How to Start a Trucking Company: Complete Step-by-Step Guide

Why Start a Trucking Company

There are roughly 3.5 million truck drivers in the United States¹, and freight volume is projected to grow 25% over the next decade. Somebody has to move that freight, and for owner operators who run a disciplined business, the earning potential is substantial. A single-truck operation with its own authority can gross $180,000-$280,000 per year depending on equipment type, lanes, and market conditions. After all expenses, that leaves $50,000-$100,000 in net income -- more than what most company drivers earn, with the added benefit of building equity in a business you own.

But here is the part that promotional materials leave out: starting a trucking company is not just getting a CDL and buying a truck. It is a sequence of legal filings, financial decisions, and operational setups that must happen in the right order. Skip a step or get the sequence wrong, and you are either sitting idle waiting for a missing permit or hemorrhaging money on equipment you cannot legally operate.

This guide walks you through 15 steps from blank page to first load, with real dollar amounts, realistic timelines, and the insider knowledge that comes from watching hundreds of owner operators launch their businesses -- some successfully, some not. If you want the condensed equipment and compliance checklist, our owner operator starter stack covers that in detail. This guide goes broader and deeper, covering everything from your business plan to your first year of operations.

Use our Startup Cost Calculator alongside this guide to plug in your specific numbers as you work through each step.

Step 1: Write a Business Plan

Skip this step and you are guessing your way through a six-figure commitment. A trucking business plan does not need to be 40 pages of corporate fluff, but it does need to answer three critical questions: How much will it cost to launch? How much will you earn per month? And how long until you break even? For a full section-by-section walkthrough with financial projection formulas, see our trucking business plan guide.

What Your Business Plan Should Include

Revenue projections. Start with conservative assumptions. A single dry van pulling one load per day at an average rate of $2.50/mile running 2,500 miles per week grosses about $6,250 per week or $25,000 per month. That is a reasonable starting target for a new authority, though your first few months will likely come in lower as you build broker relationships and learn your lanes.

Lane strategy. Decide where you plan to operate. Are you running regional within 500 miles of home? Long-haul coast to coast? Dedicated lanes between two or three cities? Your lane strategy affects everything -- fuel costs, home time, wear on your truck, and the rates you can command. Operators who specialize in specific lanes typically earn more per mile than those who chase freight randomly across the map.

Expense projections. List every cost: truck payment, insurance, fuel, maintenance, permits, ELD, factoring fees, tolls, food, and phone. Be honest and round up. If you think fuel will cost $4,000 per month, budget $4,500. For a detailed breakdown of every expense you will face, see our owner operator expenses breakdown.

Break-even analysis. With your revenue and expense projections, calculate the revenue per mile you need just to cover costs. For most single-truck operations, the break-even cost per mile falls between $1.50 and $2.00. Anything you earn above that is profit. If you cannot consistently book loads above your break-even rate, the business does not work.

Timeline. Map out when each expense hits and when revenue starts flowing. There is always a gap between spending money (day one) and earning money (30-60 days after your first delivery). Your business plan should account for that gap with cash reserves or a factoring plan.

Step 2: Choose Your Business Structure

Your business structure affects taxes, personal liability, and how lenders and brokers view your operation. The three most common structures for trucking companies are sole proprietorship, LLC, and S-Corporation.

Sole Proprietorship

The simplest structure. You file a Schedule C on your personal tax return and report all business income and expenses. There is no legal separation between you and the business, which means your personal assets -- house, savings, vehicles -- are exposed if someone sues the company or you get into an accident that exceeds your insurance limits.

Pros: Zero setup cost, simplest tax filing, no state paperwork. Cons: No liability protection, harder to get business credit, looks less professional to brokers and shippers.

LLC (Limited Liability Company)

The most popular structure for new owner operators, and for good reason. An LLC creates a legal separation between your personal assets and the business. If the company gets sued, only the business assets are at risk (assuming you maintain proper separation between personal and business finances).

Pros: Personal asset protection, easy to set up ($50-$500 depending on state), flexible tax treatment, professional appearance. Cons: Annual state fees in some states ($50-$800), slightly more complex tax filing, need to maintain a separate business bank account.

