How Much it Costs to Start a Trucking Business
The trucking business in United States is one of the most lucrative businesses at the moment. If you start the business in a serious and professional way you can make a lot of money in this industry.
How much will it cost (in total) to start a trucking business in the USA?
The answer can vary greatly depending on your needs and interest but in this blog we will propose a basic and minimal example so you have an idea exactly how much it will cost to start in this industry.
So, what are the costs of starting a truck business?
1. The Purchase of the Truck and Van
The first purchase you are going to make is the equipment you are going to buy. Obviously, without a truck you cannot see trucking business. For this reason it is very important to buy a truck in excellent condition.
When we say “the equipment” we refer not only to the truck but also to the trailer or van that will need to join with your truck to be able to load and transport goods.
A good truck and ready to run can leave you around $ 40,000 – $ 50,000 dollars. This was a truck in very good condition and that will last a long time while you do your regular maintenance.
Now, for the trailer or van. A trailer in good condition to load and transport dry cargo / general cargo comes out at around $ 15,000. Again, this is a trailer in very good condition, ready to run and that can last you many years while you keep it well.
The truck business is a little different from the rest of the traditional businesses in the sense that it is not really necessary to have a professional office or place to operate your business. That is, the majority of your investment goes towards the purchase of your equipment, and for good reason.
The second thing that will make it necessary are the permits and authority so that your truck can legally transport cargoes and merchandise within the United States.
Usually what is needed (depending on the type of operation you want to establish) is the number of MC and DOT, the plates for the truck, the IFTA that is for the taxes of your truck at the end of the year and the registration of your Corporation with the state.
To register all the permits you need, it will cost you around $ 3,500 in total. This charge is only because you are starting your business for the first time. That is, to continue operating the next year after you have the permits, the costs were minimal.
The last thing you will need before your truck can officially start transporting goods within the United States is the insurance for the truck and trailer.
Usually what is required by the DOT (Department of Transportation) is a “Cargo and Liability” insurance. The charge must be for a coverage of $ 100,000 and Liability must be for a coverage of at least $ 750,000 (depending on the type of cargo you want to transport).
To start an insurance policy according to the established requirements it will come out at around $ 2,000. After starting the insurance policy you will be paying between $ 700 – $ 1,200 per month.
The other costs that you should consider after starting your trucking business are the costs that many people do not have planned for.
Examples of these costs:
- truck parking ($ 120 / month),
- fill oil tanks ($ 500 – $ 800),
- truck posters ($ 50 – $ 100),
- truck safety inspection ($ 50 – $ 100),
- etc. etc.
So, exactly how much will it cost to start your truck business?
As I said at the beginning of this post, the exact cost of setting up your truck company can vary depending on your needs and interests. For example, there are people who prefer to start their business with one truck and there are other people who prefer to start with 5 trucks, obviously the cost will change substantially between the situations of those two examples.
The trucking business is very special in the sense that it is one of the few businesses in which you start producing money immediately.