How Much Does It Cost to Start a
Trucking Company?
We’d love to give you a straightforward answer, but the reality is that starting a trucking company comes with varying costs depending on your business needs and location. The cost to start a trucking business can fluctuate based on several factors, including the type of trucking operation, the freight or cargo you plan to haul, insurance requirements, and more. For a small trucking company with one or two trucks, new owners typically invest between $10,000 and $20,000. Below is a breakdown of these costs.
Costs of Starting Your Own Trucking Company
Starting a trucking business involves several upfront costs. Once these are covered, you can focus on ongoing operational expenses.
Here’s an overview of the primary startup costs:
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.
Startup & Registration Costs for New Trucking Companies
The Apex Startup Program offers customized service plans tailored to your specific needs, rather than limiting you to a few set-price packages. Our administrative fee is based on the services you require and the state where you’re starting your trucking business. For a full-service setup, Apex Startup Clients typically pay between $1,000 and $1,600, which includes both filing fees and our administrative fee. If you’re not setting up an LLC and only need services like DOT, MC, BOC-3, and UCR registration, the cost can go as low as $840.
Our Current Filing Options:
Entity Formation Document (LLC) – Secretary of State
SS4 for Employer Identification Number (EIN) – Internal Revenue Service (IRS)
USDOT & MC Numbers – Federal Motor Carrier Safety Administration (FMCSA)
Once you’ve established your trucking business with the necessary permits and authority to transport freight, it’s time to consider your ongoing operational costs. Understanding the different types of costs will help you anticipate expenses and set a budget for your company.
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 2019 was $1.65.
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.
Starting a Trucking Business Is Hard—We’re Here to Make It Easier
We understand that this information can feel overwhelming. That’s why we’re here to support you every step of the way! By choosing the Apex Startup Program, you gain the time and resources to focus on other important aspects of your business, like equipment, insurance, and creating a profitable business plan.
Additional Resources to Start Your Trucking Company
Now that you have a better idea of the costs to start a trucking company read “7 Steps to Starting a Successful Trucking Company” to make sure you stay on the right track
If you’re worried about cash flow, we can help! Factoring your freight bills is the best way to access cash quickly, helping you better anticipate expenses and budget with confidence.