S-Corporation

An S-Corp is a tax election that can be layered on top of an LLC or a corporation. Once your net income exceeds roughly $60,000-$80,000 per year, an S-Corp election can save you significant money on self-employment taxes. Here is why: as a sole proprietor or single-member LLC, you pay 15.3% self-employment tax on all net income⁵. With an S-Corp, you pay yourself a "reasonable salary" and take the remaining profit as distributions, which are not subject to self-employment tax.

Example: You net $90,000. As a sole proprietor, you owe about $13,770 in self-employment tax. As an S-Corp paying yourself a $55,000 salary, self-employment tax applies only to the salary ($8,415), and the remaining $35,000 in distributions is exempt. That is a savings of roughly $5,355 per year.

Pros: Significant tax savings once income exceeds $60,000-$80,000 net, maintains liability protection. Cons: Requires payroll setup and quarterly payroll tax filings, more accounting complexity, must pay yourself a "reasonable" salary (the IRS scrutinizes this).

Our Recommendation

Step 3: Get Your EIN from the IRS

Your Employer Identification Number (EIN) is the federal tax ID for your business. You need it before you can apply for MC authority, open a business bank account, or set up factoring. Think of it as your business's Social Security number.

Getting an EIN is free and takes about five minutes online at irs.gov⁹. Apply through the IRS EIN Assistant, answer a series of questions about your business structure and activities, and you receive your EIN immediately upon completion. Print the confirmation letter and save it -- you will need this number on nearly every form you fill out going forward.

Step 4: Apply for MC Authority Through FMCSA

Your Motor Carrier (MC) number is the federal license that authorizes you to haul freight for hire across state lines. Without it, you cannot legally operate as a for-hire carrier. The FMCSA handles all carrier registrations through the MOTUS portal at portal.fmcsa.dot.gov¹⁰.

The Application Process

1. Create an account on the MOTUS portal.
2. Apply for a USDOT number (your safety registration) and MC authority (your operating license) in the same application.
3. Select "Carrier -- Property" for standard freight operations.
4. Pay the $300 filing fee by credit card or ACH².
5. Wait 4-6 weeks for your authority to process.

Common Mistakes to Avoid

• Applying before you have your EIN. The MOTUS system requires it. Get the EIN first.
• Selecting the wrong authority type. "Carrier -- Property" is what you want for hauling general freight. "Broker" authority is for freight brokerages. "Freight Forwarder" is something else entirely.
• Not checking your application status. Log into MOTUS periodically to verify there are no hold-ups or requests for additional information.

Step 5: File Your BOC-3 Process Agent

A BOC-3 filing designates a process agent in every state where you operate¹¹. This agent can accept legal documents on your behalf. The FMCSA requires it before your authority can be activated -- no BOC-3, no authority.

Several national companies handle BOC-3 filings for a one-time fee of $30-$80. CT Corporation and National Registered Agents (NRAI) are two of the most established options. Many online compliance services bundle the BOC-3 with your MC application filing for a flat fee.

File your BOC-3 the same day you submit your MC application. There is no reason to wait, and it removes one potential bottleneck from your timeline.

Step 6: Register for UCR, IRP, and IFTA

These three registrations cover different compliance requirements for interstate operations. New owner operators often confuse them, so here is the breakdown.

UCR (Unified Carrier Registration)

An annual registration required for all interstate motor carriers. The fee is based on fleet size -- $76 for 0-2 power units in 2026⁴. You register through your base state's UCR portal. It takes 15-20 minutes and can be completed online.

IRP (International Registration Plan)

Your apportioned license plate registration for operating across state lines¹². Instead of buying a separate plate in every state you drive through, IRP divides your registration fee among the states based on your mileage distribution. For a new registration with no prior mileage history, expect to pay $1,500-$2,500. You register through your base state's DMV or motor vehicle division. Processing takes 2-4 weeks in most states.

IFTA (International Fuel Tax Agreement)

Your fuel tax reporting license¹³. You file quarterly returns that reconcile the fuel tax you owe in each state based on miles driven versus the tax you already paid at the pump. IFTA decals cost $5-$10 per truck and must be displayed on both sides of the cab. Apply through your base state.

