Have you ever realized that trucking companies are what keep our world the way it is? Like, if that business didn’t work like clockwork, then you most certainly wouldn’t be able to buy some of your favorite products in the grocery.
But, when you start looking into the other side, running a trucking company is hard, expensive, and it requires quite a bit of wit in order to make things work.
And this got us thinking. What would one need to know to start their own trucking company? The answer is quite a bit. From choosing the right business fleet insurance to understanding how the whole business operates, you will need to be pretty business savvy to succeed in this industry.
While we can’t teach you everything about the business, as things are pretty unique for each and every one of us, we can at the very least help you understand some of the more important aspects. Ready? Let’s get this started!
You’ll need to establish your legal entity before you begin operations.
Duh! Ok, while this is something common that all business people should do before they start operating legally in their country, for trucking companies, it’s a bit different.
Not that you can operate without having a registered company. That’s a big no-no. You will have to appoint a registered agent. They will be the point of contact between the state and your company.
You appointed agent must be in the registered office to accept legal notices, tax documents and such.
If you fail to accept any type of communication from the state, you’re risking to damage your relationship with the state.
Depending on where you live, you’ll have to obtain the necessary legal documents.
But you will have to obtain a USDOT number that will identify your company during inspections and audits and investigations. You’ll also need to obtain an MC number, IRP credentials and IFTA decal.
And last but not least, you’ll need a commercial driver’s license. This is fairly self-explanatory for what is needed.
Make sure you have all the necessary documents before you start operating in order to make sure everything is as it should.
The right insurance is very important in this line of business, so make sure to do your research and choose the right one.
One of the most important things that you will need when running a trucking company is the right type of insurance.
When you’re researching, make sure that you have cargo insurance, primary liability insurance, physical damage insurance, and passenger accident insurance.
Depending on the type of load that you’ll work with, you should talk to a professional insurance company to help you pick the right insurance for your business.
In order to run a successful trucking business, you’ll have to understand how income and expenses in this business work.
The trucking industry works a bit differently when it comes to cash flow and invoicing. With that said, you will have to take into account that payment for loads delivered often weeks or months after the job is done.