If you want to be your own boss and are interested in driving trucks, starting a trucking company is the best option. Being an owner-operator is fantastic because you have total control over your income; it just depends on how much you want to work and how large you want your business to be.
9 steps to starting a trucking business:
In order to gain experience you must:
Obtain a Commercial Driver’s License (CDL)
Log road knowledge
Join a trucking business that offers a training programme or attend a private truck driving school. (Many owner-operators start out as company drivers to develop their driving abilities, get on the road experience, and figure out how to launch a trucking business.)
2. Business Entity
If you operate a business and want to preserve your personal property while enjoying a number of tax benefits, look into limited liability companies (LLC). Select a registered agent when forming an LLC. This person will function as your point of contact with the state, accept and submit legal papers on your behalf, and receive compliance and tax information. Additionally, get your LLC's EIN (employer identification number), which is necessary for many commercial operations, such as opening a business bank account.
3. Business Name
Pick a company name that is brief, relevant, unique, easy to remember, and can be translated. Use the electronic search tool on the USPTO website to make sure you aren't using a business name already registered in the same sector.
4. Register Business
You must adhere to the FMCSA's standards while beginning a firm. Before you begin hauling, your firm must adhere to the majority, if not all, of the following requirements depending on the type of business you run:
Verify any and all licences and permissions needed for your transportation company. Depending on the services you offer and the locations where you operate, more registrations than those mentioned above can be necessary. Reach out to a registered FMCSA filer who can efficiently negotiate the maze and finish the filing requirements to speed up the process.
5. Business Plan
The essential components of a well-structured business strategy are as follows:
Download a free business plan for trucking. Be proactive and ready for the high operating costs associated with transporting freight.
6. Startup Funding
Depending on the type, model, and features, the cost of a new commercial vehicle starts well over $100,000 and can reach $200,000 or more. Depending on interest and amortization, leasing prices might range from $2,500 to $3,500. It might be helpful to look into other lenders such as freight factoring businesses and government funding possibilities. Here is a brief explanation of a few possibilities for you to consider:
Small Business Administration (SBA) loans
SBA loans are a highly sought-after source of capital because of their low-interest rates and accommodating payback schedules. If you are eligible, these loans are an excellent alternative for starting your trucking business. To qualify for an SBA loan, you must have a strong credit history and score.
Small business term loans
In this funding arrangement, the lender gives the borrower a quantity of money to be returned over a certain period of time, typically considerably faster than a traditional loan. Although it is simpler to qualify than for an SBA loan, the interest rates are greater and might be fixed or variable. This kind of financing arrangement is not appropriate for long-term planning when looking into financial possibilities for how to establish a trucking company.
Equipment Financing is offered by M7 TAX and our affiliates Lease Fleet and eCapital. With the help of this service, you can finance both new and old equipment and lease or loan it. Alternative financing is also a possibility. We are the ideal partners to help you finance your fleet and quickly expand your business, with approval times of less than 24 hours and 0 percent down lease and loan alternatives.
M7 TAX and our partner eCapital provide freight factoring together. With this service, we can receive your invoices for the loads you haul, and you may be paid for them more quickly and easily—in less than 24 hours.
What we provide:
90-day risk-free trial
Back office support
Take account of the deadlines for filing documents. Loss of good standing or severe fines may come from failure to comply with these standards. You may keep current with the aid of a registered FMCSA filer.
8. Fleet Management Process
Manage driver supervision, fuel management, regulatory and safety compliance, vehicle maintenance, and compliance. Utilize fleet management software to simplify the management of your fleet. Use the cost-saving fuel card program from eCapital to efficiently manage fuel expenses and reporting.
9. Build Business
The best general guideline is to not let any one customer account for more than 20% of your income. Increase your clientele and get more loads by using:
Collaborative partnerships with other carriers
It might seem intimidating to start a trucking business, but it doesn't have to be. You can manage your business by keeping a proper balance between costs and revenues, charging customers enough to cover expenses while remaining competitive, driving as many loads as you can, managing your accounts receivable efficiently, billing customers quickly, collecting payments as soon as possible, and paying your bills on time. You can also manage your business by making decisions based on how they will affect costs, forming alliances, interacting with industry experts, and working with a financial partner.
About M7 TAX
Particularly for the trucking sector, M7 TAX is knowledgeable about the ins and outs of a bookkeeping and accounting organization. We use tried-and-true methods to help your business while keeping it as comfortable as feasible for you. We have served over 2000 clients. Our services are created to meet your demands in both your personal and professional lives. In order to lead our customers to their ideal financial and tax solutions, we offer the highest calibre of service and individualized tax assistance.
We immediately transfer your funds to you so that you have the funding you require to support your business operations. Our group provides professional factoring services that provide your company access to money when you need it. Visit m7tax.com or eCapital.com to find out more about leveraging freight factoring to offer startup capital with the adaptability to assist growth and businesses in transition.