Step 7: Get Commercial Trucking Insurance

Insurance is your largest ongoing expense and one of the most painful costs in your first year. New authorities pay a steep premium because underwriters view you as high risk -- no safety record, no claims history, and a statistically higher accident rate for carriers in their first two years.

What You Need

How to Save on Insurance

Work with specialized trucking insurance agents. General insurance agents do not understand trucking underwriting. A trucking specialist represents multiple carriers and can shop the market for you. Get at least three quotes -- rates can vary by $3,000-$5,000 for identical coverage.

Your driving record and CDL experience matter. Two or more years of verifiable CDL experience with no accidents or violations can shave 10-20% off your premium. Bring your MVR (Motor Vehicle Record) and PSP (Pre-Employment Screening Program) report to every quote meeting.

Consider higher deductibles. Raising your physical damage deductible from $1,000 to $2,500 can lower your premium by $500-$1,000 per year. Just make sure you have the deductible amount in savings.

Compare insurance providers to find agents who work with new authorities and understand the trucking market.

Step 8: Purchase or Lease Your Truck

Your truck is the second-largest startup expense and the asset that generates all your revenue. This decision deserves serious research, not an impulse purchase off a dealer lot.

New vs. Used

Used trucks (3-7 years old, 300,000-600,000 miles) are the practical choice for most new owner operators. Prices range from $40,000-$90,000 depending on make, model, year, mileage, and condition. A 2019-2021 Freightliner Cascadia or Kenworth T680 in the $55,000-$80,000 range is a common starting point.

New trucks ($150,000-$200,000+) are rarely the right move for a startup. The monthly payments on a new truck can eat 30-40% of your gross revenue, leaving almost no margin for profit. New trucks make sense for established operators with contract freight and a clear ROI calculation.

What to Look For in a Used Truck

• Engine platform. The Detroit DD15, Cummins X15, and Paccar MX-13 are the most common and most serviceable. Avoid orphan engines or rare configurations that make parts hard to find.
• Maintenance records. A complete maintenance history is worth more than low mileage. A truck with 500,000 miles and full records is a safer buy than one with 300,000 miles and no documentation.
• Pre-purchase inspection. Pay a qualified diesel mechanic $150-$300 to inspect the truck before you buy. This is not optional. A mechanic can spot a $10,000 problem that looks like nothing to an untrained eye.
• Emissions system. DPF (Diesel Particulate Filter) and DEF (Diesel Exhaust Fluid) system repairs are expensive -- $3,000-$8,000. Check for active fault codes and ask about regeneration history.

Financing Options at a Glance

For a detailed breakdown of each financing path, see our guide on truck financing options.

Step 9: Set Up an ELD

The ELD (Electronic Logging Device) mandate⁶ requires every commercial motor vehicle to use a registered ELD to record hours of service. This is not optional -- operating without one is a federal violation that can result in an out-of-service order during a roadside inspection.

Choosing the Right ELD

For a single-truck startup, the choice comes down to two categories:

No-monthly-fee devices like the ELD Mandate ($150-$200 hardware, $0/month) or Garmin eLog ($250, $0/month) handle basic compliance without recurring costs. They record your hours, store your logs, and display them for DOT officers. What they do not do is provide GPS tracking, fleet management dashboards, or dashcam integration.

Subscription-based platforms like Motive (Keep Truckin) or Samsara ($0 hardware with contract, $30-$45/month) offer compliance plus a full suite of fleet management tools -- GPS tracking, DVIR (Driver Vehicle Inspection Reports), AI dashcam integration, real-time alerts, and analytics. If you plan to grow beyond one truck, investing in a platform from day one saves you from switching later.

Install your ELD during the waiting period while your authority processes. Test it thoroughly -- drive around, verify it is recording correctly, and get comfortable with the interface before you are hauling a load under pressure.

Compare ELD providers on our comparison page for detailed feature breakdowns, pricing, and driver ratings.

Step 10: Set Up Accounting and Bookkeeping

This is the step most new owner operators skip or postpone, and it costs them dearly at tax time and during financial decision-making all year long. You do not need a full-time bookkeeper on day one, but you absolutely need a system.

