I talk to ten or so aspiring trucking company owners a week and often times get the same questions. I figured I would take a minute and describe how you can start your own company, the exact process of how you can do it all yourself.
The first step you must take is research. You know that you want to start your company or you would not even be reading this post. You might have a background as a driver, or might just be switching from one career to a new one. The freedom of owning your own company and the ability to make a living while seeing the United States as you drive is something that appeals to many. All those things aside, starting your company is a relatively easy step to achieve if you have the knowledge to do it. Simply having a truck and the ability to drive it does not mean that you should bite the bullet and go out and start your new venture. It takes a lot of money to operate,
whether or not you pair with a factoring company to fund your company’s invoices or not. The insurance payments are high for new ventures as most fail. You will need to know where you want to run, what type of freight you want and are permitted to haul and what type of rate you should be looking for. You will need to know your break-even cost per mile in order to price out your loads. The second step is to file your business name in your state of domicile.
If you are just starting out we recommend you file for an LLC or corporation (we are not lawyers so this is your choice). Filing an LLC protects some of your personal property incase something goes wrong. Again, we are not lawyers so I suggest you consult one should you choose incorporation or to find out which formation would be best for your new venture. TLG Carrier Services can file your corporation documents for a small fee. Read more here. Once you have filed for your new business you will need to file for your EIN with the IRS. This EIN in necessary to file for your MC and DOT numbers. This can be done easily and online on your own very easily by heading over the the IRS site and submitting the request. You will be issued your new EIN Immediately.
The third step is filing for your FMCSA Motor Carrier number. You can easily do this
yourself and the new system is super easy to navigate. I am not going to spend to much time on filing yourself as it is super easy and will upload a video in the near future on how to file.. The one thing to remember is that you need to make sure you choose the correct commodities and operating classification. As soon as you pay the $300 filing fee you will be issued your DOT number and your MC number although you will need to complete some additional steps before you can operate.
The fourth step is to file for your BOC-3. All brokers, forwarders and carriers are required to have a BOC-3 Filing. Essentially a BOC-3 provides you with a representative in each state who can receive service on your company’s behalf.
The next step is to quote and purchase your insurance policy. Depending on where you are located and what you will be hauling your quotes can be pretty high. Some companies allow you to make monthly payments with a large down payment, however some are now splitting the year’s premium payment into two payments making the down payment quite large. I always recommend you shop around.
The sixth step is to file your UCR. Contrary to the mailings and phone calls you get you
can file this online through the State of Indiana’s website. It will not cost you anything additional if you are out of state. Its just $69 for one vehicle.
There are some additional steps, Tag’s, 2290’s etc that we are going to cover in a future blog post