January 29, 2018
How Much Money Do You Need to Start a Trucking Company?
If you’re getting ready to do your taxes and your tax return, there are two words that you may be hearing soon: “tax refund.” What are you going to be spending your tax refund on this year? While you could splurge on food or a new accessory for your truck, what about using it to fund your own trucking company? Here’s a brief overview of how much it costs to start your own trucking business:
MC Number/USDOT Number – $395
There is a $300 FMCSA filing fee to get your MC Number/USDOT Number. Progressive Reporting can get your USDOT number within an hour for $395.
BOC-3 Processing Agent – FREE with Progressive Reporting
As part of the New Motor Carrier Authority package that Progressive Reporting provides, the BOC-3 Agent Filing is FREE! Other places might have you pay somewhere between $10 to $50 for the BOC-3 Processing Agent.
Business Registration – $50 – $500
The cost of business registration varies per state. For example, the cost to register an LLC in Utah costs $70.
Trucking Insurance – $9,000-$12,000 per Year per Truck
This number can change based on the experience of the driver, the type of coverage, and the model and year of truck.
Unified Carrier Registration (UCR) – $69+
The fees were updated in 2018. The original fee started at $76 for 0 to 2 vehicles. The UCR Fee is now $69 for 0 to 2 vehicles.
Truck – $15,000 – $175,000
The price of the truck varies if you choose to buy a used truck or get a truck on a lease. You can most likely expect to pay a downpayment of anywhere between $1,000 to $10,000!
IFTA Reports – $150 per Quarter With Progressive
Progressive Reporting makes filing your IFTA reports easy.
Depending on the type of trucking company you want to open, it can cost at least $10,000 to get started, not including fuel and other running costs, but once you get on the road, it’s worth it. With the extra cash in your pocket from your tax refund coming, now is the perfect time to start your trucking company! Get started TODAY with Progressive Reporting. We can help you every step of the way to get your new business on the road.
How Does the Cost Change Based on my Company?
Many of the costs of starting a trucking company vary depending on what you want to haul, where you want to haul, and what truck you get. While the cost of getting a USDOT/MC Number does not change, there are a few other costs that can change according to the needs of your company:
Business Registration Cost
While the cost of an LLC varies between $50 to $500 depending on the state, there are a number of other options to consider, too. You don’t have to choose to register your company as an LLC. You can also choose between a corporation, sole-proprietorship, or an LLC, which requires a different registration fee. All three options have advantages and disadvantages, as some will adjust how much you have to pay in taxes at the end of the tax year.
Trucking Insurance Cost
Trucking insurance is one of the most complicated parts of starting your own trucking company. As an owner operator, you’ll need to get a certain amount of coverage to be compliant, but some insurance companies won’t provide insurance if your drivers have less than two years of driving experience. When looking for trucking insurance, make sure to get the quotes from at least three companies that specialize in commercial trucking insurance so you can get the right coverage for the right amount.
There are a number of factors that can change the price of a truck, besides the model and year. You can choose to get an old, used truck for as low as $15,000, but if you’re running your company with an older truck, you will be paying much more on maintenance. You can also choose to lease a truck, where you “rent” the truck rather than owning it. Choosing this option can help keep starting costs down, but it doesn’t increase your company’s assets in the long-run.
Are You Ready to Start Your Trucking Company?
If you want to put that extra money from your tax refund toward starting your own trucking company, give Progressive Reporting a call. We can create a customized game-plan for your company to help you become your own boss and get your trucking company on the road.