Minimum Viable Accounting Setup

Separate business bank account. Open a dedicated checking account for the business. Every dollar of revenue goes in, every business expense comes out. Never mix personal and business funds. This is not just good practice -- if you have an LLC, commingling funds can "pierce the corporate veil" and eliminate your liability protection.

Accounting software. QuickBooks Self-Employed ($15/month) or Wave (free) are popular options for single-truck operations. These platforms track income and expenses by category, generate profit and loss reports, and simplify quarterly tax estimates. Some trucking-specific options like ATBS (American Truck Business Services) offer bookkeeping tailored to owner operators for $50-$100/month.

Mileage and expense tracking. Track every mile and every expense from day one. Fuel, tolls, maintenance, meals on the road, phone bills, ELD subscriptions, insurance -- everything. The IRS allows a per diem deduction for meals while traveling⁷ that can reduce your tax bill by $10,000-$15,000 per year, but only if you have records.

Quarterly estimated tax payments. As a self-employed business owner, you are required to make quarterly estimated tax payments to the IRS (and most states). Miss these payments and you face penalties. Set aside 25-30% of net income for taxes and pay quarterly using IRS Form 1040-ES. Your first quarterly payment is due April 15 of the year you begin operating.

Step 11: Get a Fuel Card

Fuel is your largest variable cost -- typically 30-40% of gross revenue. A fuel card with network discounts can save $0.20-$0.60 per gallon at major truck stops. At 1,000-1,200 gallons per month, that is $200-$720 in monthly savings going straight to your bottom line.

What Fuel Cards Offer

• Per-gallon discounts at participating truck stop chains (Pilot/Flying J, Love's, TA/Petro)
• Detailed fuel reporting broken down by transaction, driver, and location
• IFTA reporting data that simplifies your quarterly fuel tax filings
• Purchase controls that limit transactions to fuel only (prevents unauthorized purchases)

Choosing the Right Card

The best fuel card depends on which truck stops are on your regular routes. There is no point in getting a card with massive Pilot discounts if you primarily run lanes served by Love's locations. Look at the network map, compare discount levels, and check for monthly fees or minimum purchase requirements.

Some factoring companies bundle fuel cards with their factoring programs, which can simplify your operations by putting payments and fuel on one platform.

Compare fuel cards to see current discount levels, network coverage, and fee structures.

Step 12: Set Up Factoring or a Line of Credit

Cash flow is the number one killer of new trucking businesses. You deliver a load today, but the broker does not pay for 30-60 days. Meanwhile, your truck payment, insurance, fuel, and living expenses do not wait. Without a plan for this payment gap, you will run out of cash before you run out of loads.

Freight Factoring

Factoring lets you sell your invoices to a factoring company for immediate payment. You submit the invoice and proof of delivery, they advance you 90-97% of the invoice value within 24 hours, collect from the broker on normal terms, and release your reserve (minus their fee of 1-5%) once the broker pays.

For most new owner operators, factoring is not optional -- it is a survival tool. Without it, you need enough cash reserves to cover 60-90 days of expenses before revenue catches up. With factoring, you need reserves for about 7-14 days.

What to look for: No long-term contracts, same-day funding, rates under 3% for recourse factoring, no hidden fees for ACH transfers or invoice submissions. Avoid companies that charge setup fees, minimum volume fees, or early termination penalties.

Compare factoring companies to find the best rates and terms for new authorities.

Line of Credit

A business line of credit gives you access to a revolving fund you can draw from as needed. Interest rates run 8-15% for small trucking businesses, and you only pay interest on what you draw. Lines of credit are harder to get with a new authority -- most banks want 1-2 years of business history. But if you can qualify, a line of credit is cheaper than factoring for operators who only occasionally need cash flow help.

Which One?

Start with factoring. It is easier to get approved, requires no credit check on you (the factoring company checks your brokers' credit, not yours), and solves the cash flow gap immediately. As your business matures and you build cash reserves, you can reduce your reliance on factoring and eventually replace it with a line of credit or self-funded cash flow.

Step 13: Build Carrier Packets and Broker Relationships

Before a broker will book you a load, they need your carrier packet on file. This is a standard document package that proves you are a legitimate, insured, authorized carrier. Having it ready to send within minutes -- not hours -- is the difference between getting booked and losing the load to another carrier.

