Starting a trucking company involves several startup costs, which can vary depending on the type of operation, the size of your fleet, and your location. Here's a breakdown of the typical expenses involved:
1. Business Formation & Legal Setup
- LLC Formation: $50 - $500 (depending on state fees)
- Business License & Permits: $50 - $300
- Unified Carrier Registration (UCR): $59 - $1,000 (depending on fleet size)
2. Authority & Compliance
- USDOT & MC Number: $300 (FMCSA fees)
- BOC-3 Filing: $20 - $50
- Drug & Alcohol Testing Consortium: $100 - $300 per driver annually
- New Entrant Safety Audit Preparation: $50
3. Insurance
- Primary Liability Insurance: $10,000 - $20,000 per truck annually (depending on driving record and cargo)
- Cargo Insurance: $5,000 - $10,000 annually
- Physical Damage Insurance: 2% - 5% of the truck’s value
- Bobtail/Non-Trucking Liability: $300 - $1500 annually
- Policy Down Payment: 10% of annual policy
4. Equipment Costs
- Truck Purchase:
- New Truck: $100,000 - $200,000
- Used Truck: $30,000 - $150,000
- Lease/Financing Down Payment: 10% - 20% of the truck's price
- Trailer Purchase (if needed): $20,000 - $50,000
- Equipment Maintenance & Repairs: $1,000 - $5,000 (startup buffer)
5. Registration & Permits
- International Registration Plan (IRP): $1,500 - $2,000 annually
- International Fuel Tax Agreement (IFTA): $0 - $500 (varies by state)
- Heavy Vehicle Use Tax (Form 2290): $550 per truck
6. Operational Costs
- Fuel: $1,000 - $5,000 (startup fuel costs)
- ELD (Electronic Logging Device): $50 - $500 plus $20 - $50/month subscription
- Tolls & Parking: $100 - $500
7. Administrative & Miscellaneous
- Factoring Fees (if using a factoring service): 2% - 3% of invoice amount
- Dispatching Services (optional): 5% of load revenue
- Office Supplies & Software: $200 - $1,000
- Marketing & Branding: $100 - $2,000
8. Working Capital
- Cash Reserve: $5,000 - $10,000 (for emergencies and initial cash flow)
Estimated Total Startup Cost
- Low-End Estimate: $20,000 - $50,000 (for a single used truck, minimal expenses)
- High-End Estimate: $50,000 - $75,000 (for a new truck, full compliance, and ample working capital)
Need help navigating these costs and setting up your trucking company? FleetXcel Compliance & Startup Services offers tailored support to help you get started smoothly and stay compliant.