If you haven’t already, you’ll need to get a commercial driver’s license (CDL). [1] X Research source If you live outside of the United States, you’ll need the operating license required by your jurisdiction.
Additionally, you’ll need special licensing for some markets. For example, in order to transport goods to a port in the United States, you need to apply for a Transportation Worker Identification Credential (TWIC). [3] X Trustworthy Source U. S. Transportation Security Administration U. S. government agency responsible for ensuring safety by setting and enforcing travel protocols Go to source If you want to transport hazardous materials, you’ll need a hazardous materials endorsement. [4] X Trustworthy Source US Bureau of Labor Statistics U. S. government agency that collects and reports labor-related information Go to source
If you’re hiring drivers, you’ll need to factor their salaries into variable costs. As a general rule, subcontracted drivers earn 30% of the truck’s gross revenue. Total your fixed and estimated variable costs to determine the revenue you’ll need to generate per vehicle in order to break even.
You can also talk to an accountant or professional financial planner.
If you plan on staying in the industry long-term, it’s better to buy or finance a truck. If not, leasing or renting is your best option. Owning or financing a truck is usually more profitable in the long-term. However, keep in mind that you’ll be responsible for all repairs and maintenance. As your business grows, you can add more vehicles to your fleet and hire licensed drivers to operate them. [7] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source
An LLC is the best choice for many small business owners, especially if you want to protect your personal assets. Your personal vehicle, home, and other assets won’t be at risk if your business faces bankruptcy or lawsuits.
Apply online for an EIN here: https://sa. www4. irs. gov/modiein/individual/index. jsp. Find your state’s business registration procedures here: https://www. irs. gov/businesses/small-businesses-self-employed/state-government-websites.
Find your state’s DOT requirements here: https://www. fhwa. dot. gov/about/webstate. cfm. For locations outside of the United States, check with your department of transportation or other appropriate agency about licensing requirements. For example, in the United Kingdom, you’ll need to apply for a good vehicle operating license with the Traffic Commissioners of Great Britain. [12] X Trustworthy Source Official UK government website Official website for the public sector of the UK government Go to source
Check with your nation’s revenue service if you live outside of the United States.
In the United States, total insurance costs for trucking businesses average around $6,500 (USD) per year. [16] X Research source
You should also promote your services by calling or sending letters to niche-specific businesses, such as logging or manufacturing companies.
Find out if you’ll need to purchase additional insurance for goods hauled. If the client doesn’t purchase a policy, you’re not required to purchase insurance or anything else through them. You can take out any additional federal or state mandated policies with a provider of your choice. Avoid contracts that include competition clauses. If there is a non-negotiable competition clause, make sure it has a reasonable end date. You won’t want to be restricted from working with other companies in the future.
Contrary to popular belief, driving above 60 miles (97 km) per hour can reduce your fuel efficiency. Going faster might help you meet delivery deadlines and land more contracts, but you’ll end up using more fuel.
