If you’re thinking of starting your own trucking business, you’re likely wondering just how much it will cost. There are a number of startup costs to consider, and the amount you’ll need to spend will vary depending on the type of trucking company you want to start. Here’s a breakdown of the most common expenses involved in starting a trucking business:
Truck
The truck’s cost is the most important expense for any trucking business. You’ll need to factor in the purchase price and ongoing maintenance and fuel costs. You can expect to pay $100,000 or more for a new truck, and $10,000 or more per year in maintenance and fuel costs.
Trailer
If you’re starting a flatbed trucking business, you’ll also need to purchase a trailer. The price varies depending on size and model but expect to pay $7,000 for a used trailer and $35,000 for a new model.
Insurance
Trucking businesses are required to have commercial truck insurance, which can cost $5,000 or more per year. Here are a few examples of companies that provide insurance:
- Progressive
- GEICO
- Nationwide
- USAA
- Travelers
Permits and licenses
There are a number of permits and licenses that you’ll need to obtain in order to operate your trucking business. These include a U.S. Department of Transportation (USDOT) number, which allows you to transport cargo in interstate commerce, and Operating Authority or an MC number, from the Federal Motor Carrier Safety Administration (FMCSA). Companies involved in intrastate transportation of hazardous materials must also register for a USDOT number.. Permits and licenses can cost a few hundred dollars each. You can expect to pay around $1,000 in total for all the permits and licenses you’ll need.
Department of Transportation (DOT) Physicals
All drivers are required to have a DOT physical before they can operate a commercial vehicle. The exam checks for a variety of conditions that could impair a driver’s ability to operate a truck safely. DOT physicals cost around $100 each.
Training
If you’re starting your own trucking business, you’ll need to get your CDL (commercial driver’s license). You can expect to pay $3,000 to $10,000 for CDL training, depending on where you live and the school you choose. Here are a few examples of companies that provide training:
- Trucking Academy
- American Trucking Association
- National Association of Publicly Funded Truck Driving Schools
- Department of Transportation
- National Truck Driving School
Ongoing Costs
There are a number of ongoing costs that you’ll need to consider when starting a trucking business. These include fuel, maintenance, and insurance costs. You can expect to spend around $10,000 per year on these ongoing costs. Here is some examples:
- Fuel: $3,000+ per year
- Maintenance: $4,000 per year
- Insurance:$5,000 per year
Business Formation
If you want to operate your trucking business as a corporation or limited liability company (LLC), you’ll need to file the necessary paperwork with your state and pay the filing fee, which is typically $100 or more.
Conclusion
As you can see, there are a number of startup costs to consider when starting a trucking business. The exact amount you’ll need to spend will vary depending on the type of trucking business you want to start and the number of vehicles you’ll be operating. However, you can expect to spend at least $100,000 for the purchase of a truck and trailer and the necessary permits, licenses, insurance, and training.