How to Start a Trucking Company: Steps, Costs and Your First Customers

To start a trucking company, you form a legal entity, get a USDOT number and MC operating authority from the Federal Motor Carrier Safety Administration (FMCSA), file a BOC-3 process agent form, buy at least the federally required liability insurance, register for UCR, IRP and IFTA, enroll in a drug and alcohol testing program, and then find freight. The paperwork is cheap compared with the truck, the insurance and the weeks of cash you need before the first invoice is paid.

This guide covers the steps in order, a startup cost table, the “new authority” problem that blocks many new carriers, and how to get the first customers. The written plan that lenders and factoring companies ask for has its own guide: our trucking business plan template.

What are the steps to start a trucking company?

The steps run in a fixed order because several filings depend on the one before. A typical sequence for an interstate for-hire carrier is below.

1. Form a business entity and get an EIN. Most new carriers form an LLC in their home state and request an Employer Identification Number from the IRS, which is free. The EIN is used for the bank account, the FMCSA application and insurance quotes.
2. Get a USDOT number. A USDOT number identifies the company for safety and compliance records. FMCSA moved new USDOT and operating authority applications to its Motus registration system starting May 14, 2026, replacing the older Unified Registration System (URS): https://www.fmcsa.dot.gov/regulations/federal-register-documents/2026-08334
3. Apply for MC operating authority. A for-hire carrier hauling regulated freight across state lines needs an MC number (operating authority) on top of the USDOT number. FMCSA charges a $300 non-refundable fee per authority type: https://www.fmcsa.dot.gov/faq/how-do-i-get-operating-authority-mc-number
4. File a BOC-3. The BOC-3 designates a process agent (a “blanket company”) in every state where the carrier operates. Authority is not granted until the BOC-3 and proof of insurance are on file.
5. Buy insurance and have it filed. The insurer files proof of coverage (Form BMC-91 or BMC-91X) with FMCSA. See the next section for minimum limits.
6. Register for UCR. The Unified Carrier Registration is an annual fee based on fleet size. For 2026 the bracket for 0 to 2 vehicles is $46, and the federal notice of the fee schedule is at https://www.federalregister.gov/documents/2026/09/01/2026-17893/fees-for-the-unified-carrier-registration-plan-and-agreement
7. Get IRP plates and set up IFTA. The International Registration Plan (IRP) apportions registration fees among the states you drive in, and the International Fuel Tax Agreement (IFTA) does the same for fuel tax. Both are handled through your base state, and IFTA requires quarterly reports. Trucks at 55,000 pounds or more also file IRS Form 2290 for the heavy vehicle use tax.
8. Enroll in drug and alcohol testing and the Clearinghouse. Drivers with a commercial driver’s license (CDL) are subject to testing. An owner-operator who is the company’s only driver registers in the FMCSA Drug and Alcohol Clearinghouse as both an employer and a driver, and must join a testing consortium that acts as the designated third-party administrator.
9. Set up an ELD. Most carriers that must keep records of duty status need a registered electronic logging device (ELD) in the truck.

Confirm your exact obligations with FMCSA, your state and your insurance agent, because intrastate carriers, hazmat haulers and passenger carriers follow different rules.

What insurance does a new trucking company need?

Federal law sets a minimum of $750,000 in public liability coverage for for-hire carriers hauling non-hazardous property in vehicles of 10,001 pounds or more. The rule is 49 CFR 387.9: https://www.ecfr.gov/current/title-49/subtitle-B/chapter-III/subchapter-B/part-387

That figure is a floor, and it is often not enough in practice. Higher minimums apply to hazardous materials, and the limits have not changed since they were set in 1980. Many brokers and shippers require $1,000,000 in auto liability and a separate cargo policy before they will book a carrier, so a policy that only meets the federal minimum can lock you out of freight.

