How to start a trucking company: a beginner's roadmap

Starting a trucking company is a rewarding venture that combines on-the-road expertise with sharp business savvy. The industry moves hundreds of billions of dollars in freight each year, with steady demand from sectors like retail, manufacturing, and construction.

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 trucking company in the U.S.

Step 1: Create your business plan and validate the concept

Start by researching profitable routes. Spend a week monitoring load boards like DAT and Truckstop.com to see real-time freight rates and volume in your target lanes. This shows you what brokers actually pay, which is more valuable than any generic report.

Analyze competitors and costs

Next, look up potential competitors in the FMCSA SAFER database. You can see their fleet size, cargo carried, and safety records. This helps you find a niche they might overlook. For example, you could focus on refrigerated freight if others only handle dry vans.

Speaking of costs, your initial outlay can be considerable. A down payment on a used truck can range from $5,000 to $20,000. You should also budget for insurance down payments ($3,000-$5,000) and authority filings like IRP and UCR ($1,500-$2,500).

One area where new owners often miscalculate is working capital. You will need at least $10,000 set aside for fuel and maintenance, since freight payments can take 30-60 days to arrive. A lack of cash flow ends many new ventures prematurely.

Build your action plan

Here are 3 immediate steps to take:

• Research freight rates on DAT or Truckstop.com for three potential lanes.
• Use the FMCSA SAFER database to analyze two local competitors.
• Draft a startup budget that includes a minimum of $10,000 for working capital.

Step 2: Set up your legal structure and get licensed

First, form your business entity. Most new owner-operators choose a Limited Liability Company (LLC). It protects your personal assets if the business faces a lawsuit. Profits pass through to your personal taxes, which simplifies filings.

An S-Corp is another option that can offer tax savings once you are consistently profitable, but the setup is more complex. It is a good idea to speak with an accountant to decide what is best for your situation.

Federal and state requirements

With your business registered, you can tackle federal requirements. You will work primarily with the Federal Motor Carrier Safety Administration (FMCSA). Start by getting a USDOT number online, which is free and immediate.

Next, apply for your Motor Carrier (MC) number, which costs $300 and allows you to haul freight across state lines. The approval process usually takes 2-3 weeks. You must also file a BOC-3 form, which designates a process agent in each state.

A frequent misstep is letting your MC number application lapse. After you apply, you have a limited window to get your insurance and BOC-3 filed. If you miss it, your authority will be dismissed, and you will have to reapply.

You will also need to register for the Unified Carrier Registration (UCR) system, which costs about $60 for one truck. For your truck itself, you will get apportioned plates through the International Registration Plan (IRP) and an IFTA decal for fuel tax reporting.

Here are 4 immediate steps to take:

• Register your business as an LLC with your state.
• Apply for your USDOT and MC numbers through the FMCSA portal.
• Select a process agent and have them file your BOC-3 form.
• Complete your Unified Carrier Registration (UCR) online.

Step 3: Secure insurance and manage risk

Key insurance policies

Your next move is to get the right insurance. You will need at least $1,000,000 in Primary Auto Liability and $100,000 in Motor Truck Cargo coverage. While the federal minimum for liability is lower, nearly all brokers and shippers require the $1 million limit to book a load.

Annual premiums for a new authority often range from $15,000 to $25,000 for these two policies alone. This cost is a major part of your operating budget, so it is important to shop around for quotes early in the process.

One thing to watch for is buying a policy that only meets the federal minimum. This saves a little money upfront but severely limits your access to freight. Always confirm your coverage amounts meet broker standards before you commit to a policy.

Find a specialized agent

You should work with an insurance agent who specializes in trucking. They understand the FMCSA filing process and can often find better rates than a general agent. They also know which policies will satisfy the requirements of major freight brokers.

Consider getting quotes from providers like Progressive Commercial, OOIDA, or Great West Casualty. These companies have deep experience with new trucking authorities and can guide you through the specific risks and filing requirements for motor carriers.

You might also look into General Liability, which covers incidents that happen off the road, and Physical Damage insurance to protect your truck and trailer. These are not always required but offer valuable protection for your business assets.

Here are 4 immediate steps to take:

• Request quotes for $1,000,000 in auto liability and $100,000 in cargo coverage.
• Contact a specialized agent from a provider like Progressive Commercial or OOIDA.
• Ask potential agents if their policies meet the standards of major freight brokers.
• Add General Liability and Physical Damage insurance to your quote requests for full protection.

