How to Start a Trucking Company in Eight Steps
You’ve dreamed of the possibilities that come with starting a trucking company, and now you’re ready to get down to brass tacks. While there are a number of items you are required to cover to make sure everything is legal and above board, there is definitely a more organized manner in which to approach each step. Continue reading to learn what steps to follow to get your trucking company started. At A1 Consulting, we help you manage taxes, track paperwork and arrange permits so you can focus on the job of running your business. Our team of Top Rated Local® trucking company professionals provides the help you need to manage permits and registration, taxes, bookkeeping, and more. Get started today with a free 15-minute consultation.
Create a Business Plan
Whether you think of yourself as a planner or not, it is critical to the success of your new trucking company that you have your short-term and long-term goals as well as your perspective written out. Think of your business plan as a way to help you start off with an organized view of what you hope to achieve with your company, how you will achieve those goals, what your value proposition is, and also how you plan to address potential obstacles along the way.
Legally Establish Your Company
A very important step along the way to creating your trucking company is to get your company established legally as an LLC (limited liability company). This creates boundaries between your personal assets and business liabilities so that your personal property is protected. It also incorporates a number of legal, tax, and business advantages. To get started setting up the LLC for your trucking business, make sure to appoint a registered agent and obtain an EIN to open a bank account. The registered agent is the way the state will communicate with you and is required in most states. An EIN is your employer identification number and functions as a social security number for your business.
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Obtain Required Business Licenses and Permits
Depending on where you live, you’ll need to find out what licenses and permits are required at the state, county, and local government level before you’ll be able to open your doors to customers. You’ll also need to account for the areas you plan to operate your trucking company to ensure you have all paperwork in order. You need to determine if the following items are required for your business:
Commercial Driver’s License (CDL) and necessary endorsements
USDOT Number (U.S. Department of Transportation)
Motor Carrier Operating Authority (MC Number)
International Registration Plan (IRP) Credentials and International Fuel Tax Agreement (IFTA) Decal
Buy or Lease the Right Equipment
Running a successful trucking company will require the proper equipment. With that, you need to decide what type of equipment to lease or purchase. Consider whether the vehicle can accommodate the needs of your cargo. If you plan to transport perishable cargo, then you’ll need a vehicle with a refrigerated compartment. You also need to weigh the pros and cons of purchasing vehicles vs. leasing them. Do your research and talk with those in your network to see what the best option is for your business. Be thorough in your comparisons, as your decisions will shape the groundwork for your trucking company and impact your success.
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Select the Proper Insurance Coverage
As an owner-operator, you definitely want to make sure you have the proper level of insurance coverage to protect your investment. After all, even if you have the best drivers on your team, you can’t control the weather or the other drivers on the road. When you talk with the experts at A1 Consulting, we’ll help guide you to the best policy for your trucking company. We’ll be sure to discuss primary liability insurance, cargo insurance, physical damage insurance, and passenger accident insurance with you so that you can have peace of mind that all areas of your business are covered.
Understand and Track Your Income and Expenses
Tracking your income and expenses is an important part of running a successful trucking company, especially in terms of logistics and payments. Keep in mind that you’ll need to keep detailed and accurate lists of income and expenses in order to continue running a successful company. Some of the best practices to help you avoid common business mistakes include understanding when and how you’ll be paid for deliveries, maintaining thorough records, and keeping your business and personal finances separate. If you don’t have the time or desire to manage all of this paperwork, the experts at A1 Consulting can handle all of your tracking needs as part of your business package.
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Find Loads and Grow Your Business
Eventually, you want things to run smoothly for your business, but as you get started, you know you have a lot of work to do with finding loads and growing your company. One way to find loads is to use load boards to locate potential customers. You should also focus on marketing and networking to build relationships with potential customers. Don’t be afraid to contact local shippers directly to meet customers where they do business. The more you focus on building your network and establishing solid relationships, the more you’ll see your business grow.
Stay in Compliance
Staying in compliance means that you’ll need to stay up-to-date on all time-sensitive filing requirements such as quarterly tax returns, renewals for CDLs, and more. Failure to stay in compliance could result in a loss of good standing for your business or incur significant penalties, both of which you want to avoid.
Start Your Trucking Company!
At A1 Consulting, we know that keeping track of income and expenses, compliance paperwork, tax returns, and more can be incredibly draining and prevent you from managing your trucking company the way you want. We offer a variety of business packages and a la carte services to help meet your needs. Contact us today to get started with a free 15-minute consultation.