Starting a moving company can be a rewarding venture, blending logistical planning and customer service with smart business sense. The industry is worth billions, with steady demand for moving services from families, businesses relocating offices, and people making long-distance moves.
This guide will take you through the practical steps of validating your business concept, securing funding, obtaining necessary licenses, and acquiring equipment to help you launch a successful moving company in the U.S.
Step 1: Create your business plan and validate your concept
Research your local market
Start by looking at local demographics. Use U.S. Census Bureau data to find areas with high population turnover. You can also talk to real estate agents and apartment managers. They have direct knowledge of how many people move in and out of your area each month.
Analyze competitors and set prices
Identify local competitors using Google Maps and the FMCSA’s SAFER database. Check their services, read customer reviews, and call for quotes to understand their pricing structure. This research helps you find a competitive yet profitable rate for your own services.
Calculate your startup costs
Your initial investment will be a major part of your plan. A reliable used 16-foot box truck can cost between $20,000 and $40,000. Equipment like dollies, blankets, and straps will add another $1,000 to $2,000. Plan for these figures as you build your budget.
Insurance is another significant item. A down payment might be $3,000 to $5,000. A frequent misstep is to select a policy that falls short of state or federal requirements. You should confirm coverage minimums before you commit to a provider.
Here are 4 immediate steps to take:
- Check U.S. Census data for population trends in your target zip codes.
- List five local competitors and get a sample quote from at least two of them.
- Create a spreadsheet that details your estimated startup costs.
- Contact an insurance agent who specializes in commercial trucking for a preliminary quote.
Step 2: Set up your legal structure and get licensed
Choose your business structure
You will want to form a Limited Liability Company (LLC). This structure protects your personal assets if the business faces debts or lawsuits. You can file for an LLC through your state’s Secretary of State office, which typically costs between $50 and $500.
An LLC also offers pass-through taxation. This means business profits pass directly to you without the company itself paying federal income taxes. This approach is simpler than the double taxation you might face with a C Corporation.
Secure licenses and permits
The Federal Motor Carrier Safety Administration (FMCSA) regulates interstate movers. You must obtain a USDOT number and a Motor Carrier (MC) number to operate across state lines. The combined application fee is $300, and approval can take three to four weeks.
A frequent oversight is to begin jobs before your MC number is officially active. For moves within a single state, check with your state's Department of Transportation for specific permit requirements. You will also likely need a general business license from your city or county clerk.
Here are 4 immediate steps to take:
- Register your business as an LLC with your Secretary of State.
- Apply for a USDOT number via the FMCSA's Unified Registration System.
- Start the MC number application if you plan to cross state lines.
- Contact your state’s Department of Transportation for intrastate moving rules.
Step 3: Secure your insurance and manage risk
Understand your insurance needs
You will need several types of coverage. Commercial auto insurance is mandatory for your truck, and federal law requires $750,000 in liability for interstate movers. Cargo insurance protects your customers' belongings, with policies typically ranging from $50,000 to $100,000.
General liability covers property damage, like a scratched floor in a client’s home. If you hire help, you will also need workers' compensation. This covers medical costs and lost wages if an employee gets injured on the job.
A frequent mistake is to underinsure cargo. A basic policy might not cover the full value of what you move. Always match your coverage to the potential replacement cost of your clients' items to avoid major out-of-pocket expenses after a claim.
When you look for providers, focus on specialists like Progressive Commercial, The Hartford, or CoverWallet. They understand the moving industry's needs and can help with FMCSA filings. Annual premiums for a new company often fall between $8,000 and $15,000.
Here are 4 immediate steps to take:
- Request quotes from at least two insurance providers that specialize in commercial trucking.
- Verify your state’s specific requirements for workers' compensation insurance.
- Decide on a cargo insurance coverage amount based on the value of goods you plan to move.
- Ask potential insurers about their process for handling FMCSA filings.
Step 4: Find a location and buy your equipment
You will need a secure place to park your truck and store equipment. A 1,000 to 2,000 square foot space in an area zoned for commercial or industrial use is a good starting point. This gives you enough room for a truck and gear.
Before you sign anything, confirm with the city that you can park a commercial truck overnight. Some landlords are not aware of specific zoning restrictions, which can cause problems later. This simple check avoids future headaches.
