Perhaps you’re done with driving for others, and you’d like to launch your very own trucking business. Or you’re from an entirely different profession and you think it’s a good time to jump into the hauling business.
The question is, how much will it cost to start a trucking business? Continue reading below to find out how much it will cost you to start your own trucking business.
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Business Formation
The very first step in the process is registering and forming your business. The first two things you’ll need to do are start an LLC and obtain an employer identification number (EIN).
The filing fee to start an LLC can range from $50 to $500, depending on the state. Getting an EIN is free, although if you’re starting your business through an agency, they may charge you for this.
Business Licenses, Permits, and Taxes
Next, you’ll need all the necessary licenses and permits before you open your doors for business.
You’ll need to get your US Department of Transportation (USDOT) Number and Motor Carrier Operating Authority (MC) number. There’s are usually rolled into one filing cost of $300.
You’ll also need to pay a Unified Carrier Registration (UCR) fee depending on the number of vehicles you intend to operate. For up to two trucks, it costs $69, and from three to five, the fee is $206.
You’ll also need to pay for IRP plates and IFTA fuel tax decals. Depending on the state, the IRP plates can cost anywhere from $1,500 to $3,000 per truck.
The IFTA fuel tax decal costs only $2, but you’ll need to track the amount of fuel purchased and mileage a truck traveled in each state. The IFTA will then determine each quarter if you need to pay taxes on fuel or if you get money back.
Of course, you’ll also need to make sure that each driver has a CDL license and endorsements. Depending on the type of cargo you ship, a driver will require an endorsement.
For example, an H endorsement is for hazmat. It costs $187 total and allows drivers to transport hazardous materials.
Lastly, every truck you operate has a Heavy Vehicle Use Tax. The tax depends on the state and can cost $100-$550. There may be other heavy vehicle taxes that you need to pay, depending on the state.
Equipment Cost
Next, you’ll need to put a down payment to start operating a truck. Unless you can find a second-hand truck in excellent condition, it’s best to get new vehicles.
Maintenance costs on old vehicles can end up costing way more than a new vehicle. Unless you’re purchasing upfront, most down-payments will cost anywhere from $3,000-$10,000 per truck depending on your credit score.
Insurance Cost
The last major hurdle before you can get your rigs on the road is insurance. Insurance cost depends on factors like the truck’s condition and age, what type of equipment is hauled, and where your business is located.
Insurance costs can be $5000-$7000 per year. However, in the beginning, the upfront cost monthly will be around $600.
How Much Does It Cost To Start A Trucking Business?
The final cost is highly variable depending on which state you live in and how many vehicles you want to operate. Using the information above will likely cost around $10,000-$15,000 to begin operating a couple of trucks.
The highest cost of starting a trucking business is getting the trucks themselves. The rest is obtaining permits and filing certain documents.
However, once your operations start, you’ll need to start thinking about fuel costs, maintenance, and marketing costs.
Now that you know how much it costs to start a trucking business, you can start saving and shopping around for loans to get your business on the road.
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