Frequently Asked Questions

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Starting a trucking company involves several steps that need to be completed in a specific order. First you need to form a legal business entity and obtain your Employer Identification Number from the IRS. From there you file for your USDOT Number and MC Operating Authority through the FMCSA, which is the federal agency that regulates commercial trucking. While your authority application is being processed you work on obtaining commercial trucking insurance, enrolling in a drug and alcohol testing program, and setting up your state tax accounts like IFTA and IRP. Once your authority is active you need a truck, an Electronic Logging Device, and a way to find and book freight. The entire process has many moving parts and missing even one step can delay your ability to legally operate. At Get Into Trucking we walk you through every single step at no charge. You only pay the government and filing fees that every new carrier must pay regardless of who helps them. 

The cost of starting a trucking company varies depending on your state and your specific situation, but there are certain government fees that every new carrier must pay no matter what. These include your state entity filing fee, the FMCSA filing fee for your operating authority, your BOC3 filing, your UCR registration fee, your IRP apportioned plate registration, your IFTA account setup, and your Form 2290 Heavy Vehicle Use Tax. Beyond government fees the largest startup cost for most new carriers is commercial trucking insurance, which can vary significantly based on your driving history, the type of freight you plan to haul, and the equipment you are operating. Our guidance through every step of this process is completely free. You only pay what is required by the government and no more. 

An MC Number is your Motor Carrier Operating Authority issued by the Federal Motor Carrier Safety Administration. It is the federal authorization that gives you the legal right to haul freight for hire across state lines. If you are planning to operate as a for hire carrier, meaning you are getting paid to transport someone else's goods, you are required to have an MC Number before you can legally begin hauling. It is obtained by filing the MCSA application with the FMCSA along with the required government filing fee. After filing there is a mandatory protest period required by federal law before your authority becomes active. We help you complete and submit this application correctly so that the right authority type is selected for the loads you plan to haul. 

If you plan to personally operate a commercial motor vehicle over a certain weight threshold you are required by federal law to hold a valid Commercial Driver License, commonly known as a CDL. The CDL has different classes depending on the type and size of vehicle you plan to drive, and certain types of freight or equipment require additional endorsements on top of the base license. If you do not already have your CDL we can guide you through what is required to obtain one in your state, including the written knowledge test, the skills and road test, and any endorsements that may apply to your situation. If you are planning to own the business but hire other drivers to operate the trucks, those drivers must hold the appropriate CDL for the vehicles they operate. 

Factoring is a financial service that allows trucking companies to get paid for their loads quickly rather than waiting the 30 to 60 days that freight brokers typically take to pay invoices. The way it works is that after you complete a load and submit your invoice, a factoring company purchases that invoice from you and pays you a large portion of the amount quickly. The factoring company then collects the full payment from the broker when it comes due. In exchange the factoring company charges a small percentage fee based on the invoice amount. For new owner operators who are just getting started, factoring can be an important tool for maintaining steady cash flow and keeping the business moving without having to wait weeks to get paid for work already completed. We explain how factoring works and help you understand what to look for when evaluating a factoring agreement. 

IFTA stands for the International Fuel Tax Agreement. It is a program that simplifies fuel tax reporting for commercial carriers who operate in more than one state or Canadian province. Before IFTA existed carriers had to file fuel tax returns separately with every single state they drove through, which was an enormous administrative burden. Under IFTA you file one quarterly return with your base state and they handle distributing the taxes to the other states based on the miles you drove there. If you operate a qualified commercial motor vehicle and you drive in more than one state you are required to have an IFTA account. You are also required to keep accurate records of every fuel purchase and the miles driven in each state. We help you set up your IFTA account and explain exactly how to track what you need so your quarterly filings are accurate and on time. 

Commercial trucking insurance for a new carrier works similarly to other types of business insurance but with requirements specific to the trucking industry. The FMCSA requires all for hire carriers to maintain a minimum level of primary liability coverage and your insurance provider must file proof of that coverage directly with the FMCSA before your authority can be activated. The amount of coverage required depends on what type of freight you haul. Beyond the federal minimum most carriers also carry cargo insurance to protect the freight they are hauling and physical damage coverage to protect their own equipment. Insurance for new authorities can be more challenging to obtain than for established carriers and premiums for new carriers tend to be higher until you build a safety and operating history. We guide you through understanding what coverage you need, what to look for when shopping for a policy, and how to find insurance providers that work with brand new authorities. 

The most common way owner operators find loads when starting out is through load boards. A load board is an online marketplace where freight brokers and shippers post available freight that carriers can search, bid on, and book. Load boards allow you to search by origin, destination, equipment type, and load size so you can find freight that matches your truck and your preferred lanes. Some load boards also show broker credit scores and payment history which helps you evaluate who you are working with before you commit to a load. Beyond load boards many experienced carriers eventually build direct relationships with shippers and brokers over time which can lead to more consistent freight and better rates. As part of our Launch Program we walk you through how load boards work, how to search and evaluate loads effectively, and what to look for when you are just getting started. 

The timeline for obtaining your trucking authority depends on a few factors including how quickly you complete each step and how long the FMCSA takes to process your application. After you submit your MCSA application there is a mandatory protest period required by federal law that must pass before your authority can be activated. During this time you will also need to complete your insurance filing, BOC3 designation, and any remaining compliance steps. The total time from starting the process to having an active authority can vary and is also influenced by your state's processing times for business entity formation and other filings. Because of this we do not quote a specific number of days as every situation is different. What we can tell you is that having a team guiding you through each step in the correct order from the very beginning is the best way to avoid delays. Mistakes or missing steps are the most common reason the process takes longer than it needs to and our job is to make sure that does not happen to you. 

Starting a trucking business requires several licenses and registrations at both the federal and state level. At the federal level you will need a USDOT Number, an MC Number and Operating Authority filed through the FMCSA, a BOC3 process agent designation, and an annual Unified Carrier Registration. At the state level you will need apportioned registration plates through the IRP program, an IFTA fuel tax account for quarterly fuel tax reporting, and a Form 2290 Heavy Vehicle Use Tax filing if your vehicle meets the weight threshold. Depending on the states you plan to operate in you may also need additional state specific permits such as the New York HUT, Kentucky KYU, or New Mexico weight distance tax. Our Launch Program covers every one of these requirements and we guide you through obtaining each one in the correct order.