to obtain special drivers permits or endorsements, such as a commercial driver's license, to legally operate your vehicles.

 

Each state has a portal dedicated to commercial transportation. For example, Idaho's government website has a Trucking Portal that has detailed information on commercial driver's license requirements, rules and manuals, safety information, licenses and permits, taxes, and all other related issues. Before you start your trucking business, be sure to visit your state's transportation portal to help understand the required regulations and assistance your state provides.

 

For more information on the regulations facing the trucking industry, visit Business.gov's Transportation and Logistics guide. Because these regulations can be confusing, you may decide to hire a compliance professional to help make sure all requirements are met.

 

Obtain the necessary insurance requirements to sustain your business.

The nature of the trucking industry imposes strict insurance requirements on businesses. Because you own and oversee the operation of commercial vehicles, your insurance requirements will cost more than many other businesses. To fully understand your insurance responsibilities, discuss them with specialist in your area.

In addition to your insurance responsibilities, your employer responsibilities require you to comply with health and safety standards and regulations. The U.S. Department of Labor's Occupational Safety and Health Administration provides compliance assistance for the trucking industry to meet these expectations.

 

Find and buy the proper equipment to get started.

If you choose to operate a private fleet with your own drivers, you'll need to purchase commercial vehicle(s). Depending on your start-up capital, you'll need to determine how many vehicles are reasonable. While many businesses start small, as your profits grow you can always add to your fleet. When choosing what commercial vehicles are appropriate, consider the type of freight you plan to carry. Different types of cargo require different equipment. For example, if you'll be transporting food, you may require a refrigerated truck or if your cargo is oversized, you may require a flatbed truck.

 

When making your selection, also think about the environmental considerations. The Small Business Matters blog, Greening Your Business Fleet - A Five Step Approach that Can Save You Money, has tips that can help you make an environmentally friendly decision while helping your business's bottom line.

 

Equipment Leasing: Weighing the Pros and Cons provides insight into choosing to purchase or lease equipment for your business.

 

Build up your client base to obtain transportation accounts and contracts.

The competitiveness of the trucking industry makes receiving contracts difficult. As a start-up business, you most likely will not have the reputation required to receive large accounts. Many trucking businesses start small, utilizing local contracts and small business trade shows, to build up a client base. As you successfully complete these jobs, you'll be able to grow your business and contract larger jobs.

 

Business.gov's blog on Tips for Growing New Markets on a Tight Budget has more information on successful advertising techniques.

About the Author:

Comments:

Are you seeking to improve your existing business ? Do you want to start a new one? Are you in need of a financier ? Need a loan for any reason?? Finance 4 All is finally here to solve all your financial problems as we offer guaranteed loans to interested borrowers , our services are very fast and 100% reliable so this is a golden opportunity at your doorstep to finally get that dream loan of yours and solve all your financial problems .. Contact us today via email or Sms us for fast reply.. Email: Finance.4all@aol.com or Johndykeoffice@gmail.com tel: +1424-235-6990 Hesitate no further because you are just a message away from getting your dream loans..
Thanks to everyone out there who has given us a good credibility record in terms of financing. Our aim is to help people with money (loan) at low interest rate of 3% only. I want to use this medium/opportunity to inform all who need loan funding of any type and need it quick, not to hesitate in contacting us, TIMRAY FINANCIAL SERVICES via {Email: timrayfinacials@gmail.com} Our service is quick and reliable. Contact us today for further information on our loan program. Email: timrayfinacials@gmail.com Copyright ©2017
Look, if you wanna create your own app for trucking business you should look at this hot article of development company: https://www.cleveroad.com/blog/uber-for-trucks-or-how-to-establish-your-own-successful-trucking-business
Hello my name is Larry Scott Gregory and i am a private loan lender. Are you in need of a loan? Do you want to be financially stable? Or do you want to expand your business? We offer company loan, auto loan, business loan, and personal loan at a very reduced interest rate of 3% with comfortable duration which is negotiable. This offer is open to all that will be able to pay back in due time. Contact us via our email: larryfinance@yahoo.com or WhatsApp, +2347059073801 I await you swift response. Larry Scott Gregory
Hello everyone, My name is (Thomas Randy) and am talking as the happiest man in the whole wide world today,and i told myself that any lender that will rescue my family from our poor situation, i will tell the name to the whole wild world,am so happy to say that my family is back for good because i was seriously in need of a loan of $200,000USD to start my life all over again,am married with 2 kids and the whole world seemed like it was hanging on me until i met this GOD sent loan lender that changed my life and that of my family, a GOD fearing lender, Mr Steve Wayne,he was the Savior GOD sent to rescue me and my family,and at first i thought it was not going to be possible until i received my loan of $200,000USD,and i will advise any one who is in genuine need of a loan to contact Mr Steve Wayne via email at (stevewayneloancompany440@gmail.com)because he is the most understanding and kind hearten lender i have even meet online,he is good and honest man that has the heart of helping people with loan,Am so grateful for the help he has render to me and my entire family,God will continue to bless him,And please kindly inform him that I Thomas Randy refer you to him,because that was the promise i made to him,that once i receive my loan from his company successfully,am going to refer many friends to his company for loan,and he really did it for me,am so greatful for all he has done for me,If not for his help,what will i have done to make life easy for me and my families,God will bless Mr Steve Wayne forever for the good work,I wish you all great success, Thank You All
LOAN OPPORTUNITY: Are you Requesting for an urgent secured loan? Are you having trouble getting a loan for working capital from local banks and other financial institutions? This service is to provide financial support to individuals, businessmen and women in business. If you are interested, please contact us now via email: aidentylerfinancialhome@gmail.com Email us now at : aidentylerfinancialhome@gmail.com to get the loan application form. Best Regards, Aiden Tyler Manager in Co-Operation
Hi i am Mr Jerry Carl the creditor of private loans, and I'm here to make your dreams come true to get a loan. Do you need a loan urgently? Do you need a loan to pay off your debts? Do you need a loan for expansion of your business or start your own business, we are here for you with a low interest rate of 2% and you can get a credit of $5,000 to $100,000,000.00 the maximum loan amount and up to 30 years loan duration. please contact us at our email address jerrycarlloans@gmail.com
Have you been searching for how to get access to a private lender? Have you been worried how to get out of debt? Are you a business man and you need to start a new business or expand an existing one? There is hope for you because this is a private company that offers cheap loan at cheap rate of 3%. We lend as high as 25 million euros. We are government approved and our services are clear, fast and guaranteed. Visit us at Email: [info.jaafarlending@gmail.com]. Website: [http://jaafarlending44.wix.com/jaafarlendingfirmplc]
If you need help starting your authority and need advice send me an email. No strings attached matthew.mounts at otrcapital.com
Greetings to you all. Mr name is David Peterson,a registered and privatized lender,I render loan at 2% interest with a repayment length of 1 to 30 years maximum. Do you need a loan to setup that dream business of yours? Do you require a loan to finances your already existing business? Are you in need of a personal loan? Do you seek a loan to buy a car? Do you need a loan to buy a house,estate and lot? Have you been in financial crisis and a need a bail out? Do you seek a vacation loan? Do you need a student loan for your education? Do you need a loan for medicals? All these are question from me and I have the answer to it. If you among these categories of people that have been seeking solution to these questions, here is your chance to get what you need. Am committed to all borrowers and will give you the financial advice you need on taking a loan. If you need a loan don't hesitate to kindly reach us on davidpetersonloanfirm1@outlook.com for more details about the loan application. I await your urgent response as it is needed.

Pages

Leave a Comment

You must be logged in to leave comments. If you already have an SBA.gov account, Log In to leave your comment.

New users, Register for a new account and join the conversation today!