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Maybe you’re a professional truck driver and want to start a trucking company by transitioning to owner-operator. Or, you’re considering getting your commercial driver’s license (CDL) to start your own trucking business.<\/p>\n
If you’re like many would-be trucking entrepreneurs, you’re unsure how to get started. Navigating the transition between employee\/driver and trucking company owner-operator can be tricky.<\/p>\n
Over the past fifteen years, our team has helped thousands of entrepreneurs and small business owners start trucking and transportation companies. We’ve frequently written about and talked about the trucking industry on our blog and elsewhere. This guide shares the actionable insights, tips, best practices, and expertise we’ve developed after helping over one hundred thousand brands.<\/p>\n
If you’re ready to leap, we’re here to share everything you need to know about how to start a trucking company<\/strong>.<\/p>\n <\/div> <\/a> Starting your own trucking company will be much easier to stand out from those generalized trucking companies (especially over the long term) if you specialize<\/em>.<\/p>\n Think about it. Would you go to a general practitioner or an oncologist specializing in lung cancer if you had lung cancer? You’d see a lung cancer specialist because they offer the best chance to solve your<\/em> unique problem.<\/p>\n The same is true for businesses that need to move products.<\/p>\n Customers want assurance that their freight will arrive in good, sellable condition. Knowing that you’re an expert in moving their type of freight will boost their confidence in your ability to do the job\u00a0well.<\/p>\n This is a great time to get into trucking and start a transportation company. There is a huge demand but not enough drivers and owner-operators to meet that demand. According to the American Trucking Association<\/a>:<\/p>\n The U.S. relies on truckers to keep people fed, deliver needed supplies, and keep the economy flowing. And, despite intermittent fluctuations, trucking services are consistently in demand.<\/p>\n Receive six actionable guides, including a how to start a business checklist, detailed comparisons of LLCs, corporations, sole proprietorships, and partnerships to determine the best fit for your business, plus insights on crafting a compelling pitch deck to attract investors.<\/p> Receive six actionable guides, including a how to start a business checklist, detailed comparisons of LLCs, corporations, sole proprietorships, and partnerships to determine the best fit for your business, plus insights on crafting a compelling pitch deck to attract investors.<\/p> Receive six actionable guides, including a how to start a business checklist, detailed comparisons of LLCs, corporations, sole proprietorships, and partnerships to determine the best fit for your business, plus insights on crafting a compelling pitch deck to attract investors.<\/p> Trucking companies that are specialists will appear most qualified to help and will most appeal to the clients and potential clients with those needs.<\/p>\n You may find that your niche is obvious. For example, it may be where you have the most expertise. Or, it may be a transport niche that needs to be filled in your local economy.<\/p>\n But, if you’re struggling to identify what your trucking niche or specialty should be, consider these techniques for narrowing it down:<\/p>\n Whatever niche you choose, don’t try to be the right fit for every client.<\/p>\n Marketing directly to the businesses that need your<\/em> expertise will deliver the best results.<\/p>\n You may be an experienced trucker, but you may need special training to deliver the best possible service, depending on the trucking business model you select. So, take advantage of opportunities to improve your skillset – even if you’re an expert.<\/p>\n And be sure to consider your total addressable market<\/a> in your selected niche. Not all market segments offer meaningful opportunities for new entrants.<\/p>\n Receive six actionable guides, including a how to start a business checklist, detailed comparisons of LLCs, corporations, sole proprietorships, and partnerships to determine the best fit for your business, plus insights on crafting a compelling pitch deck to attract investors.<\/p> Receive six actionable guides, including a how to start a business checklist, detailed comparisons of LLCs, corporations, sole proprietorships, and partnerships to determine the best fit for your business, plus insights on crafting a compelling pitch deck to attract investors.<\/p> Receive six actionable guides, including a how to start a business checklist, detailed comparisons of LLCs, corporations, sole proprietorships, and partnerships to determine the best fit for your business, plus insights on crafting a compelling pitch deck to attract investors.