USDOT Number and Motor Carrier
Number

A United States Department of Transportation (USDOT) Number serves as a unique identifier for companies that operate commercial vehicles to transport passengers or cargo in interstate commerce. Similarly, a Motor Carrier (MC) Number identifies carriers who transport regulated commodities for hire in interstate commercial — or companies that haul loads in multiple states.

You can get both your USDOT Number and MC Number for $300 per operating authority, according to the Federal Motor Carrier Safety Administration (FMCSA).

Truck and Trailer

One of your most crucial trucking company startup costs is
the truck itself. The cost of commercial vehicles can vary dramatically, depending on whether you buy them new or used. For example, a used truck can cost anywhere from $15,000 to $100,000 based on its size and age, while a new truck typically costs between $80,000 and $150,000.

You could also consider renting or leasing a truck, though this option will cost you thousands of dollars per month that only go toward vehicle use, not ownership.

You’ll also need a trailer to attach to your commercial truck, which can add another $30,000 to $50,000 to your costs.

Commercial Driver’s License

If you own a trucking company but are not planning to drive, obtaining a commercial driver’s license (CDL) is not required. However, if you do intend to operate a commercial vehicle, having a CDL is essential, especially if the truck has a Gross Vehicle Weight Rating (GVWR) of 26,000 pounds or more.

The cost of obtaining a CDL varies by state, so there is no universal fee. For example, in Texas, the application fee for a CDL is $97. Additionally, you must complete a CDL training course to qualify for your license, which typically costs significantly more than the license itself. In Texas, these training classes can reach up to $4,500.

Insurance

Operating large commercial trucks requires the right insurance to protect your equipment and drivers. You usually need two main types of insurance: auto insurance and liability insurance. If you drive across state lines, you’ll also need a General Commercial Liability Policy. The rules for intrastate driving can vary by state. Generally, expect to pay between $15,000 and $25,000 per truck for insurance each year.

Business Entity

Setting up your trucking company as a Limited Liability Company (LLC) allows you to keep your business liabilities and personal assets separate, giving you numerous tax and legal advantages. The filing fee for an LLC may cost you between $50 and $800, depending on your state.

Fixed Costs

Fixed costs are expenses that consistently occur, such as monthly truck payments, monthly insurance payments, and bi-weekly payroll. Annually, you will need to pay permit or license renewals. These payments are generally the same every pay term so budgeting for these expenses is usually simple.

Cost Per Mile (CPM)

Your Cost Per Mile is the cost of operating for every mile you drive. It’s found by dividing your costs by the number of miles you drive. Mastering this calculation lets you know the minimum freight rate to accept when booking loads. As a frame of reference, the American Trucking Research Institute (ATRI) reported the average cost per mile in 2023 was $2.27.

Variable Costs

Variable costs are expenses that fluctuate as you run your trucking company. These include fuel, maintenance and repairs, meals, and lodging. Unlike fixed costs, variable costs can be more challenging to predict. However, after a few months of operating your trucking business, you should be able to estimate these variable expenses more accurately.

Operating Ratio

Your operating ratio determines whether you’re operating at a profit or loss. It’s calculated by dividing your expenses by your revenues.