10-Step process of How to Open a Trucking Business
1. Open a company.
It’s important to open a company so that all liabilities fall on the business entity and not under your personal belongings. It is best to open a company before the purchase of a truck to be able to purchase it under the company name. There are many types of companies-LLC, Corporation, Partnership, Etc.
2. Get an EIN.
An EIN is the Social Security of your company.
3. Open a Bank Account under your Company Name.
With the Company Certificate and EIN Letter you can open a bank account to be able to get paid from your trucking business and pay all your company’s expenses.
4. Get a medical card.
All truck drivers are required to obtain a medical card regardless of the weight of the truck. It is used to prove that the driver is physically fit to drive a truck. It is part of the safety protocols for all persons that drive as a profession.
5. Find a truck.
If the gross vehicle weight of the truck is less than 26,001 pounds, the driver does not need a CDL. If the truck’s gross vehicle weight is over 26,001 pounds, then the driver requires a CDL.
6. Get permits.
There are different types of permits needed depending on the type of cargo you will be hauling and the weight of the truck.
7. Get Insurance.
All truck owners are required to obtain insurance. The amount of insurance required depends on the type of cargo being hauled.
8. Register your truck.
Depending on the weight of the truck, you will either register through any DMV with Commercial Plates or through the IRP program with Apportioned plates.
9. Get a contract.
Depending on the type of cargo you will be hauling and weight of your truck you can apply for contract with companies in need of truck drivers or sign up with a dispatcher to get loads for you.
10. Stay Compliant.
You can manage compliance on your own or hire someone to keep you compliant. DOT compliance refers to meeting the standards established in each of several DOT areas of oversight. Violation of any one of them can lead to serious consequences, and commercial motor carriers are regularly monitored to ensure they remain in compliance. DOT compliance refers to successfully meeting the requirements of the U.S. Department of Transportation, the federal agency that enforces rules (DOT regulations) governing the operation of commercial motor vehicles. Failure to be DOT compliant results in a violation of these rules. Violators are subject to sanctions that can include financial penalties (fines), suspension of a company’s permission to operate its commercial vehicle fleet, or jail time.
There are also filings that need to be done on a regular basis depending on the permits that you have.
We want to help you starting your company.