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How Much Does It Cost To Start A Trucking Business

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By Author: Eld Mandate
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The Trucking industry accounts for 6% of all full-time jobs in the country. In 2017, the American trucking industry posted revenue that was higher than 150 countries.

This article discusses the steps and cost of starting a trucking business in the USA.

Registration
Cost: up to $1,590 onetime. The first step in starting a trucking business is to incorporate ...
... a company. To legally transport loads within the country, a company has to register all the necessary permits. The registration is first done on a state-level. The Department of State can let the applicant know about the availability of the proposed name. If the proposed company name is available, the company can be officially registered with the Department of State. Once the registration of the company name is complete, it appears on the official website of the Department of State. 

TAX ID number

Cost: $79 onetime. TAX ID number is prerequisite to open a business bank account. It is also required to pay taxes at the end of every year. It is basically the company’s registration on a Federal level. The TAX ID number can be registered even if the applicant is not a USA resident. The application can be found online. MC number and DOT number

Cost: $300 onetime. After registering a company and getting the TAX ID number, the final step is to register for a Motor Carrier (MC) number and Department of Transport (DOT) number. These numbers are required to legally transport loads in the country and can be seen on the sides of trucks. The truck signs are placed on each side of the truck and include the name of the company, MC number, DOT number, home city of the company, etc. There are other trucking related registrations that a new business may need. To see a full breakdown and list read our guide on how to start a trucking business. 

Purchasing Trucks and/or Trailers
Cost: very variable. After registrations and getting the required permits, the next step towards starting a trucking company is to buy trucks and if needed trailers. Trucks can be bought new, or used. The cost of a new truck varies across truck brands and features. The price of a new truck starts at an average of $113,000. A new sleeper truck costs around $125,000 and a trailer costs around $50,000. Specialty trucks are priced even higher.

Used trucks are priced much lower than brand new ones. Especially when the business requires specialty trucks like long combination or loggers, new trucks can cost a small fortune. However, a truck purchased at a very cheap price with many years of operation may pose a lot of repair and maintenance costs. A repair done on the road costs 2 to 3 times more than repairs done in the home city.

It is recommended to buy a truck that is less than 5 years old and has been driven for less than 600,000 miles. The average price of a used class 8 truck was $43,808 as of this year. A thorough physical check as well as documentation pertaining to the vehicle’s history should be considered before making a purchase. When trying to decide between which truck a new owner operator should purchase be sure to check out our article which discusses the 6 best truck brands for a new trucking business.
Purchasing Trucks and/or Trailers
Cost: very variable. After registrations and getting the required permits, the next step towards starting a trucking company is to buy trucks and if needed trailers. Trucks can be bought new, or used. The cost of a new truck varies across truck brands and features. The price of a new truck starts at an average of $113,000. A new sleeper truck costs around $125,000 and a trailer costs around $50,000. Specialty trucks are priced even higher.

Used trucks are priced much lower than brand new ones. Especially when the business requires specialty trucks like long combination or loggers, new trucks can cost a small fortune. However, a truck purchased at a very cheap price with many years of operation may pose a lot of repair and maintenance costs. A repair done on the road costs 2 to 3 times more than repairs done in the home city.

It is recommended to buy a truck that is less than 5 years old and has been driven for less than 600,000 miles. The average price of a used class 8 truck was $43,808 as of this year. A thorough physical check as well as documentation pertaining to the vehicle’s history should be considered before making a purchase. When trying to decide between which truck a new owner operator should purchase be sure to check out our article which discusses the 6 best truck brands for a new trucking business.
Heavy Vehicle Use Tax
Cost: $100 - $550 per year. Trucks weighing more than 55,000 pounds are subject to this tax. Trucking companies are required to file an annual Heavy Highway Vehicle Use Tax Return and pay the applicable tax for their fleet.
Insurance
Cost: $9,000 - $12,000 per year. After the purchase of vehicle, the next step would be to insure it for the three aspects below:

Physical damage: Covers the full cost of the truck. This means if the truck costs $40,000, then it should be insured for the same cost.

Cargo: Cargo insurance should be done for a recommended amount of $10,000. This is insurance for the cargo that a truck is carrying. If more valuable cargo is being transported then a larger coverage may be useful

Liability: This insurance covers any damage that the truck or driver can cause to a third party.

An insurance that covers all the aspects above costs between $9,000-$12,000 per truck per year.

IRP plates registration and IFTA

Cost: $1,500 - $2,000 per year. IRP plates are specifically used for trucks that operate interstate. All 48 states of the continental U.S. are listed on it. IFTA usually comes along with IRP plates. It is a small sticker that is used to put on the back of the truck. The IFTA is renewed every year as long as the owner pays fuel taxes. The cost for IRP plates depend upon various factors, and should cost anywhere between $1500 and $2000 including an initial IFTA decal cost. 

ELD, Trailer Trackers, Dash cams

Cost: Around $950 per year. All three above are good technological requirements for each trucking business. Out of the 3 the only requirement is an ELD, and there are certain ELD Exemptions. An ELD is a device that captures driver’s driving status in compliance with regulations.
It helps in automatic tracking of a drivers hours of service and highlights any violations. A trailer tracker is used to track the location of the trailer and can be used to track the location of the trailer. Lastly, dash cams can be installed to keep a video record of the driving and possibly lower insurance costs.

ELDs on average cost $350 per year with IFTA, Trailer Trackers have an annual cost of $250, and Dash cams are another $350 per year. We at ELD Mandate work our best to reduce the price for all three above while having state of the art technology and all the important features. To learn more click here for best ELDs, Trailer Trackers, & Dash Cams. 

Visit us: https://www.eldmandate.biz/

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