Plan on these policies:

• Primary auto liability (the policy filed with FMCSA).
• Motor truck cargo coverage, commonly required by brokers.
• Physical damage coverage on the tractor and trailer, usually required by a lender or lessor.
• Occupational accident or workers’ compensation, depending on your state and whether you employ drivers.

Insurance is usually the largest upfront cash item after the truck itself, and new authorities are often quoted the highest rates. Get quotes from agents who specialize in trucking before you pick a truck, because the insurance quote can change which equipment makes sense.

How much does it cost to start a trucking company?

Startup cost depends mostly on the truck and the insurance down payment, so ranges vary widely. Filing fees are small and fixed, while equipment and insurance are quoted individually. The table separates items with published fees from items you must price yourself.

Cost item	What to expect	Source of the number
LLC filing and EIN	State filing fee varies by state; EIN is free	Your Secretary of State, IRS
MC operating authority	$300 per authority type, non-refundable	FMCSA
BOC-3 filing	A small one-time fee from the process agent, typically around $30 or less	Process agent pricing
UCR	$46 for 0 to 2 vehicles in 2026	Federal Register notice of UCR fees
IRP plates, IFTA, Form 2290	Depend on base state, weight and miles	Your state DMV or tax agency, IRS
Insurance down payment	A deposit on the annual premium, quoted per driver and truck	Insurance agent quotes
Truck and trailer	Buy, finance or lease: the largest single cost	Dealer and lender quotes
ELD, drug testing consortium, Clearinghouse	Monthly or annual subscriptions	Vendor pricing
Operating cash	Fuel, driver pay, tolls and maintenance until you collect	Your own cost per mile model

Operating cash is the line new carriers underestimate. A truck can run for weeks before the first invoice is paid, and fuel, tolls and repairs come due immediately. Build the numbers with the cost per mile worksheet in the trucking business plan guide before you commit to a truck payment.

Buying versus leasing is a cash flow decision more than a price decision. A used truck lowers the monthly payment but raises repair risk, a lease-purchase or lease-on operation keeps the upfront cost low but may limit your control, and a new truck gives warranty coverage at a higher payment. Compare total monthly obligations, not the sticker price.

Why can’t new carriers get loads with new authority?

Many brokers and shippers require a minimum authority age before they will book a carrier, because new authorities have no safety or payment record. Requirements vary by company, and the cutoffs that carriers commonly report run from a few months to a year or more. There is no federal rule setting that age, so each customer decides.

Two other filters hit new carriers at the same time. Brokers check insurance limits, safety data in the FMCSA system, and increasingly use fraud screening tools, so a new carrier with a thin profile can be rejected on paper. Some customers also want a minimum number of trucks or a specific cargo limit.

Ways new carriers get through the first months:

• Haul for larger carriers or on a lease-on basis to build driving history under an established authority.
• Use load boards such as DAT and Truckstop, which list freight that some brokers book regardless of authority age.
• Work with a dispatch service that books loads for a percentage, and keep an eye on its contract terms.
• Ask for broker setups with small and new carriers by contacting brokers directly and asking whether they have a program.
• Keep your safety record clean. Roadside inspections, CSA scores and on-time pickup history are what you can show customers when the authority is still young.

How do you get your first customers as a trucking company?

New carriers usually get their first freight from load boards and broker relationships, and then add direct shipper freight once they have a record. Direct freight pays better but takes longer to win.

Load boards and brokers. Create profiles on DAT and Truckstop, complete each broker’s carrier packet (W-9, certificate of insurance, authority letter), and respond quickly. Complete packets are what turn a one-off load into a repeat customer.

Direct shippers by lane. Pick two or three lanes you can run repeatedly, such as a regional route from a port, a food distribution center or a manufacturing plant. Identify shippers on those lanes, find the transportation or logistics manager, and offer a trial load. A short, specific message about one lane works better than a general introduction.

Dedicated lanes and subcontracting. Larger carriers and 3PLs sometimes subcontract overflow freight to small fleets. These relationships need a clean record, but they can bring steady volume.

