By following the steps below, you’ll be better equipped to launch your company with the appropriate framework from day one. This makes it easier to keep track of things when it’s time to total everything up. One out of every 25 owner-operators gets audited by the IRS for taxes each year. You want to avoid that happening to you, but you want assurances that you’ve done everything right if it does.
If you’re starting a one-person, self-owned trucking company, look into limited liability companies (LLC) to protect your personal assets. If you’re establishing your company with a business partner, you will also want to consider the different kinds of LLCs designed for partnerships (limited liability partnership) and corporations. There are other business entities out there as well worth considering, but it’s best to start with these two categories and determine from there whether or not you need to go with something different.
With five trucks and drivers you could push your profit up to nearly $190,000. It’s a lot of work — you’ll do your own sales and marketing, manage operations, and drive the truck — but the rewards are all yours. Your target market will be just about any company with goods truckers bookkeeping service to transport. A good way to start is to research which businesses transport the most goods and then give them a call offering your services at a discount. If you do a stellar job, you should be able to retain them and gradually increase your price to the market rate.
Monitoring compliance and staying up to date on regulations will be key to winning business as a truck driver. In my case, $20,000 of that went to purchasing my truck and equipment, and $10,000 went to insurance down payments and the required Department of Transportation compliance items. If you already have equipment, your costs will still likely land somewhere in https://www.bookstime.com/ the $5,000-10,000 range, but $30,000 is a fairly typical figure for starting a business with used equipment. Save up money to cover start-up expensesStarting a trucking business requires a big investment up front to purchase a tractor and trailer(s), plus licensing requirements and registration. Identify sources and terms for financing and secure a line of credit.
This is a legal requirement by the FMCSA so don’t skip this important step. One of the first steps in exploring how to start a trucking business is to complete your trucking authority. Trucking businesses need to have an operating authority when they work as a hire carrier over state lines for vehicles more than 10,000 gross vehicle weight (GVW). You can document trucking costs manually, but connecting your business accounts to accounting software is much easier. It can track and categorize your expenses automatically, though you may need to keep some supplemental records.