Step 4: Acquire your equipment and find a location

Choose your truck and trailer

A used Class 8 truck is a practical first purchase. Expect to pay between $40,000 and $80,000. While a new truck offers reliability, its price tag of over $150,000 can be a large hurdle for a new company.

Many new owners buy trucks with over 700,000 miles to cut costs, but this can backfire. High-mileage trucks often come with unexpected repair bills that drain your working capital. Aim for a truck with under 500,000 miles for a better balance of price and performance.

With the truck sorted, you need a trailer. A used 53-foot dry van typically runs $20,000 to $35,000. If you plan to haul temperature-sensitive freight, a used reefer trailer will cost closer to $40,000 to $60,000.

Secure a place to park

You must have a legal and secure spot to park your rig. Do not wait until you have the truck to figure this out. Search for lots zoned for industrial or commercial use. Your local city planning department can provide a map of approved areas.

When you find a lot, you might want to negotiate a shorter lease term, like six months. This provides flexibility as your business grows. Also confirm the lot offers 24/7 access and has security like fences and lighting.

Here are 4 immediate steps to take:

• Research used trucks with under 500,000 miles on TruckPaper.com.
• Get quotes for a used dry van or reefer trailer.
• Contact your city planning office to identify areas zoned for truck parking.
• Ask potential landlords about a six-month lease option.

Step 5: Set up your payment and invoicing system

Manage your cash flow

Most freight brokers operate on Net 30 or Net 60 payment terms. This means you will wait 30 to 60 days to get paid after you deliver a load. You must have an invoicing system ready to send bills and track what you are owed.

Many new carriers use freight factoring to get paid faster. A factoring company buys your invoices for a small fee, usually 2-5%, and pays you within 24 hours. This can be a great way to maintain cash flow while you build your business.

Accepting on-the-go payments

Sometimes you need to collect payment on the spot, like for lumper fees or a local delivery. For these situations, 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 is a cost-effective option. This rate is often lower than the 2.5% to 3.5% that other payment solutions charge. It is particularly useful for settling lumper fees without using your cash reserves.

Here is how it works:

• Get Started: Download the 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:

• Set up a simple invoicing process to manage Net 30-60 payments.
• Research two or three freight factoring companies to have as a cash flow option.
• Download the JIM app to prepare for on-the-spot payment needs like lumper fees.

Step 6: Find funding and manage your finances

You can fund your company through an SBA 7(a) loan, which is popular with new carriers. Lenders typically want to see a strong business plan and may offer up to $350,000. Interest rates often hover around the Prime rate plus 3%.

Equipment financing is another route. Since the truck serves as collateral, these loans can be easier to get. You will likely need a down payment of 10-20%. A frequent mistake is accepting the first offer; always compare rates from at least two lenders.

Plan your working capital

For your first six months, you should have $15,000 to $25,000 in working capital. This cash reserve covers fuel, insurance premiums, and unexpected repairs. It is separate from the money you use for your truck down payment and ensures you can keep operating.

This buffer is your safety net. You will use it to pay for expenses while you wait for brokers to pay your invoices, which can take 30 days or more. Without it, a simple delay in payment could put your entire operation on hold.

Here are 4 immediate steps to take:

• Review the requirements for an SBA 7(a) loan online.
• Request equipment financing quotes from two different lenders.
• Calculate your working capital needs for the first six months.
• Open a dedicated business bank account to manage your funds.

Step 7: Build your team and streamline operations

Hiring your first driver

As a one-truck operation, you are the first driver. Once you expand, you will hire a CDL Class A driver. Expect to pay a company driver a salary between $60,000 and $85,000 annually, plus potential performance bonuses.

A mistake new owners often make is hiring a driver without checking their full history. You should use the FMCSA's Pre-Employment Screening Program (PSP) to review a candidate's 5-year crash and 3-year inspection history. A report costs about $10 and is money well spent.

Setting up your operations

Your truck must have an Electronic Logging Device (ELD) to track hours of service. Providers like Motive and Samsara offer ELD systems that also include fleet management features like GPS tracking and maintenance alerts. These systems help you stay compliant and run efficiently.

