The Facts & Figures: How Much Does it Cost to Start a Trucking Company?
June 17, 2021
Are you ready to work for yourself? Find yourself wondering how much does it cost to start a trucking company? Some estimates anticipate between
$10,000 and $20,000 to get started with a small trucking company, assuming you don’t have to factor in the average cost of a semi truck. What goes into the cost of starting a logistics company? Let’s take a look.
Start-Up Costs
- Registration and formation documentation will run you between $900 and $1500, on average. This includes paperwork like your LLC formation documentation, your EIN, your USDOT and MC numbers, and more.
- An “international registration plan” account (or IRP, and otherwise known as apportioned plates) is required for companies whose trucks (over 26,000 pounds) travel over state lines. The IRP and the International Fuel Tax Agreement (IFTA) “consolidate licensing and reporting requirements through the base (home) state.” These fees vary by state, but typical fees are between $1500 and $2000.
- A Heavy Vehicle Use Tax (and a permit) will come with a price tag between $100 and $600 per truck. Note that while this is a start-up cost, it is also an annual fee for heavy vehicles that travel across public highways.
- An insurance down payment (per truck) will also be required. Estimates recommend anticipating between $2000 to $48,000 per truck.
- Be prepared to pay roughly $500 per truck for other, miscellaneous state-specific taxes.
- Of course, you can’t start a trucking company without buying or leasing a truck. The average cost of a semi-truck varies
widely depending on if you’re buying new or used. On the low end, a used semi-truck will cost $30,000 and a new truck will cost $130,000. On the high end, those numbers raise to $180,000 to $200,000, respectively. Leasing requires less up-front cash; you’ll likely need a down payment around $1000, and then you’ll pay monthly payments between
$800 and $2500.
Ongoing Costs
- If you’re hiring drivers, you’ll need to factor salaries into your ongoing costs. Indeed’s most recent average base salary for a truck driver is roughly $63,000, though lower estimates hover around the $45,000 range. Keep in mind that some drivers are paid hourly, while other companies choose to pay their drivers by the mile.
- A fleet management system simplifies important tasks like annual registrations, maintenance, driver schedules, and routes. Many fleet management systems can even integrate with your driver monitoring and pre-employment background checks (link to “Fleet Safety Program: 4 Important Things to Remember”). If your fleet includes several trucks, it might be a worthwhile investment. System costs vary depending on complexity, but on average it will cost $35 per vehicle, per month.
- To pay for these costs, you need loads. There are several ways you can find loads for your trucks (link to “Blueprint to Find Truck Loads for Your Fleet”), and costs will vary depending on which method you choose.
- Finally, don’t forget to factor in maintenance and fuel costs (link to “Commercial Vehicle Maintenance Checklist”).
Starting any company comes with a price tag, and the cost of starting a logistics company is no different. But if you find yourself searching “how much does it cost to start a trucking company?” then you’ve already got the urge to get into this field—and Gold Star can help. Our consultative services have helped people just like you get started. Our
authority packages help you establish your company with the necessary forms and registrations, and our
coaching and mentoring programs are available if you need a little more guidance. Let our expert team get you on the road.
It’s impossible to think of the trucking industry without considering Amazon. In 2019, the company delivered 4.5 billion packages in the United States . Their Amazon Delivery Service Partner Program enables anyone with some startup capital the opportunity to get involved in their massively successful business venture. There are pros and cons to becoming an Amazon DSP, but the steady stream of work is certainly eye-catching to start-up trucking companies. Amazon lays out some of the most important information , but let’s take a look at some frequently asked questions.
A thorough, compliant background screening program for your drivers should be the backbone of your hiring strategy. Background checks ensure that your new drivers have all of the qualifications necessary to do the job well and to best represent your company out on the road. Background checks also, of course, weed out any drivers with disqualifying criminal histories, a history of driving violations, and substance abuse problems. That’s why they should be a standard part of your fleet safety program anyway (link to “Fleet Safety Program: 4 Important Things to Remember”). In our regulated industry, a DOT background check is required. Here’s how DOT background check requirements differ from standard employment screening.
It’s the question on the minds of truck drivers, owners, and delivery companies everywhere: will truck driving be automated? Automated trucks have been a conversation point for years now, with many worrying that technology advances will put millions of people out of work. Despite these concerns, the U.S. Bureau of Labor Statistics predicts 5% growth for trucking employment in the coming years. While other industries struggle to adapt to new technology, the trucking industry is greatly benefiting from it. There are a range of opinions when it comes to this question, though most truck drivers seem confident that their jobs can’t (or at least won’t) be done by machines any time soon. Before getting into the trucking industry, it’s important that you take a look at the landscape and make an educated decision about it—but remember there will always be a need to move goods from one place to another, and the explosion in online ordering suggests that need is only going to expand. Let’s take a look at the current state of automated trucks as we dive into the question: will truck driving be automated?
Trucking and logistics is no longer just about getting materials from point A to point B. Much like consumers want to buy their products from socially responsible corporations or boycott businesses that don’t align with their beliefs, many companies want to work with trucking companies that prove they care about the environment. Whether due to their personal beliefs, to the corporate responsibility goals they’re mandated to meet, or to a desire to please their own customer base, you’re serving clients who will ask about your carbon neutral shipping practices sooner rather than later. Now is the time to start taking this topic seriously. Do you find yourself asking “what is carbon neutral shipping anyway?” Are you wondering why carbon neutral shipping might be a benefit? Curious to know how companies become carbon neutral? Keep reading to discover the answers to all of your questions about this climate-responsible approach to business.
The trucking industry landscape is largely made up of small businesses—with over 90% of companies operating fewer than seven trucks—so there is room for you if you’re considering starting a small trucking business. Whether you’re a professional truck driver already or you’re just a prospective business owner looking to cash in on the projected growth in the industry, you can get on the road toward a successful business with our help. What do you need to start your own trucking business? Just a little bit of insight from Gold Star’s experts.
As a big supporter of managing a fleet of well-maintained, safe trucks (link to Fleet Safety Program: 4 Important Things to Remember), Gold Star looks forward to the International Roadcheck every year. This three-day event focuses on motor carrier, vehicle, and driver safety. In 2021, it will run from May 4th to May 6th. The Commercial Vehicle Safety Alliance (CVSA), a nonprofit organization made up of motor vehicle safety officials and industry representatives, leads the cause. Over a 72-hour period, tens of thousands of commercial vehicle inspections will occur across the continent. It is the “largest targeted enforcement program on commercial motor vehicles in the world,” boasting that “nearly 15 trucks or buses [are] inspected, on average, every minute across North America” during the event (per the CVSA website ).