When you negotiate a lease, you might ask for a shorter term, like one or two years. Landlords may also offer a month or two of free rent to new businesses if you ask. This can help manage your cash flow early on.
Purchase your moving gear
Once you have a location, you can focus on equipment. You will need several four-wheel dollies, which cost about $75 to $150 each. Also, plan for at least two dozen heavy-duty moving blankets. A good set will run you $200 to $300.
It can be tempting to save money on cheaper furniture pads. However, low-quality pads offer poor protection and can lead to damage claims. Invest in thick, quilted pads from the start. You can find gear at suppliers like Uline or local truck equipment stores.
Here are 4 immediate steps to take:
- Identify three potential locations zoned for commercial or industrial use.
- Ask a potential landlord about their lease terms for a new business.
- Create a budget for dollies and straps using prices from a supplier like Uline.
- Compare the cost of standard versus heavy-duty quilted moving blankets.
Step 5: Set up your payment processing
Establish your payment terms
Most movers require a deposit to secure a booking. You might set a flat fee, like $100, or a percentage of the estimated job cost. The final balance is then collected once the move is complete. Be prepared to accept credit cards and digital wallets on-site.
If you rely only on cash or checks, it can make your business seem less professional and may inconvenience customers. A flexible payment system is a must-have from day one.
Find the right payment solution
You need a solution that works on the go, since you will collect final payments at your client's new home. One thing to watch for is high transaction fees. Many providers charge between 2.5% and 3.5% plus monthly fees, which cuts into your profit on every job.
For moving companies that need to accept payments on-site, JIM offers a streamlined solution. With JIM, you can accept debit, credit and digital wallets directly through your smartphone - just tap and done.
At just 1.99% per transaction with no hidden costs or extra hardware needed, it's particularly useful when you collect final payments right after you unload the last box.
Getting started is straightforward:
- Get Started: Download JIM app for iOS
- Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone
- Access Funds: Your money is available right on your JIM card as soon as the sale is done - no waiting for bank transfers
Here are 3 immediate steps to take:
- Decide on your deposit policy, such as a flat fee or a percentage of the job estimate.
- Compare the transaction fees of two other payment solutions with the 1.99% rate from JIM.
- Download the JIM app to see how it works for on-the-go payments.
Step 6: Secure funding and manage your finances
An SBA 7(a) loan is a solid option. Lenders often approve $50,000 to $150,000 for new moving companies. You will need a strong business plan and a good credit score, typically above 680, to qualify. Interest rates usually float above the prime rate.
Another path is equipment financing, which is specific to your truck. These loans use the vehicle as collateral. Rates for new businesses can range from 5% to 15%. This can be easier to secure than a general business loan if your credit is still developing.
Now, let's talk about operating cash. You should have at least $15,000 to $25,000 in working capital. This covers your first six months of fuel, insurance payments, and marketing. Many new owners focus on the truck purchase but forget about the cash needed for daily operations.
Once you have funding, open a separate business bank account immediately. Mixing personal and business funds can create tax headaches and makes it difficult to track profitability. This simple step also reinforces your LLC's liability protection.
Here are 4 immediate steps to take:
- Contact your local Small Business Development Center (SBDC) for free assistance with your SBA loan application.
- Request a quote for equipment financing from a commercial vehicle lender.
- Create a six-month operating budget that includes fuel, insurance, and marketing costs.
- Open a dedicated business checking account to separate your finances.
Step 7: Hire your team and set up operations
Your first hires will likely be a Mover and a Driver. Movers handle the heavy lifting and can earn $15 to $25 per hour. The Driver also acts as the on-site foreman, communicates with the client, and typically makes between $20 and $30 per hour.
It is best to bring them on as W-2 employees. Some new owners try to classify staff as 1099 contractors to cut costs, but this can create serious tax and insurance problems down the road. Also, check if your truck's weight requires your driver to have a Commercial Driver's License (CDL).
Streamline your daily operations
Once your team is in place, you'll need a system to manage jobs. Software like Jobber or SmartMoving lets you schedule crews, track job progress, and send updates to customers. This keeps your operation smooth and prevents mix-ups like double-booking a crew.
Speaking of finances, keep a close watch on your labor costs. For a moving company, payroll should ideally stay between 40% and 50% of revenue. If that number creeps up, it’s a signal to either raise your prices or find ways to make your crews more efficient.