Your Carrier Packet Should Include

• W-9 form (for tax reporting)
• Certificate of insurance (your agent can send this directly to brokers)
• Copy of MC authority letter from FMCSA
• Equipment list (truck year, make, model, VIN)
• Signed broker-carrier agreement (each broker provides their own)
• Void check or direct deposit form for payment setup
• Copy of your CDL (some brokers request this)

Keep everything in a single digital folder as clean, professional PDF files. When a broker asks for your packet, you should be able to email it in under five minutes.

Proactive Broker Setup

Do not wait until you need a load to submit your carrier packet. Register with the top 10-15 brokerages before your authority goes active. Major players include CH Robinson, TQL, Echo Global Logistics, Coyote Logistics, Landstar, XPO Logistics, and GlobalTranz. Each has an online carrier onboarding portal. Submit your packet, complete their verification process, and you will be approved and ready to book loads the moment you need freight.

Building relationships with dispatchers and broker reps takes time. Deliver on time, communicate proactively when issues arise (weather, traffic, mechanical delays), and be professional in every interaction. The brokers who trust you become your pipeline to consistent, well-paying freight.

Step 14: Book Your First Load

With everything in place -- authority active, insurance bound, truck ready, ELD installed, broker accounts set up -- it is time to move freight. This is where planning meets reality.

Where to Find Loads

Load boards are your primary freight source in the early months. DAT Power and Truckstop.com are the two dominant platforms, each costing about $150/month. They list thousands of available loads daily with rate information, broker contact details, and lane history. For a new operator, the investment pays for itself many times over.

Supplement paid boards with free options like 123Loadboard (free tier available), Amazon Relay (free, Amazon-only freight), and Direct Freight (free basic tier). The more places you can see available freight, the better your chances of finding profitable loads.

Compare load boards to find the right platform for your equipment type and operating region.

How to Evaluate a Load

Never accept a load based on the headline rate alone. Run the numbers:

1. Calculate your all-in cost for the trip. Fuel cost (miles divided by MPG times price per gallon), tolls, and any lumper or accessorial fees.
2. Subtract costs from the line haul rate. What remains is your gross profit for that load.
3. Divide gross profit by estimated hours. This gives you your effective hourly rate. If a load pays $1,500 but takes 20 hours including loading, driving, unloading, and deadhead, you are earning $75/hour gross. Not bad. If the same $1,500 takes 30 hours, you are at $50/hour.
4. Consider the backhaul. A load that takes you 800 miles to a market with no outbound freight means you are either deadheading back or sitting and waiting. That return trip is a real cost that the original load needs to cover.

Your First Week Strategy

Start with shorter runs -- 200-500 miles -- to iron out your processes. You will make mistakes with paperwork, navigation, ELD management, and communication. Better to make those mistakes on a 4-hour run than a 2-day cross-country haul. As you get comfortable, extend your range and start targeting higher-paying lanes.

Step 15: Track Expenses from Day One

This is not a suggestion -- it is a requirement for survival. Operators who do not track their costs cannot calculate their break-even rate, cannot identify waste, and cannot make informed decisions about which loads to accept or reject.

What to Track

Calculate Your Cost Per Mile

Once you have 30 days of data, calculate your cost per mile. Add up all expenses for the month, divide by total miles driven (loaded and empty). For most single-truck dry van operations, total cost per mile falls between $1.50 and $2.00⁸. If you do not know this number, you are guessing at profitability on every load you book.

Review your cost per mile monthly. Look for trends -- is fuel cost per mile creeping up? Is maintenance spiking? Are you running too many deadhead miles? The data tells you where to focus.

Use our Startup Cost Calculator to benchmark your actual costs against industry averages and identify areas where you are overspending.

Complete Startup Cost Summary

Here is what the full 15-step process costs when you add it all up:

The wide range reflects the difference between a bare-bones launch (older used truck, minimal reserves, leaning heavily on factoring) and a comfortable launch (newer truck, 3 months of reserves, premium tools). Most successful owner operators land in the $30,000-$45,000 range.

Realistic Timeline: Decision to First Load

The 4-6 week authority processing window is your biggest constraint. Use every day of it productively so you are ready to roll the moment your MC number goes active.

