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If you have a clean driving record, you may want to think about starting your own trucking business. The trucking industry is experiencing a shortage of drivers, so now is the perfect time to launch your own business as a commercial truck driver. As your own boss, you’ll get to set your own hours and daily commute. You’ll also manage all of the expenses related to owning and operating a truck, which means you won’t have an auto loan hanging over your head or lease payments every month. Even better, there are many tax incentives available for those who start their own business. If you have what it takes to be a successful independent business owner, here are some tips on starting a trucking business.
Estimate Operating Costs
The first item on your list should be the cost of a truck. Depending on your truck’s age, model, and condition, you can expect to pay between $30,000 and $100,000. You’ll also need to consider the cost of maintenance, fuel, tires, insurance, and vehicle registration fees. You’ll also want to factor in the cost of fuel and maintenance for your personal vehicle, tolls, and parking fees if you plan to run your business out of your personal truck.
Make a Marketing Plan
You can’t just jump into the trucking business and start hauling loads from one place to another. You have to have a marketing plan in place that focuses on bringing in new customers. You can start by visiting your local trucking companies and letting them know that you’re available for work. You can also visit truck stops and start networking with other truckers, get listed on online trucking forums to let others know about your services, or create a website for your business through a website builder like Wix or Squarespace.
Get the Right Licenses and Registrations
First, you’ll need to apply for a Federal Employer Identification number (EIN) from the IRS. You can apply online and receive your number in just a few days. You’ll also want to register as an independent contractor with the IRS, too, if you’re a sole proprietor. Beyond that, you’ll want to apply for a Commercial Driver’s License (CDL) if you plan to drive a truck for your business. You’ll also need to apply for a Commercial Vehicle Registration, a Federal Motor Carrier Safety Regulation (FMCSA) number, a verified address, and a $100,000 surety bond to ensure that you’re financially responsible in case your business causes damage to a third party.
Find the Right Vehicle(s) to Start Your Business
You’ll need to purchase a commercial vehicle. There are many benefits to using commercial vehicles for your business, including better rates on insurance. The good news is that there are many owner operator trucks for sale at affordable prices. Just make sure that you thoroughly inspect the vehicle to make sure that it’s in great condition. You also want to make sure that the vehicle’s equipment is in good working condition, too.
Get Insurance for Your Trucking Business
If you plan to use your vehicle for commercial purposes, you’ll need commercial insurance. Commercial insurance can be more expensive than personal car insurance, but it’s important to have it if you’re operating a commercial vehicle. You’ll need commercial insurance coverage to protect you in the event of an accident or if you cause damage to someone else. If you have commercial insurance, you won’t be financially responsible for the accident or damage. Make sure that your commercial insurance includes a $100,000 combined single limit for property damage and bodily injury coverage.