<\/p> <\/a> The experts at CDL Life (the largest online community of truck drivers in the U.S.) outline these five types of trucking business models<\/a>:<\/p>\n For-hire truckload carriers haul other companies’ freight.<\/p>\n There’s a good chance this may be the business model you had in mind when considering starting a trucking business. But consider it from all angles (and your other options) before committing.<\/p>\n Even within this fairly straightforward business model, many variables must be decided.<\/p>\n What kind of freight will you haul? Will you need special equipment to haul it? Will you operate locally, regionally, or nationally? Will your drivers be contractors or employees?<\/p>\n Private fleets provide their own trucks, trailers, drivers, and products. Thus, they’re a one-stop shop for both the items being shipped and the transportation of those items.<\/p>\n If you plan to start a trucking company, this probably isn’t the model you had in mind.<\/p>\n But, if you plan to manufacture an exciting, in-demand product and have a known audience reliably waiting for it… then you may want to consider starting a private fleet.<\/p>\n Less-than-truckload (or LTL) carriers haul items that comprise less than a full truckload. This means you may carry smaller quantities of items from several sources on a single trip.<\/p>\n Travis Overton of CDL Life explains<\/a>:<\/p>\n \u00a0One less than truckload trailer might be shipping 10-30 different products to all different customers.<\/p><\/blockquote>\n LTL carriers can operate regionally, locally, or nationally.<\/p>\n Household moving companies do just what it sounds like – they help people move.<\/p>\n This business model is generally a hybrid of transportation, manual labor (loading and unloading the truck), and possibly even helping clients pack their belongings.<\/p>\n You must decide whether to offer packing services, loading\/unloading, and driving. You’ll also have to choose whether to be a local, regional, national, or global moving company and plan your licensing, permits, and infrastructure accordingly.<\/p>\n Inter-modal trucking companies deliver shipping containers to and from the rail yard or shipping port. This keeps these companies localized in one region while helping to deliver goods worldwide.<\/p>\n This may be a good trucking business model if you’re near a major train hub or a cargo port. But if train activity is scarce in your area and you’re landlocked, consider another option.<\/p>\n Once you know your trucking business model, you’re ready to move on to the next step – writing a business plan.<\/p>\n <\/a> People often make mistakes when they start a trucking company. They rush into things before considering their business from all angles.<\/p>\n Writing a business plan<\/a> isn’t mandatory. But it can help you think things through and avoid many mistakes.<\/p>\n Studies show that entrepreneurs who take the time to write a business plan when starting a business are 2.5 times more likely<\/a> to follow through and get their business off the ground.<\/p>\n The work that goes into creating a business plan helps new owner-operators build skills (like analyzing their competition and examining their finances) that will be important to their success.<\/p>\n But don’t get obsessed about getting every detail right in your business plan. You don’t even need to write a traditional 100-page business plan. Instead, do your research and create a one-page business plan<\/a>.<\/p>\n For insights and free downloadable business plan templates, read this definitive guide to writing a business plan<\/a>.<\/p>\n <\/a> The trucking industry is overseen by the Department of Transportation (DOT) and the Federal Motor Carrier Safety Administration (FMCSA). These government agencies take their rules and regulations seriously and expect trucking companies to do so as well.<\/p>\n That’s why an attorney specializing in transportation safety compliance will be valuable to your business.<\/p>\n They can advise you on best practices as you establish your trucking company. And they’ll understand the legal details if you ever find yourself in trouble with the DOT or FMCSA.<\/p>\n A good lawyer will help you find the proper business structure for the business \u2013 and split ownership interests with partners or investors \u2013 in ways that will protect everyone and give you flexibility in the future.<\/p>\n <\/a> There are many different types of legal business structures<\/a> for various business entities.<\/p>\n (Note: These legal business structures differ from your trucking business model.)