How to Start A Trucking Company
Ever dreamt of moving from a truck driver to running your very own trucking business? Well, you’re in for a treat. At TruckOutsource, we’ve got your back with a straightforward checklist that breaks down everything you need to know to become the boss of your own trucking adventure. Let’s dive into this easy-to-follow guide on launching your very own trucking venture.
Before we jump into the nitty-gritty, remember that doing your homework is key before deciding whether an MC Authority is necessary for your business. Trust us, not every situation calls for this step, as the seasoned pros already know.
Now, let’s get those wheels turning on your trucking journey. Here’s how:
1. Get Your Business Legit
First things first, make your business official by registering with the Small Business Administration and snagging a tax ID. The specifics depend on where you’re located and how you’re structuring your business.
2. Grab That Commercial Driver’s License (CDL)
If you haven’t already, make sure you’ve got your Commercial Driver’s License (CDL) locked and loaded. The cost can swing anywhere from absolutely free to around $5,000.
3. Score Your USDOT and MC Authority Numbers – $300
You’ll need a USDOT Number, which is like your business’s safety tag. And if you’re hitting the road for interstate commerce, say hello to the MC authority number. It’s an application process with a $300 price tag, and keep an eye out for extra costs like insurance during the application dance.
4. Team Up with Unified Carrier Registration (UCR)) – $59 to $56,977
Got your sights set on interstate commerce? Then you’ve got to shake hands with UCR. The handshake involves coughing up anywhere from $59 to $56,977, depending on the size of your fleet.
5. Get an IRP Tag for Around $1,500 to $2,000
Crossing borders into the U.S. and Canada? You’ll need an International Registration Plan (IRP) tag for your commercial vehicles and trailers. The bill? Somewhere between $1,500 and $2,000.
6. Tackle Heavy Use Tax (HVUT) – Around $550
If your trucks are hitting 55,000 lbs or more on the scale, you’re in for the Heavy Highway Vehicle Use Tax (HVUT) gig. Expect to fill out IRS Form 2290 and shell out up to $550 for each rig, every year.
7. Snag the IFTA Decal for Free
With the International Fuel Tax Agreement (IFTA) decal, you can handle quarterly fuel use tax returns based on where your HQ is stationed. Good news? Grabbing the IFTA decal for each truck is absolutely free through your state’s official .gov website.
8. Complete the BOC 3 Form – Budget $20 to $40
Ready for some paperwork? The BOC 3 form is part of getting your MC authority and it’s all about having a legal go-between in different states. Every state you’re in will want its own BOC 3 filing, and you’ll be looking at around $20 to $40 for each.
9. Unlock Your SCAC for $95
If your business handles special types of hauling like military, government, international, or hazardous materials, meet your new friend: the Standard Carrier Alpha Code (SCAC). It’s a $95 ticket to ride, available through the National Motor Freight Traffic Association’s (NMFTA) website.
10. Insure Your Ride – Between $3,000 and $12,000
Keep things covered with insurance as you tackle various registrations, including your MC authority application. Shield your equipment and cargo with insurance covering auto liability, auto physical damage, cargo, and general liability. Depending on whether you own or lease, budget between $3,000 to $12,000 per truck, per year.
TruckOutsource gets it – starting a trucking company isn’t a walk in the park. Our checklist? Consider it your roadmap to success. With each step, you’re gaining confidence to steer through the twists and turns of the trucking world. Ready to take the plunge? Follow these steps and embark on your journey as a proud owner-operator in the thriving trucking universe. Your adventure starts right here.