What Most New Trucking Companies Get Wrong

After watching hundreds of startups succeed and fail, clear patterns emerge. The operators who fail almost always make the same mistakes.

Undercapitalization

This is the number one killer, and it is not close. Operators who spend every dollar on the truck and authority, leaving nothing for operating expenses, run out of cash within 60-90 days. Broker payments arrive on 30-60 day terms. Insurance is due monthly. Fuel is due every fill-up. If you cannot bridge the gap between spending and earning, the business dies -- even if you have loads booked every day.

Ignoring the Business Side

Driving a truck is only half the job. The other half is running a business: managing cash flow, tracking expenses, filing taxes, maintaining compliance, negotiating rates, and making strategic decisions about lanes and equipment. Operators who treat it as "just driving" consistently earn less and face more financial stress than those who treat it as a business.

Bad Truck Purchases

Buying the cheapest truck you can find without an inspection, buying from a dealer who offers in-house financing at 20%, or buying more truck than you can afford -- these mistakes haunt operators for years. A truck payment that eats 35% of your gross revenue leaves no room for anything else.

Signing Contracts Without Reading Them

Lease-purchase agreements, factoring contracts, exclusive broker agreements -- every one of these can contain terms that look harmless but cost you thousands. Read everything. If you do not understand a clause, ask. If the other party rushes you to sign, walk away.

No Tax Planning

Self-employment tax hits hard when you are not prepared. At $80,000 net income, you owe roughly $12,240 in self-employment tax alone, on top of income tax. Operators who do not make quarterly estimated payments face penalties and a crushing lump sum at tax time. Set aside 25-30% of net income from the start.

Frequently Asked Questions

The FAQ section is built into the frontmatter above for structured data. Here is additional context on common questions.

What Type of Trucking Is Most Profitable?

Specialized freight commands the highest rates. Hazmat, oversized/overweight, refrigerated, and auto transport consistently pay more per mile than standard dry van or flatbed. However, specialized freight also requires additional endorsements, equipment, insurance, and training. For a new operator, dry van is the simplest entry point. You can specialize later as you gain experience and capital.

Should I Get My CDL Before or After Forming My Company?

Before. You need a valid CDL with the correct class and endorsements before you can operate. Most owner operators already have their CDL from driving for a company. If you are entering trucking for the first time, attend CDL school first, drive for a company for 1-2 years to gain experience, and then launch your own operation with real road knowledge behind you.

Can I Run My Trucking Business Part-Time?

Technically yes, but the economics are tough. Your fixed costs -- truck payment, insurance, permits, ELD -- stay the same whether you run 10,000 miles per month or 3,000. Part-time operations spread those fixed costs over fewer revenue miles, which pushes your break-even cost per mile much higher. Most part-time trucking operations struggle to generate enough revenue to cover their fixed obligations.

How Do I Find My First Customers?

Start with load boards and build from there. Your first "customers" will actually be freight brokers who match you with shippers. As you build a track record of reliable service, some brokers will start sending you consistent freight. After 6-12 months, you may develop direct shipper relationships that bypass brokers entirely, but that takes time and reputation.

Next Steps

You now have the complete 15-step roadmap from blank page to operating trucking company. The path forward is straightforward:

1. Run your numbers. Use our Startup Cost Calculator to build a personalized budget based on your specific situation, location, and equipment choices.
2. Start the authority process. Submit your FMCSA application on day one. The 4-6 week clock starts when you file, so do not delay.
3. Line up financing. If you need a truck loan, get pre-approved before you shop. See our guide on truck financing options for a detailed comparison.
4. Plan your cash flow. Decide between factoring and self-funding the payment gap. For most new operators, factoring is the right answer for at least the first 6-12 months. Compare factoring companies to find the best fit.
5. Build your knowledge base. Our owner operator starter stack covers the equipment and compliance checklist in detail, and the owner operator expenses breakdown shows you every cost you will face once you are operating.

The trucking industry rewards operators who plan before they spend, track every dollar, and treat their truck like a business -- not just a vehicle. The steps in this guide are the same ones used by thousands of successful owner operators. Follow them in order, do not skip the financial planning, and you will be in a strong position to build a profitable trucking business.