How to Start a Tractor Trailer Business

Start a tractor trailer business by following these 10 steps:

1. Plan your Tractor Trailer Business
2. Form your Tractor Trailer Business into a Legal Entity
3. Register your Tractor Trailer Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Tractor Trailer Business
6. Get the Necessary Permits & Licenses for your Tractor Trailer Business
7. Get Tractor Trailer Business Insurance
8. Define your Tractor Trailer Business Brand
9. Create your Tractor Trailer Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your tractor trailer business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Business Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a tractor trailer business?

Opening and operating your own tractor-trailer business does have some substantial costs to hurdle in the beginning. Buying or leasing tractor-trailers, even used, will require substantial finances. Additionally, you’ll need to account for vehicle maintenance and tires, business insurance and licensing, and other fees required by state and federal agencies. Overall, an initial loan between $20,000 and 50,000 should get your business up and running.

What are the ongoing expenses for a tractor trailer business?

Most of the ongoing expenses are related to the maintenance and upkeep of the trailers and trucks, which can be extensive at times. There will also be annual fees for insurance and business licensing, as well as training and certification for drivers. Additionally, it’s advisable to expand the fleet, when possible, with newer or upgraded equipment.

Who is the target market?

Depending on your business’s size and scope, you will be looking for businesses that regularly ship freight around the country.

How does a tractor trailer business make money?

The fees for hauling freight generates revenue for the business.

How much can you charge customers?

Depending on the deliveries and the distance traveled, most freight will run between $1-$4 per mile.

How much profit can a tractor trailer business make?

Trucking company owner-operator gross revenues can average around $220,000, although these figures include well-established businesses, which can skew the average. These figures may not be reflected in the first years of business, with $60,000-$75,000 being a more realistic average for a trucking owner-operator startup.

How can you make your business more profitable?

Look for clients who want to expand their own business and present them with contracts for long-term service. Stable revenue really helps new businesses.

Without undercutting your competition, look for ways you can reduce business costs and, in turn, pass those savings on to your customers.

To start, operate regionally to avoid too much wear and tear on your fleet and take long driving assignments only when you can haul both ways.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your tractor trailer business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a Tractor Trailer business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

To avoid liability and potential lawsuits, a Tractor Trailer businesses should have their clients sign waivers.

Recommended: Rocket Lawyer makes it easy to create a professional release of liability form for your studio when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

Often, truck drivers will decide to form their own trucking business after years of working for a company. Experience driving big rigs and the operating logistics of interstate shipping are necessary to gain a strong foothold from the start. Understanding the history and culture of tractor-trailer shipping is important for attracting drivers and customers, alike.

What happens during a typical day at a tractor trailer business?

Tractor-trailer businesses specialize in getting customer goods from here to there. Scheduling and routing deliveries and pick-ups is an ever-evolving animal, too, as schedules rarely stay strictly on schedule. A good logistics operator will have backup plans in place to keep things moving forward.

Truck and trailer maintenance and inspections are also critical to keep the fleet operating at full capacity. As a business grows, the hiring and training of new drivers will also become a critical element of day to day activities.

What are some skills and experiences that will help you build a successful tractor trailer business?

Experience driving big rigs and box trucks is usually a given for a person looking to open up their own business. Driving 18 wheelers takes knowledge and experience to do it properly. And much of this knowledge isn’t taught, but rather picked up from other drivers and long hours behind the wheel. Of course, a good business owner must also have business and finance knowledge, as well. Ideally, a combination of trucking experience and solid business acumen is the best fit.

What is the growth potential for a tractor trailer business?

Tractor-trailer/trucking companies are consistently busy moving goods all over the country, and, with recent developments, there seems to be an even bigger shipping market taking hold. Equally, fuel prices have dropped, as of recent. Many businesses also continue to explore their global commerce possibilities, with shipping availability always a cornerstone of success. The time to think about developing a reliable and profitable tractor-trailer business may be at hand.