How to start a trucking company: Step-by-step guide and tips

Published Monday 29 September 2025

Table of contents

• Why start a trucking company?
• Types of trucking companies
• A step-by-step guide to starting a successful trucking company
• Manage your trucking business finances with confidence
• FAQs on starting a trucking business

Key takeaways

• Obtain your Commercial Driver's License (CDL) first and create a comprehensive business plan that includes financial projections, market analysis, and operational details to secure funding and guide your trucking company's development.
• Complete all federal and state legal requirements including USDOT registration, FMCSA authority, UCR permits, IFTA licensing, and appointing process agents in each operating state to ensure legal compliance.
• Secure adequate insurance coverage including primary liability ($750,000-$1 million), cargo protection, physical damage, and workers' compensation to protect your business from accidents and regulatory requirements.
• Budget $15,000 to $175,000 for startup costs with your commercial truck representing 60-80% of initial expenses, and consider leasing options if purchasing outright exceeds your available financing.

Why start a trucking company?

Starting a trucking company offers several compelling advantages for entrepreneurs:

• High demand: A national driver shortage creates ongoing opportunities for new trucking businesses
• Recession-resistant income: Goods need to be transported, no matter the economic conditions.
• Independence and flexibility: Be your own boss with control over routes and schedules
• Solid profit potential: Good margins for owner-operators who manage costs effectively

You’ll need to manage long hours, time on the road, and your health while driving.

Types of trucking companies

Trucking business types vary by service area and cargo specialization. Most trucking companies operate locally, often within a 100-mile radius. Choose the type of trucking business that matches your goals and resources:

• Owner-operated companies: Single truck operations where you own or lease one vehicle and complete contracts independently
• Interstate trucking: Long-distance cargo transport across state borders requiring larger trucks and additional permits
• Moving companies: Help businesses relocate offices or families move homes, operating locally or interstate
• Tow truck services: Vehicle recovery, accident towing, or trailer transport using flatbed trucks
• Freight haulers: Transport various cargo types including livestock, produce, and farm goods
• Dump truck operations: Construction material transport like gravel and dirt
• Long-haul trucking: Cross-country freight transport with 18-wheelers under strict regulations
• Franchise operations: Join established logistics networks like Unishippers Global Logistics

How to start a successful trucking company

Starting a trucking company legally requires completing specific regulatory and business setup steps. Follow these 10 steps to meet federal and state requirements and get your trucks on the road.

1. Obtain a commercial driver's license (CDL)

A Commercial Driver's License (CDL) is legally required to operate commercial trucks and is your first step toward trucking business ownership. CDL requirements vary by state but typically include written and driving tests.

You can get your CDL through several training options:

• Truck driving schools with hands-on instruction
• Company-sponsored training programs
• Free state and local government classes
• Employer training programs for skill updates

2. Prepare a business plan

A trucking business plan maps out your strategy, finances, and operations while helping secure funding for startup costs. Banks and investors typically require a comprehensive plan before approving loans.

Create a business plan for your trucking company. You can use these tips and this template for a simple one-page plan. Your business plan should include:

• Executive summary: Summarize your overall business plan with the key points
• Company overview: Explain what kind of trucking company you plan to run and the details of your business model.
• Industry analysis: Document your market research and results of your findings.
• Customer analysis: Provide the breakdown and details of your research into likely potential customers.
• Competitive analysis: Outline details about the small businesses you have defined as competitors. Note that these are businesses of a similar size and type to yours, not the large, traditional trucking companies that have fleets of trucks.
• Marketing plan: Explain your unique selling proposition (USP) and how you plan to advertise your business, including the types of promotions you plan, and platforms, such as social media you'll use for marketing.
• Operations plan: Detail your likely staffing needs, suppliers and vendors, such as mechanics and truck part suppliers.
• Management team: Describe your team, even if it’s just you to start
• Financial plan: Detail how you'll finance the startup phase of your business, as well as the next three years

3. Decide your business structure

Business structure determines your legal liability, tax obligations, and operational flexibility. For trucking companies, choosing the right structure protects your personal assets from business risks and accidents.

3 main options for trucking businesses:

• Sole proprietorship: This is the easiest business structure to set up. It's operated by an individual, and any income or losses generated by the business are received by the owner. You file a personal tax return, and include your business income and expenses in it. Sole proprietors don't have any protection from liabilities other than insurance, so their personal assets are at risk.
• Limited liability company (LLC): An LLC provides limited liability protection, making it a popular choice for trucking companies as it also provides some flexibility in management. In terms of tax, it offers pass-through tax benefits. To register for an LLC, apply via your state authorities. The requirements are different in each state so check your state website for details.
• Corporation: A corporation has shareholders, officers, and directors. The shareholders collectively own the corporation, and the corporation owns the business. A C corporation pays tax on its profits and doesn't have as many restrictions on who can be shareholders as an S corporation, which is a pass-through tax entity. Personal assets are protected in both.

4. Register your business

To operate your business legally, register your business and apply for a business license. You’ll need this documentation to open a business bank account, apply for loans, and pay your taxes.

