How to start a non-CDL business delivery service

To start a non-CDL business delivery service, you need to secure a motor vehicle record, apply for a DOT number, and get the appropriate licenses and permits. For details on each of these steps and others you can take, reference this guide:

• Secure a motor vehicle record (MVR). This step is fairly simple in most states, but you should still do the proper planning in the event of delays.

  You should inquire with your local DMV for specific details on this step. This is a driving history that includes traffic citations, vehicular crimes, accidents, and DUI convictions.

• Apply for a DOT number. This is a requirement, even for non-CDL delivery businesses.

  A DOT number or Department of Transportation number is something you will need to operate your business legally in most states.

• Get a DOT physical and medical card for all of your drivers. You may also be required to get your drivers to undergo DOT physicals and get medical cards.

  These health examinations performed by the Department of Transportation are meant to evaluate truck drivers' physical, mental, and emotional abilities to make sure they are fit to be hauling loads.

  The Federal Motor Carrier Safety Administration (FMCSA) requires drivers to complete and pass these tests in order to maintain commercial truck driving licenses.

  In most states, there is a fee you must pay to get a motor vehicle record. In certain states, you can also accomplish this online and get a digital version. In other states, drivers may need to pick up a physical copy or have it mailed to their home address, or to your business address.

• Obtain an Employer Identification Number. The next step is to get federal and state tax IDs.

  Your employer identification number (EIN) is critical to starting and growing your business. It helps with matters like opening a business bank account and paying taxes.

  Essentially it is like a social security number, but for your business. In certain states, you may also have to get a tax ID as well.

• Get the appropriate permits and licenses. You now should apply for the proper licenses and permits for your delivery business.

  This guarantees that the business stays legally compliant. The licenses and permits you may need for your business varies, depending on what industry your business is in, what state, the specific location of your business, and other factors as well.

• Purchase or rent your vehicles and equipment. Depending on how much start-up capital you have, you may be able to purchase all of the necessary vehicles and equipment.

  Depending on what kind of delivery service you choose for your business to specialize in, this will dictate what types of trucks or vans you should purchase or rent, and how many you need to add to your fleet to get your business going and be profitable.

  You might also consider renting office space. If you can run your business from home somehow, that's a great way to save on costs, however, you need parking areas for your fleet when they are not engaged in service.

• Average costs of starting a delivery business. Now we'll take a look at how much capital you will need in general to start your business.

  On average, starting a delivery business in the United States costs between $100,000 to $200,000.

  This can vary depending on the size and scope of your business. You also might only need $10,000 to $20,000 of your own capital to start it, because the rest might be able to be obtained through a small business loan.

  Here's a breakdown of the average cost of the requirements of starting a delivery business:

  • Registering your trucking business is a one-time cost that can be up to around $1600.The registration is first done on a state level.

  • Getting the Tax ID number for your business is one-time cost of $79.

  • Obtaining your MC and DOT number is a one-time cost of $300.

  • Used-boxed trucks cost between $12,100 and $41,230 per vehicle

  • IRP plates registration and IFTA. This can cost you between $1500 to $2000 per year. IRP license plates are meant for delivery traveling specifically on the interstate.

  • Insurance services for your vehicles and business itself can cost you anywhere from $9000 to $12,000 per year.

  • Delivery drivers make an average annual salary of $38,785 in the U.S.