How to start a trucking company without driving

To start a trucking company without driving, you need to take stock of your resources, determine a specialized form of trucking, and obtain a Transportation Workers Identification Credential (TWIC). Here are details on each of these steps and others you can take to start a trucking business without driving:

• Take stock of your resources. To start a trucking business you must first determine what equipment you already possess and what equipment you might need to purchase or rent.

This also applies to your finances, do you have enough capital to start the business, or do you need to get a small business loan? You can also ask for loans from friends and family, or seek out investors for your business.

You also need to make sure you have the funding to hire drivers, since you don't plan on driving yourself. All of your drivers will need to have CDL licenses (we will touch on this later), but you as the business owner, and non-driver, will not need a CDL license.

• Determine a specialized form of trucking for your business. You should choose your specialty in relation to the resources you have on hand or can gain before starting your business.

There are different kinds of trucks and trailers to handle different types of loads. Most trucking businesses have medium-sized trucks, typically larger than pickup trucks.

Trucks come in different classes:

• Class 3 medium-duty trucks have a weight limit of 10,001-14,000 pounds. Mainly contractors and last-mile delivery drivers use this class, but you can also use them for lighter trucking loads.

• Class 4 medium-duty trucks have a weight limit of 14,001-16,000 pounds. These are heavier trucks, but they're still classified as non-commercial.

• Class 5 medium-duty trucks have a weight limit of 16,001-19,500 pounds. Many of the lightest commercial trucks are categorized as Class 5.

Another step in this area is coming up with a proper name for your company. You'll need a unique name you can register and open a business account under.

• Obtain CDL licenses for your drivers and an EIN for your business. As was stated before, you as the owner do not need a CDL license, but all of your drivers do.

CDL licenses fall into three different categories:

• Class A

• Class B

• Class C

Trailer gross weight rating restrictions separate Class A and Class B. Class A license allows you to drive tractor-trailers, while a Class B license clears you to drive straight trucks, box trucks, and large passenger buses.

A Class C license allows you to drive smaller vehicles, like passenger vans and certain delivery trucks. Most local truck driving positions require a CDL license.

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.

• Obtain a Transportation Workers Identification Credential (TWIC). These credentials are critical if you want to have variety in the types of loads you can legally haul with your business.

A TWIC also lets you access secure areas, such as ports and other maritime hauling-related facilities.

• Get all the proper insurance. A trucking business means you need a variety of insurance policies.

Business insurance is necessary to protect your LLC from liabilities, and other possible claims. You also obviously need auto insurance for all of your vehicles.

It is highly recommended that you seek the counsel of an experienced insurance agent to determine all the necessary insurance policies you should get for your business.

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

On average starting a trucking business in the United States costs between $100,000 to $200,000. This can vary depending on the size and scope of your business

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

• Registering your trucking business is a one-time cost that can be up to around $1600. To legally transport loads within the country, a company has to register all the necessary permits. The registration is first done on a state level.

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

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

• Purchasing trucks. The price of a new truck starts at an average of $113,000. A new sleeper truck costs around $125,000 and a trailer costs around $50,000.

• The average price of a used class 8 truck in the United States is $43,808.

• Another annual cost to keep in mind is IRP plate registration and IFTA. This can cost you between $1500 to $2000 per year. IRP license plates are meant for trucks traveling specifically on the interstate. IFTA typically comes with the IRP sticker and is renewed every year as you pay fuel taxes.

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