How do you start a trucking company?
Starting a trucking company takes about 90 days and $15K-$60K in setup, broken into four steps: register a business entity, get USDOT and MC operating authority from FMCSA, line up insurance (the biggest single cost), and either buy/lease a truck or sign on as owner-operator.
The legal foundation is an LLC or S-Corp registered in your home state — usually $300-$1,500 in filing fees and lawyer time. Next is FMCSA registration: a USDOT number is free via Unified Registration System, while MC operating authority costs $300 in FMCSA filing fees plus a 21-day public protest period before activation. Insurance is where new carriers underestimate the most: minimum is $750K commercial auto liability for general freight (higher for hazmat or oversized), $5K-$100K in cargo coverage depending on commodity, plus a $75K BMC-91 bond filed with FMCSA. First-year insurance for a new authority typically runs $12K-$30K depending on driver record and equipment type. The truck itself is the next decision: used Class 8 sleeper tractors run $30K-$80K depending on year/mileage; lease-purchase programs through major carriers cut entry cost but lock in lower rates. Owner-operators leasing onto an existing carrier skip most of this overhead but trade ~10-30% of revenue. Plan to be unprofitable the first 6-12 months while you build a customer book, especially if you're not factoring invoices.
- What does it cost to start a one-truck trucking company?Realistic all-in setup for a one-truck for-hire interstate carrier: $15K-$60K. Breakdown: $1K business entity + $500 FMCSA filings + $1.5K-$3K UCR/IFTA/IRP registrations + $12K-$30K first-year insurance premium + $30K-$50K used truck (or $0 with lease-purchase). On the high end, plan for $40K-$80K including a $10K-$15K working-capital buffer for the 30-60 day gap before your first invoices clear.
- How long does FMCSA take to issue MC authority?About 4-8 weeks total. The MC authority application processes in 1-2 weeks, then a mandatory 21-day public protest period runs (where existing carriers can object), then the BMC-91 insurance bond and BOC-3 process-agent filings have to be on file before activation. Carriers usually file insurance and BOC-3 during the protest period so authority goes active immediately on day 22.
- Should I get my own authority or lease onto a carrier?Depends on whether you want to be a business or a driver. Leasing onto an established carrier means the carrier handles authority, insurance, factoring, and load-finding in exchange for ~10-30% of the gross. You drive and collect a settlement. Your own authority means you keep 100% of revenue but you're also running the back office: insurance renewals, FMCSA compliance, IFTA quarterly filings, IRP cab cards, BOC-3 process agents. Most owner-ops start leased and split off after 1-2 years once they have a customer book and a cash cushion.