<\/p>\n For new trucking owner-operators, choosing the best business entity can feel overwhelming. So don’t rush into registering your business immediately.<\/p>\n For example, while a sole proprietorship or partnership<\/a> might be quick and inexpensive in the short term, it might expose you to more risk, create an unfavorable tax treatment, and create problems for you in the long term.<\/p>\n A limited liability company<\/a> (LLC) might make more sense for many trucking companies, and a corporation<\/a> could make sense for bigger trucking companies, especially if they have investors.<\/p>\n Spend some time reading about each possible entity your business might fit into. Then, consider which business structure is most helpful for your business; and how each can help you accomplish your personal and<\/em> business goals.<\/p>\n You’ll also need to designate a process agent to whom court and other real papers can be served. You’ll need a process agent in each state where you have an officer, operate your company, or establish customer contracts.<\/p>\n <\/i> Hire an expert to form your company and save time.<\/span> Our trusted partners can help: Northwest ($39 + state fee)<\/b><\/a> or Bizee ($199 + state fee)<\/b><\/a>. Remember that most states require you to register your trucking company with the secretary of state or county clerk in the county in which you operate if you operate your business under a different trade name than your legal business name.<\/p>\n This is an easy problem to solve. Just register your actual trade name with your state (and\/or local government) by filing a \u201cdoing business as\u201d (DBA) certificate. DBAs are also commonly called \u201cassumed name,\u201d \u201cfictitious business name,\u201d or \u201ctrade name.\u201d<\/p>\n Here\u2019s a terrific resource that explains what a DBA is, the DBA state requirements, and how to file a DBA<\/span><\/a> for your trucking company in all 50 states and U.S. territories.<\/p>\nHow to Start a Trucking Company<\/h2>
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<\/div>\nStep 1<\/div>Choose your niche<\/h2>
One of the keys to running a successful trucking company is identifying and embracing your niche. You can haul different freight with a truck (or fleet of trucks). But, if you specialize in one type of freight and do that better than anyone else, you'll find it easier to attract those specific customers reliably. <\/div>![](\"https:\/\/images.crowdspring.com\/blog\/wp-content\/uploads\/2020\/03\/27125439\/logo-pink-blue.png\"\/){kind=logo}
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Free Business Startup Kit<\/h2>
Get your free startup kit<\/i><\/a><\/div><\/div><\/div>Free Business Startup Kit<\/h2>
Get your free startup kit<\/i><\/a><\/div><\/div><\/div>Free Business Startup Kit<\/h2>
Get your free startup kit<\/i><\/a><\/div><\/div><\/div><\/p>\nHere are common niches in the trucking industry:<\/h3>\n
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Free Business Startup Kit<\/h2>
Get your free startup kit<\/i><\/a><\/div><\/div><\/div>Free Business Startup Kit<\/h2>
Get your free startup kit<\/i><\/a><\/div><\/div><\/div>Free Business Startup Kit<\/h2>
Get your free startup kit<\/i><\/a><\/div><\/div><\/div><\/p>\nStep 2<\/div>Define your services<\/h2>
After you determine your niche, consider the types of services you plan to offer. Services will impact the type of equipment you need to buy, how much trucking insurance you'll need, and many more aspects of your trucking business.<\/div><\/div>\nChoose your trucking business model<\/h3>\n
1. For-hire truckload carriers<\/h4>\n
2. Private fleets<\/h4>\n
3. Less-than-truckload carriers<\/h4>\n
4. Household movers<\/h4>\n
5. Inter-modal trucking<\/h4>\n
Step 3<\/div>Write a business plan<\/h2>
A business plan doesn't have to be complicated, but it does need to cover the essentials. And it's a step you definitely shouldn't skip. <\/div><\/div>\nStep 4<\/div>Hire an experienced business attorney<\/h2>
Hiring a good business attorney can help you avoid costly legal mistakes and protect your business when the need arises. Here\u2019s what you need to know to hire a good lawyer for your new trucking company. <\/div><\/div>\nStep 5<\/div>Decide your legal business structure<\/h2>
Before starting your trucking business, you need to decide on the type of entity you need to register. Your legal business structure affects everything, from how you file your taxes to your personal liability and whether you need to comply with any special additional requirements at the local, state, or national levels. <\/div><\/div>\n
Pay just $39 + state fees and you'll get a free year of registered agent service, articles of organization, privacy, and client support from local experts.<\/p><\/div><\/p>\n