Starting Trucking Company

John R

New Member
Ok so I'm sure you all have seen this a million times, but I want to get all the ducks in a row, to get this started as easily and painless as possible. I want to know EVERYTHING that it takes to get it started up. I have a company name in mind, I'm planning on team driving with a buddy of mine. Whats the difference between LLC and INC. Whats the deal with the fuel tax, i hear everyone talking about it but i'm not sure what it all entails. I have no clue what paperwork needs to be done to get started, I have a couple trucks in mind that I'd like to start off with. So give me your opinion on trucks, paperwork, Brokers you name it i want to know about it. Thanks
 
Do lots of reading here and create as many threads as you need to ask questions.

Lots to learn
 
Limited Liability Company (LLC) was created as an equal for Incorporated (Inc.) and is a more streamlined tax method for smaller companies.

Same rules apply as Inc. but less stringent on the paperwork side if your company is smaller scaled.

Ask your accountant; which is better for your particular needs. You may choose either or.
 
@John R .. As far as the Corp goes @DubbleD is right ask your accountant to see which better fits your needs that's what I did, as far as the trucks go I would need to know where you plan on operating because if you are going to be going in and out of California then you have to comply with CARB ( California air resource board ) Regulation about the Filters , our company is in Southern California so we ended up getting 2010 International Prostars and our drivers LOVE it .. so far they have each completed a couple runs and they said its amazing, but if you plan on operating anywhere else besides California then you can look at some older models. as far as brokers go you can use them in the mean time but I would recommend trying to get your own customers and work directly with the shippers maybe just use the brokers for your backhaul loads, I know you probably want some broker names but honestly there were a few that were pretty good but the bigger they got the more they turned into a C.H Robinson ( pays very low ), you just have to search the load boards and see what fits you at the time and make sure you get the broker checked out credit wise before taking a load, I don't know how your financials are but maybe use a factoring company to help with cash flow until you can go off on your own, a factoring company I recommend is Orange Commercial Credit out of Olympia Washington, they are really good and don't play any games like some of the other factoring companies. as far as paper work goes you will need a MC number Dot number Federal Tax ID number which your accountant should be able to take care of for you when you get the INC or LLC .. you need Insurance coverage, depending on where you are going to run you might need a few more stuff, along with registration and all that fun stuff. I hope this helps! let me know if you have anymore questions
 
I have only been driving since February. But i started with a over the road company and the way they ran was i was in "training" but after the first day it just turned into a team truck. I have a couple buddies that are considering running team with me. I'm working for Fastenal as a relief driver doing everything from running routes to sleeper runs. I don't have an accountant, I plan on running where ever just going to try staying away from NYC i hear nothing but horror stories out there.
 
I have only been driving since February. But i started with a over the road company and the way they ran was i was in "training" but after the first day it just turned into a team truck. I have a couple buddies that are considering running team with me. I'm working for Fastenal as a relief driver doing everything from running routes to sleeper runs. I don't have an accountant, I plan on running where ever just going to try staying away from NYC i hear nothing but horror stories out there.
You better get more experience, especially OTR before you venture into making a trucking company.

If you don't, you will lose your ass.
 
You better get more experience, especially OTR before you venture into making a trucking company.

If you don't, you will lose your ***.
if I had a nickel for every horror story I read about people losing there asses weather its from a bad flease deal or not having enough exp in the industry. I could retire :stare1:. though ya gotta give the poster credit for researching and getting opinions and not driving off into the sunset with a big smile on his face thinking he's gonna become a millionaire:eek:
 
My point is, you can read all about it on the internet and access decades worth of experience by proxy, but you will never understand all the paperwork and BS attached to it until you do it.

It's dispatchers, managers and business owners who have never run OTR that schedule pickups in Portland, OR with deliveries in Jacksonville, FL 48 hours later and expect a solo truck to make it happen "or else." These are the same people who buy fuel in Oregon because Oregon doesn't charge a fuel tax at the pump, then wonder why they owe thousands of dollars to the other states they travel through. They have no idea how often trucks have things break or that they need periodic maintenance and don't replace tires until they're threadbare and, when something does go wrong, have no reserves to get necessary work done. They band-aid the problem until something major happens and the wheel group flies through somebody's windshield and kills them because they fired that experienced driver for complaining too much when a bearing problem was brought to their attention, then refusing to drive an unsafe truck.

If we're lucky, these outfits get shut down before somebody gets hurt, either by revocation of authority or the business just going belly-up.

I strongly suggest this O/P get back into an OTR truck for another year and run it like he owns it. There is a whole lot more to this business than filling, moving and emptying trailers.
 
Man...
There's a LOT to know, even if you'd been driving for years.
Even if you'd been an O/O for years.
Your best bet is to join OOIDA and query them even if you don't use the services.

I hope you've got a fat bankroll.
After you get the T/T('s), you'll need operating authority from FMCSA.
That's only $300 but you'll have to have public liability for about a month before you're actually allowed to operate.
I suspended my authority about 2 1/2 years ago.
At the time my P/L premiums were about $6K per unit, per year...
But that was with 10-20+ year drivers, all having really good MVR's and a track record which didn't include a bunch of claims. I know guys that have been griping about rate increases ever since but I dunno rates lately.
I knew guys when I was running that were paying half-again what I was paying.
Being a newb company AND a newb driver, you'll be lucky to get written.
I would guess $10K plus (annually).

Then you'll need cargo.
Not as bad as P/L but again, being a newb, you'll pay the highest premiums.

Then you'll endure a 'new entrant audit'.
That's a safety audit where FMCSA will send an agent to look over your files and tell you for how long you'll be going to prison. :eek:
:D
You'll need your authority, insurance, IFTA license, etc on hand.
You'll need a maint file on each unit (even if you haven't driven off the lot).
You'll need a file on every driver (including yourself) with I-9's, ten years work history, drug and alcohol test, etc.
The drug testing is a big one. They have NO sense of humor about that AT ALL.
The fine is up to $10K. Maybe more these days.
You'll need to enroll each driver in a consortium and have records of pre-employment drug screens on hand.

There are 2 or 3 states left that have ad valorem tax.
That means if your registration includes the state, you have to figure the percentage of miles driven in that state and pay them personal property tax on your equipment.
KS & AR are the ones I recall off hand.
My tax in AR was zero one year so I didn't file it...
The fine for failure to file was a hundred bucks.
They're still waiting.

KY & NM have weight-distance tax.
You get to file with them quarterly and pay them around a nickle per mile for running there (exclusive of IFTA).
Same deal with the filing. If you don't file you get fined, then revoked. Miles or no miles.


John???
Where are you going John?

OOIDA 816-229-5791
You can use this number for a referral and join for $25 the first year (instead of $45).
13620
 
Last edited:
LLC or INC is way down on the to do list.
Unless you have much net worth, or other assets you don't need either IMO but I'm not a tax guy.
If you don't have enough to draw the interest of the blood sucking leeches who sue people for a living you can sweat that later, after you start making bank.

I went the S-corp route and it was a blunder in my case.
 
Hey SkateBoard,
About what are your P/L premiums running per year for each unit if you don't mind my asking. :)

Or even if you do. :stare1:

;)
 
P/L
Public Liability.
I shoulda just said liability...



Unless I was asking Tim.
In which case it would be pubic liability. :p

freak show! :mad:


:D
 
My $1,000,000 liability and $200,000 cargo insurance runs me $6,200 per year. That also insures my truck and trailer.
 

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.

Users who are viewing this thread

Top