Here are 4 immediate steps to take:
- Write job descriptions for a Mover and a Driver that outline their specific duties.
- Consult your state’s labor department website for rules on W-2 vs. 1099 workers.
- Request a demo from two scheduling software providers, such as Jobber or SmartMoving.
- Calculate a target labor cost for your business plan, aiming for around 45% of revenue.
Step 8: Market your business and get customers
Build your digital footprint
Start with a free Google Business Profile to appear on Google Maps. Encourage every customer to leave a review. A frequent oversight is to ignore negative feedback. You should respond to all reviews professionally to show you care about customer service.
Once that is set up, you might want to run Google Ads. Target local keywords like "movers in [your city]". A starting budget of $500 to $1,000 per month is realistic. Expect a Customer Acquisition Cost (CAC) of $50 to $100 per booked job.
Forge local partnerships
Connect with real estate agents, apartment managers, and self-storage facilities. You can offer a referral fee for each client they send your way. A flat fee of $50 or 5% of the job value is a common arrangement that builds a steady lead pipeline.
Do not forget about offline tactics. Your truck is a mobile billboard, so keep it clean and clearly branded. You can also place yard signs in neighborhoods after you complete a move. This simple act can attract neighbors who are also planning a move.
Here are 4 immediate steps to take:
- Set up and fully verify your Google Business Profile.
- Contact three local real estate agents to propose a referral partnership.
- Decide on an initial monthly budget for a Google Ads campaign.
- Design a simple yard sign with your company name and phone number.
Step 9: Set your pricing strategy
Choose your pricing model
You have two main options: hourly rates or flat-rate pricing. Most local moves use an hourly rate. For long-distance jobs or large homes with a detailed inventory, a flat-rate quote can give the customer more certainty and protect you from slow work.
For a two-person crew and one truck, a common hourly rate is $120 to $180. This price should cover your labor, fuel, insurance, and overhead, while leaving room for profit. Remember to bill for travel time from your office to the client’s home.
A frequent misstep with flat-rate jobs is underestimating the time required. Always conduct a thorough in-home or video estimate. Your quote should clearly state what is included to prevent disagreements about extra items or difficult access on moving day.
Factor in your costs and profit
Your labor costs will be your biggest expense, so aim to keep them between 40% and 50% of your revenue. After all expenses, a healthy net profit margin for a new moving company is between 10% and 20%.
Be transparent about any extra charges. You might want to list fees for things like packing materials, flights of stairs, or items over 250 pounds. This avoids surprising the customer with a higher bill and helps build trust.
Here are 4 immediate steps to take:
- Decide on an hourly rate for a standard two-person crew and truck.
- Create a template for flat-rate quotes that details what is included.
- List all potential extra charges and decide on their prices.
- Set a target net profit margin, aiming for at least 10%.
Step 10: Control quality and scale your operations
Maintain high service standards
To ensure quality, track your damage claim rate and aim to keep it below 2%. You should also survey customers after each job. A frequent mistake is to handle claims informally. This can hurt your reputation more than the initial damage. Have a clear, written process for resolution.
You might want to pursue the ProMover certification from the American Trucking Associations. This credential shows customers you are licensed, insured, and follow professional standards. It helps you stand out from competitors who cut corners.
Plan your growth
Once your schedule is consistently 80% booked a month in advance, it is time to consider a second truck. Another signal is when you turn down more than three profitable jobs per week because you lack availability. This shows demand is outpacing your capacity.
Adding a second truck means hiring another crew. Before you do, confirm your revenue can support the added payroll. Your labor costs should remain between 40% and 50% of total revenue to maintain profitability as you expand your operation.
Here are 4 immediate steps to take:
- Research the ProMover certification requirements on the American Trucking Associations website.
- Create a formal process for documenting and resolving customer damage claims.
- Track your booking capacity to see if you consistently hit the 80% mark.
- Calculate if your current revenue can support a second crew while keeping labor costs under 50%.
Starting a moving company is about more than just heavy lifting. Success often comes down to customer trust and smooth operations. Remember, you are moving people's lives, not just their boxes. With a solid plan, you are well on your way to building a successful business.
And to keep your operations smooth, make sure getting paid is simple. JIM lets you accept cards right on your smartphone, with no extra hardware needed. With a flat 1.99% transaction fee, your costs are predictable. Download JIM and you are ready to go.