Apply for your business license with your state authority. You may need to register in each state where you operate. For more details, see this guide on how to get a business license.

If you operate under a trade or brand name, you may also need to register for a DBA (doing business as) certificate.

When you apply for a business license, you’ll need to provide basic information about your business:

• Your business name
• Your business address
• Details of the owners, business structure, and directors if you have them

You may need to apply for an employer identification number (EIN) from the Internal Revenue Service (IRS) to report and pay taxes. You can apply online or by mail.

5. Complete legal requirements

Trucking legal requirements ensure safety, track vehicles for inspections, and enable interstate commerce. These federal and state regulations vary by business type but are mandatory for legal operation.

Required registrations and permits:

• Apply for a US Department of Transportation (USDOT) number for inspections and accident investigations
• Register with the Federal Motor Carrier Safety Administration (FMCSA) for authority to operate across state lines
• Register for a unified carrier registration (UCR) permit.
• Get an international fuel tax agreement (IFTA) license and stickers. You need these when driving in multiple states for filing fuel tax reports each quarter.
• Pay heavy vehicle user tax.
• Get a SCAC (standard carrier alpha code) from the National Motor Freight Traffic Association.

6. Choose a process agent

You need a process agent in each state where you operate. This is a Federal Motor Carrier Safety Administration (FMCSA) legal requirement. The process agent represents your business if you receive legal documents.

7. Set up a business bank account

Choose a bank and open a business bank account. Keeping your personal and business finances separate helps you track income, expenses, and prepare your taxes. If your bank connects to Xero online accounting software, you can get automatic bank feeds.

When you open a business bank account, your bank will require your EIN (or SSN) and the legal documents as proof of business registration. Most businesses need a business credit card and checking account. Online banking is helpful if you don’t have a branch nearby.

8. Get insurance

Trucking insurance protects your business from accidents, cargo damage, and liability claims. It also helps you meet regulatory requirements for permits and licenses.

Essential coverage types:

• Primary liability insurance: at least $750,000 coverage for damage or injury (many brokers require $1 million)
• Trucking insurance: Combined liability and cargo protection with required BOC-3 filing
• Cargo insurance: Covers goods you're transporting
• Physical damage insurance: Protects your truck from accident damage
• Workers' compensation: Required if you have employees

9. Arrange startup financing

Trucking startup costs usually range from $15,000 to $175,000, depending on whether you buy or lease equipment. A clear financial plan helps you secure funding and manage cash flow in your first year.

Major startup expenses include:

• Registration, permits, and licenses
• Maintenance fees, spare parts
• Purchase or lease of a commercial truck
• Office expenses, and software such as Xero online accounting software
• Fuel costs

Financing options for trucking businesses:

• A loan from the SBA or a bank
• Personal savings
• Investment capital from an investor, entrepreneur, or family and friends
• An equipment financing loan
• Credit card financing

Once your business is established, manage cash flow and build strong operations to avoid slow periods.

10. Get a commercial truck

Choosing a commercial truck is your largest startup investment. It often makes up 60 to 80 percent of your initial costs. Your truck choice affects your capacity, maintenance costs, and profit potential.

Key truck selection factors:

• Main purpose: decide if you’ll operate locally or long distance, as this affects the size of truck you need
• Buy or lease: consider leasing if buying a truck is too expensive; options include full lease, terminal rental adjustment clause (TRAC), or lease purchase plan
• Price: set your budget based on available financing
• New or used truck: consider a used truck to save money, but check its condition and paperwork
• Weight limits: check weight restrictions for your cargo and factor in permit costs
• Cab design: choose a cab with enough sleeping space if you’ll drive long distances

Manage your trucking business finances with confidence

Successful trucking businesses require more than just moving cargo – they need strong financial management to track expenses, manage cash flow, and maximize profitability. From fuel costs and maintenance to permits and insurance, every expense impacts your bottom line.

With Xero online accounting software, you can track expenses automatically, see your cash flow in real time, and connect your bank accounts. Focus on driving and growing your business while Xero handles the financial details.

Start your trucking company with confidence. Try Xero for free and see how easy financial management can be.

FAQs on starting a trucking business

Here are common questions and answers on how to start a trucking company.

How profitable is a trucking business?

Trucking businesses can generate over $400,000 in annual revenue. As an owner-operator, you could earn $100,000 to $300,000 per year, depending on your routes, efficiency, and business management.

What type of truck drivers make $300,000 a year?

Owner-operators who run their own trucking businesses, manage multiple trucks, or specialize in high-value cargo can earn $300,000 a year. You can reach this by controlling your rates and keeping expenses low.

How much does it cost to start a trucking company?

Startup costs range from $15,000 to $175,000. This includes your truck down payment or lease, insurance, permits, and operating capital for the first few months.

Do I need trucking experience to start a company?

Driving experience helps, but you can start a trucking company by getting your commercial driver’s license (CDL) through driving school. You can also learn business operations through industry resources and mentorship.

What's the difference between an owner-operator and a trucking company?

Owner-operators usually run a single truck as independent contractors. Trucking companies may own several vehicles, hire drivers, and operate as larger businesses with employees.