When most people consider flourishing businesses in the United States, trucking may not be the first industry that comes to mind. The need for truckers and shipping companies is from the fact that this industry has become one of the major businesses in the United States.
Slightly more than 70 percent of all US freight is transported by trucks. There is a constant demand for trucks and, more significantly, trucking businesses. This business controls the delivery of goods worth billions of dollars annually.
It is essential to note that starting a trucking business can be rather challenging. But with some help and following all the steps, you can jump into this fantastic business idea and create your own trucking company. Keep on reading to learn how to start a trucking business in US.
Importance Of Trucking Business
Almost all economic sectors rely on trucks to carry their goods. It begins with transporting raw materials such as timber and stone from forests and quarries to production sites. After these producers complete a product, it is transported by truck to its final location or distribution center.
In the United States alone, about $700 billion in goods are transported by trucks annually. It makes the transportation business essential to economic health.
Step By Step Guide To Start Trucking Business In US
It is now time to look at how to start a trucking business in the US if you have no prior expertise in the industry. Here is a guide to take you through each stage of starting this business, from selecting a company name to acquiring your first customer.
Choose A Business Name And Get A Driving License
To start your own trucking company, you must do a lot of research and preparation. The Federal Motor Carrier Safety Administration (FMCSA) issues a commercial driver’s license (CDL) for anyone with no industry experience and who wants to start a trucking business as a driver.
Choosing a company name for your trucking operation is also critical. Come up with a few concepts. Afterward, ensure that no other businesses use the same name.
You can find out if a business name or trademark is already taken by searching for it on the internet. To use a business name distinct from your first and last names, you must submit a DBA (doing business as). You can also create an LLC or legal entity in your company’s name if you like.
Starting a trucking company is all about finding a suitable market niche. As a specialized carrier, you can bypass giant haulers, create your brand, and maximize your sales prospects by avoiding the competition.
Choose Your Trucking Business Niche
After conducting primary market research, you will be better positioned to choose the type of trucking firm to launch. A trucking company can work with clients from many industries and with varying needs.
You can move huge loads over long distances, manage perishable goods requiring cold storage, or anything else. Trucks deliver nearly all consumer and industrial goods at some time.
Don’t spread yourself too thin by attempting to serve multiple industries. Instead, find your specialty and excel at it. Your prior market study would assist you in selecting the most excellent niche for your trucking company.
Write A Business Plan
A business plan for a trucking company may not appear necessary, considering that the core operational principles are relatively simple. In contrast, writing a business plan focuses your attention on the most critical aspects of your firm. Your company’s mission statement, the resources needed to start, and financial projections showing costs vs. expected earnings are all part of a well-written business plan.
In the beginning, when you’re busy with the grunt work of starting your firm and don’t have time to think about the big picture, you might not be able to handle it. So writing a business plan at the very start can help you stay on track. A well-written business plan before applying for funds will make the procedure much more accessible.
Common Structures Of Trucking Business
- Limited liability corporation (LLC).
- Corporation (C-corp, S-corp, etc).
Each form has benefits and drawbacks, which differ from state to state, primarily due to liability and taxation issues. You may wish to consult with an accountant to determine which business structure is optimal for your company. How income taxes are applied also influences the selection of the optimal business structure.
Select Process Agents
The next stage in launching a new trucking business is selecting a process agent. This agent is the one who can legally represent you when you file business-related court documents. Your organization requires process servers in every state where it travels and conducts business. It is a requirement imposed by the FMCSA; therefore, do not skip this step.
If you ever have difficulty in a different state, process agents can assist you by working on your behalf. Your process agent completes the BOC-3 documentation. Refer to the FMCSA’s website to locate available process agents.