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Basic Guide To Starting A Trucking Company

Starting a trucking company is a big decision. Becoming an owner operator is, without a doubt, a huge responsibility, and taking the first steps can feel overwhelming.

Take a deep breath. Arguably, the hardest part (deciding to start a trucking company) is over. Here’s a breakdown of what to do next:

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Legally establish your company

The first step to starting your own trucking company is forming an LLC. Operating as an LLC will protect your personal property as a business owner and offer several tax advantages.

You’ll also need to obtain an employer identification number (EIN) for your LLC. Getting an EIN is a critical step. This number is unique to your business and required for many aspects of operation, including a business bank account.

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Buy or Lease a Truck

Consider your needs before buying or leasing a truck. You may not have the immediate funds to buy a truck with a large down payment or monthly payment. Leasing a truck is useful for keeping monthly costs down. If you have the capital to make a down payment, you may find that purchasing is the better solution. Also, look into buying a used truck.

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Get Insurance

You’ll need to have insurance before you can be licensed by the U.S. Department of Transportation. You’ll want to shop around before choosing an insurance provider. Again, be sure to consider your company’s needs and usage before settling on an option.

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Paperwork, paperwork and more paperwork

The most time-consuming part of starting your own trucking company is the paperwork, but thankfully, it’s not difficult.

If you aren’t already driving, you’ll need a CDL (commercial driver’s license) and some driving experience. Most owner operators start out as company drivers, so this step in the process may be complete for you.

You’ll also need the following business licenses and permits:

  • USDOT Number: used to identify your company during inspections and audits.
  • MC Number: dictates the type of operation a company may run and the cargo it may carry.
  • IRP credentials and IFTA decal: required for companies offering services in or across multiple states.

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Track expenses, stay compliant and avoid cash flow issues

Being an owner operator requires constant attentiveness. Stay updated on filing requirements and renewals. Missing deadlines or expirations can cause you to acquire significant penalties and you could even have your LLC authorization revoked. Another aspect that remains important after initially starting your trucking company is tracking expenses. Trucking is reliant on cash flow. Money evaporates quickly through fuel purchases, truck payments and more.

Factoring solves any potential financing issues caused by the discrepancy between the time it takes to receive money and how quickly it gets used. Without factoring, shippers and brokers might wait to pay invoices for up to 90 days. That’s a big delay.

With factoring, you’ll get paid for your unpaid invoices quickly so you can get back on the road and keep going.

Starting a trucking company with one truck is a huge responsibility, but we’re right here with you to help you get it right and be successful.

Say hello to fast cash.

eCapital understands the cash flow demands you face and gets you the immediate funds you need for your transportation business. No matter if you have 1 truck or 100, we can get you quick cash you need to pay for fuel and operating expenses so you can get back on the road faster.

It’s simple, fast, and free to get started.

Why not get a free, no-obligation quote?

Contact eCapital today to see how we can help!

Call 760.456.3786 or fill out the form.

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