It is possible to start a trucking business today. There is a shortage of 75,000 trucks in the logistics industry. By 2020, there will be 200,000 needed. There are 10-20 full truck loads that need to be moved for every truck currently on the road. As the economy continues to grow, so will the need for trucks to transport freight. This article will teach you how to start your own trucking business.
Start a trucking company and make money
A trucking business in America today is a guaranteed way to make money. You can make income immediately for every truck load you move. People should know that once they get a load, they get paid immediately. There is no waiting. The value of each truck load is determined by what type of trailer it is pulling. You are paid per mile. For example, if you are hauling flatbed products and building materials over 1000 miles, your truck can generate as much as $4000.00 per mile. It is important to choose the right trailer to transport freight and ensure that your driver can handle it.
There are many types of trailers that can haul freight in the transportation industry. Flatbed trailers with refrigerated trailers next are the most lucrative. Although general box freight is less expensive, there are many options. These trailers can be used to transport your truck daily and make you a good income of between $50,000 and $75,000 per year.
Your first six months of freight moving with your trucking company will be the most difficult because your company is still new. A freight broker can help you get dispatched and find consistent freight. Freight brokers work with hundreds of shippers to help you pull freight as a new trucking company. As your business grows, you will find more shippers willing to offer freight after a few months. No matter how new your trucking business is, you can still move freight freight every day with the help of a professional freight broker. It’s important to start by contacting a freight broker to discuss what freight your truck will haul.
It is easy to start a trucking business.
It costs around $1200.00 to start a trucking business. This usually covers the cost of filings. Some states may have different fees so be sure to check with LFS. You will need to apply for your federal number and MC numbers. The cost is approximately $300.00. You will then need to apply for the FMCSA’s UCR filing and IFTA account in order to move freight between multiple states. Professional companies can file these filings on your behalf. The authority will be granted within 21 days. Your MC Authority will be granted Active by the FMCSA after you have waited 21 days.
Last, you must have a Liability policy. This is added to your MC Authority at a minimum $750,000. The FMCSA will allow you to move freight.
Below are the Standard Files required to open your own trucking business.
* USDOT Number – This number is from the U.S. Department of Transportation and it’s used to monitor your company’s safety information. It also allows you to inspect your vehicle, conduct crash investigations, and so on.
* Operating Authority – All for-hire carriers must be authorized by the DOT to transport freight across state lines. Your authority determines the types of freight that you are allowed to haul.
* Heavy Vehicle Use Tax: All trucks over 55,000 pounds are subject to this tax.
* International Registration Plan (IRP). IRP charges registration fees based upon distance traveled within each U.S. state and Canadian province. Register on the transportation website of your state.
* International Fuel Tax Agreement (IFTA). IFTA is an agreement between the lower 48 U.S. States and Canadian provinces that simplifies reporting fuel use by carriers who travel in multiple states. The quarterly fuel tax report is filed by carriers. This reports determines the tax they pay and distributes it to each state. You must have an IFTA sticker on your truck. Every year, you will need to apply for a new one.
* BOC-3 Filing- This is the name of your company’s process agency, who will serve you in any legal proceeding. In each state in which you have an office or contract establishment, you must designate a process representative.
You will usually have between 21 and 30 days to file these paperwork before you receive your first load. You will be included in the New Trucking Entrant Program by the FMCSA. Additionally, you will need to meet with a DOT inspector within the first year for your first safety audit. The requirements can be learned by anyone and the audit should be easy. Many companies can help you understand and keep your trucking company in compliance with the FMCSA guidelines and prepare you for the safety audit. I highly recommend that you work with one of them. JJ Keller is a trusted company that can help you keep compliant and meet your DOT safety inspection.
To start a trucking company, you don’t need a truck
The trucking industry is booming and the freight volume is endless. This is good news for trucking companies owners. Many people believe they have to spend a lot on a truck, which can prove costly. You don’t have to own the truck or trailer. All you need is to be the trucking company owner. You can start a new trucking business by borrowing a truck and trailer from another person. You can register the truck of the owner operator under your authority. You would consider the owner operator a lease-on driver. He would drive your truck and trailer. This method is very popular and you can make at least $500 per week.
In general, insurance companies will allow you to operate 3-4 trucks under the new Federal MC Authority for your first year. You will be monitored to ensure that your trucking business is operating under the new Trucking Entrant program. It is clear that just 4 trucks can bring in $2000 or more per week. Your first year will be a good one. After that, your insurance underwriters will allow you to add trucks to your Federal MC Authority. This will allow you to grow your trucking business organically. After the first year, I recommend that you purchase your first truck or trailer. This will allow you to increase your weekly income by $1000.00 per week.
With your trucking business, you can work remotely
A trucking company does not need to be located in a big trucking yard. Many people start a trucking business from their home. You rarely see your truck moving freight every day, unless you are performing maintenance or checking your equipment. GPS location software allows you to monitor your truck’s activity from your computer. You can work remotely and dispatch your truck daily using full truck loads. A freight broker can dispatch your truck and help you comply with FMCSA guidelines for the first year. A computer and a phone are the basic requirements for dispatching your truck.
If you are a trucking company owner and do not own any trucks, then you will only require a home office to dispatch your trucking business and monitor it. You will only need a basic computer that can display load boards and a Transport Management Software (TMS) to manage your trucking business. You receive the freight load from the truck driver and the documents electronically from their cab. To get paid for your load, you upload the documents and send them to funding. After delivering your freight load, you will usually be paid within a few business days.
TMS software also handles basic truck reporting and accounting. Everything you need to manage your trucking company can be done from the comfort of your own home. This is how you would manage your trucking company. It also includes ensuring that your driver completes their truck inspection reports weekly. You would receive daily reports from the freight broker. These would be uploaded into your TMS software. With only one truck moving freight, you would expect to work a few hours per day from your home office.
Owning your own trucking business and working from home can be extremely rewarding. Many freight brokers who also own trucking companies are also freight brokers. Combining both businesses together can give you an incredible opportunity to make logistics a serious home-based business.