With a driver and systems in place, you can project revenue. A single truck typically generates between $170,000 and $250,000 in gross revenue per year. This figure helps you understand your earning potential and manage your financial goals.

Here are 4 immediate steps to take:

• Draft a job description for a CDL Class A driver for future hiring.
• Create an account with the FMCSA's Pre-Employment Screening Program (PSP).
• Compare pricing for ELD providers like Motive and Samsara.
• Set a target annual revenue goal for your first truck.

Step 8: Find your first customers and market your business

With your authority active, your first stop should be load boards like DAT and Truckstop.com. These are the fastest channels to find freight. Brokers post thousands of loads daily, giving you immediate access to work and revenue.

You should also call brokers directly to introduce your new company. A quick phone call helps you stand out from other carriers and build relationships. This personal touch can lead to better rates and dedicated freight down the road.

Develop a direct shipper strategy

Working directly with shippers cuts out the middleman and can increase your profit per load by 15-20%. This is a long-term play. Start by researching local manufacturing plants and distribution centers in your area.

One mistake new carriers make is accepting cheap freight just to keep the truck moving. You must know your all-in cost-per-mile. If your breakeven point is $1.75 per mile, a load paying $1.85 might not be worth the wear on your equipment.

Here are 4 immediate steps to take:

• Post your truck as available on DAT and Truckstop.com.
• Call five freight brokers to introduce your company and services.
• Identify three potential direct shippers within a 50-mile radius.
• Calculate your all-in cost-per-mile to evaluate load profitability.

Step 9: Develop your pricing strategy

Calculate your rate per mile

Your pricing starts with your all-in cost-per-mile (CPM). This includes fuel, insurance, maintenance, and your own salary. If your total monthly cost is $10,000 and you drive 5,000 miles, your CPM is $2.00. This number is your breakeven point.

With your costs clear, you can add your profit margin. A healthy margin for a new carrier is 15-20%. If your CPM is $2.00, a 20% margin means you should aim for rates around $2.40 per mile. This ensures you cover costs and build capital.

Analyze the market and set your rates

Use load boards like DAT and Truckstop.com to see what brokers pay on your target lanes. This real-time data is more valuable than any report. Look at the 15-day average rate for a lane to understand its typical value.

One thing to watch for is focusing only on the per-mile rate. A load paying $3.00 per mile for 100 miles is less profitable than one paying $2.40 for 500 miles. Always calculate the total revenue for the trip against your time and expenses.

Here are 4 immediate steps to take:

• Calculate your all-in cost-per-mile, including all fixed and variable expenses.
• Research the 15-day average rates for three of your target lanes on a load board.
• Set a target profit margin of 15-20% above your calculated cost-per-mile.
• Analyze five available loads and calculate the total potential revenue for each.

Step 10: Control quality and scale your operations

Measure your performance

You will want to track two key metrics: on-time performance and your cargo claims ratio. Aim for an on-time delivery rate of 98% or higher. Brokers monitor this, and a high score gives you access to better freight. A simple spreadsheet is enough to start.

For cargo claims, your goal should be a ratio below 1%. This shows shippers and brokers that you handle freight with care. A high claims ratio can make it difficult to get insurance or book premium loads. Track this number quarterly to spot any issues early.

Plan your growth

When your truck is booked over 85% of the time for three straight months, it is a signal to consider a second truck. Many owners make the mistake of expanding too quickly, before they have consistent freight. This can drain cash reserves and put the business at risk.

As you grow, a Transportation Management System (TMS) becomes very helpful. Software like AscendTMS or TruckingOffice helps you manage dispatch, invoicing, and compliance for multiple trucks. Many offer free or low-cost plans for small fleets, so you can start without a large investment.

Here are 4 immediate steps to take:

• Track your on-time delivery percentage for every load.
• Calculate your cargo claims ratio at the end of each quarter.
• Set a truck utilization target of 85% as your trigger for expansion.
• Review the features of a TMS like AscendTMS or TruckingOffice.

Conclusion

You have the roadmap to launch your trucking business. Remember that success in this industry comes from smart decisions, not just long miles. Know your costs, watch the market, and stay disciplined. The road to ownership is open.

For those moments you need to take a payment, a solution like JIM helps. It lets you accept cards on your phone for a flat 1.99% fee, no hardware needed. Download JIM and keep your cash flow smooth.