A simple website and Google Business Profile. Buyers check a carrier’s website before they answer, and a one-page site with your MC and USDOT numbers, equipment, lanes, insurance and contact details removes doubt. A Google Business Profile helps local shippers and drivers find you. The basics are covered in our guide to trucking SEO, and the wider set of channels is in our trucking marketing guide.

A company name that fits your lanes. Choose a name that is available as a domain and in your state, and that does not box you into one region. Our list of trucking company name ideas helps with the shortlist.

How do cash flow and factoring work for a new trucking company?

A new carrier gets paid by brokers and shippers 30 to 60 days after delivery in many cases, while fuel and driver pay are due now. Factoring bridges the gap by buying your invoices for an advance, and the factoring company charges a fee.

Compare these items before you sign with a factor:

• Fee structure: a percentage of each invoice, and whether the rate changes with payment time.
• Recourse or non-recourse: whether you owe the money back if the customer does not pay.
• Contract length and minimums: some contracts include minimum monthly volume or early termination fees.
• Fuel advances and fuel card discounts: often bundled by factors that serve small fleets.
• Credit checks on brokers: useful, because fraud and non-payment hit new carriers hard.

Quick pay programs from brokers are an alternative: they pay faster for a discount. In both cases, price the fee into your cost per mile so the rate you accept covers it.

What mistakes do new trucking companies make?

The costliest errors are financial, not regulatory. Most carriers that struggle in the first year have underpriced freight, run out of cash or taken contracts they could not run profitably.

• Not knowing the cost per mile. Accepting rates that look high without subtracting fuel, insurance, maintenance, truck payment, driver pay and factoring fees.
• Buying the truck before getting insurance quotes. An unexpected premium can make the payment unaffordable.
• Letting filings lapse. Insurance, BOC-3, UCR, IFTA and the biennial MCS-150 update all have deadlines, and a missed one can suspend authority.
• Relying on one broker. A single customer that cuts rates or stops booking can end the business.
• Skipping maintenance and driver qualification files. Roadside inspection violations raise insurance costs and hurt CSA scores. If you plan to hire, our guide to recruiting CDL drivers covers where to find them.
• Taking only low-rate spot freight. Spot loads are a start, but they do not build a customer base on their own.

For a fuller view of who buys freight and how carriers reach them, see our overview of marketing for trucking companies.

Frequently asked questions

How much does it cost to start a trucking company?

The fixed fees are small: $300 for MC authority, a $46 UCR payment for one or two trucks in 2026, a minor BOC-3 fee and state filings. The big costs are the truck, the insurance down payment and operating cash. Get quotes for each before you commit, because they vary by state, driver record and equipment.

How do I start a small trucking company?

Start with one truck, form an LLC, get a USDOT number and MC authority, file a BOC-3, buy insurance and register for UCR, IRP and IFTA. Then join a drug testing consortium and set up an ELD. Get loads through load boards and broker setups while you build a record for direct shipper freight.

Do I need an MC number to start a trucking company?

You need an MC number if you haul regulated freight for hire across state lines. A carrier that only hauls its own goods (private carrier) or operates only within one state may not need one, though state rules apply. Check with FMCSA and your state before you apply.

How long does it take to get operating authority?

The timeline depends on how fast your insurance and BOC-3 are filed, since FMCSA does not grant authority until both are on file. FMCSA’s published rule gives the insurer up to 90 days from the Federal Register notice to file, and prepared applicants usually finish sooner. Have your insurance quote and process agent ready before you submit the application.

Can I start a trucking company with no money?

Registration is cheap, but insurance, a truck and operating cash are not. Some people start by leasing on to an established carrier, which avoids the authority and insurance costs while they save. Starting with little cash makes the first months of cash flow very tight.

Do I need a website to start a trucking company?

It is not required, but brokers and shippers check one before they trust a new carrier. A short site with your numbers, equipment, lanes and insurance builds credibility and shortens the time to a first booking.

For a carrier website built to convert shippers and brokers, see our website design services.