How much does it cost to start a trucking company?
Starting a trucking company can be very cheap. That’s if everything you own is depending on good luck!
If you hire a third party service to get all of your permits and paper work, you can be looking at a price of up to $2,000. This would include the random DOT drug testing, required permits, authority, and a business name rather you choose to be incorporated, LLC, or any type of business you decide to become.
Starting off you will need cargo insurance which you will require a down payment for. At current times depending on what type of insurance you decide to get, you will need a down payment that’s between $3,000 – $4,000. After that you will pay monthly anywhere between $800 – $1,200. This all depends on what your insurance carries and if you have hazmat or not.
This start up fee is also assuming you already have the equipment such a truck and a trailer. If you do not have equipment, the cost will certainly be over $25,000 depending on how old of equipment you will buy.
As you see starting a trucking company is very cheap on the back end but it costs a lot to keep it running. Majority of the expenses generate from your equipment and it’s usage. Equipment itself, drivers, office, IFTA, Heavy Duty High Way Tax, tolls, and fuels. Most important is keeping your equipment maintained to be safe and profitable.
In case you need better cash flow to manage your money and keep your business running it’s recommended to find a factoring company. Sure it will cost, but however you will never have an issue with cash flow. There are a lot of great programs such as NATSC that will give you fuel cards with great discounts!
You can also find great resources at groups such as OOIDA.