{"id":8757,"date":"2020-12-11T14:22:51","date_gmt":"2020-12-11T13:22:51","guid":{"rendered":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/?p=8757"},"modified":"2020-12-11T14:22:51","modified_gmt":"2020-12-11T13:22:51","slug":"trucking-2","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2020\/12\/11\/trucking-2\/","title":{"rendered":"How Much Does it Cost to Start a Trucking Company?"},"content":{"rendered":"

Are you a prospective owner-operator looking to start a trucking company? It’s an enticing business opportunity for those who want to earn more money and enjoy more freedom. However, before you even think about investing in a truck business, there are many things you may want to consider first.<\/p>\n

How much does it cost to start a trucking company? What is the owner-operator startup cost? How do you start a trucking company with no money? Perhaps these are a few questions that you have top of mind.<\/p>\n

In this article, we\u2019ll explain the different costs you can expect to face before jumping into a trucking business investment.<\/p>\n

Startup costs for trucking companies<\/h2>\n

The trucking company startup costs usually include the following:<\/p>\n

Commercial driver\u2019s license (CDL)<\/strong><\/p>\n

If you were previously a commercial driver, you perhaps already have your CDL license. In case you don\u2019t, you\u2019ll have to go to a CDL training school, pass a written exam, acquire a CDL permit, train with a supervising driver, complete all required training, and pass your CDL skills test. Every state has a different cost to obtain a CDL license<\/a>.<\/p>\n

USDOT and MC Number<\/strong><\/p>\n

Before starting your own trucking company, you\u2019ll need a United States Department of Transportation (USDOT) number and a Motor Carrier (MC) Number. A USDOT number identifies you as a carrier that\u2019s operating in interstate commerce and an MC number identifies you as a carrier who transports regulated commodities in interstate commerce. You can file for both through the Federal Motor Carrier Safety Administration<\/a> (FMCSA) website for $300.<\/p>\n

Freight truck cost<\/strong><\/p>\n

New trucks are costly, so you\u2019ll need to consider how many you can afford to purchase at first. Some business owners start with just one truck and work their way up. Alternatively, you may want to work in purchasing a small fleet right away into your business plan, along with a plan to recoup the cost as time goes on. A new commercial truck can cost on average<\/a> $113,000 to $125,000, while used trucks<\/a> can go for around $40,000 to $50,000 less.<\/p>\n

Insurance<\/strong><\/p>\n

As a lease owner-operator, insurance is one of the most important fixed costs that you’ll encounter. The amount of insurance you pay per truck will depend on several factors, including the age of equipment, commodities hauled, and location of your truck. Fleets typically spend<\/a> up to $10,000 per truck. Check out these FMCSA insurance requirements<\/a> for more details.<\/p>\n

Recent years have seen a surge of nuclear verdicts, some fleets are paying settlements of up to $280 million.\u00a0 This is having a huge impact on rising fleet insurance costs.<\/a>\u00a0One way to combat these costs is to implement a driver safety solution with video, like Lytx\u2019s video telematics solutions.<\/p>\n

Business entity<\/strong><\/p>\n

You may want to set up your trucking company as a limited liability company (LLC). The state-filing fees for an LLC vary from $50 to $300 depending on the state that you are filing in, with an average state-filing fee<\/a> of $127.<\/p>\n

Ongoing costs<\/h2>\n

How much does it cost to start a trucking company? The total can be divided into the following ongoing costs:<\/p>\n