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Trucking companies follow strict regulations from the Federal Motor Carrier Safety Administration to stay compliant. From obtaining MC Authority, processing UCR Renewals, to IRP Plates Renewal.

The trucking industry is one of the most significant and ever-growing industries in the United States. These present business opportunities for many people in the country. Though highly competitive, it has great potential for entrepreneurs that understand the business.

There is so much benefit to running a trucking business. These include: choosing your niche, routes, rate per miles, the companies to work with, and many more. It also provides a perfect combination of freedom and financial success.

But despite all the benefits mentioned above, starting a trucking business is lucrative and capital intensive, with multiple costs associated depending on your business niche. Also, it can sometimes be overwhelming with hurdles and challenges. That is why many people avoid venturing into the business despite the potential benefits they can enjoy.

Do you want to start a trucking business but don’t know where to begin? Global Multi Services highlights a straightforward guide that will steer you in the right direction.

WHY DO YOU NEED TO VENTURE INTO THE TRUCKING BUSINESS?

With driver shortage, increasing freight demand, and rates, you have the potential to make a lot of money by venturing into a trucking business. Aside from the ease of access into the industry, you will also build a sustainable business. But you will need to do thorough research to understand how the industry works. You also need to look for customers and contracts because they do not magically appear.

Here are things to do before starting a trucking business.

HAVE A BUSINESS PLAN

Having a business plan is very crucial when starting a trucking business. Just as a new job requires a fresh perspective and goals, a new trucking business needs an organized plan. A business plan is your fundamental guide and roadmap that determines your success. It is a GPS that gets you from where you are now to where you want to be.

It also helps you articulate your value proposition and shows potential obstacles down the road. Your business plan should include your financial budget, the type of equipment you plan to buy or lease, market niche, and other crucial business decisions.

CHOOSE A NICHE

Targeting the right market niche is crucial when starting a trucking business. Having a niche help streamline your operational processes and resources, optimize your sales, avoid competition with many companies and establish your name in the industry,

PERMITS AND LICENSE

Trucking companies must have specific licenses and permits to operate legally in the trucking industry. The type of permit you need depends on your market niche, base state, the type of freight you haul, and many more.

HOW TO STAY IN COMPLIANCE IN THE TRUCKING BUSINESS

Staying in compliance in the trucking industry requires obtaining several permits. The permits allow you to operate legally as a trucking business and also allow your trucks to transport freights across state lines. Having all these permits prevents you from paying hefty fines and penalties.

Here are permit and renewal processes to stay compliant in the trucking industry.

ACQUIRE YOUR MC AUTHORITY

MC Authority is mandatory for trucking companies operating across the United States. The authority indicates the Federal Motor Carrier Safety Administration (FMCSA) has given the trucking company permission to transport goods on public roads. There are other trucking-related registrations that a new business must obtain. They include IRP Plates, UCR Permit, IFTA Permits, and many more.

OBTAIN IFTA LICENSE

The International Fuel Tax Agreement is mandatory for trucking companies operating across interstate and international borders. Qualified motor carriers must register in their base state and obtain IFTA License with two IFTA Decals. They are also required to file IFTA Fuel Tax Returns quarterly in their base state.

PROCESS UCR RENEWAL

Trucking companies must obtain UCR Permit and process their UCR Renewals annually to run their trucking business smoothly. The Unified Carrier Registration is a federally-mandated program for trucking companies operating interstate and internationally. Trucking companies must apply in their base state and renew their permit before the expiring date to avoid penalties.

FILE IRP PLATES RENEWAL

The International Registration Plan allows trucking companies to operate across multiple jurisdictions using a single license plate. But they must register in their base state to obtain IRP Plates. All registered motor carriers must keep records of the distance covered in each member jurisdiction to process IRP Plates Renewal.

 

 

 


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The corporation is rigid and subjected to many oversights. The process of a corporation filing is also unquestionably complex. Therefore, it is vital to ensure you are not missing any critical information. Rushing through corporation filing to launch your business faster can affect your future operational success.

Hence, it is necessary to have a deeper understanding and vast knowledge before structuring your business legally as a corporation.

A corporation exists beyond the founder, and shares are transferred easily from one owner to another. Incorporating your business separates it from your assets. But you may be wondering whether a corporation is necessary for your small business.

Incorporation helps to limit your liability for business obligations. It is also a good option if you want investors to invest in your business. Read on as global Multi Services explains things to know before incorporating your business.

The Right Business Structure

Before incorporating your business, you need to know if structuring your business is the best way to reach your business goal.

There are four major business structures, and you need to evaluate the pros and cons of each. A corporation is only attractive if you want to build a rigid managerial hierarchy and anticipate a rapid expansion of your business.

It is also beneficial for asset protection and the transfer of shares. However, corporations are subject to strict reporting and compliance regulations. The shareholders are responsible for making major business decisions.

The other business structures available are sole proprietorships and partnerships. Their management structure is flexible and taxed as personal income to their owners. Also, they do not have reporting or compliance requirements.

Finally, you can also structure your business as a limited liability company. LLC allows you to benefit from personal liability protection. That means member assets are protected if the business loses money, is issued, or is subject to government fines.

Where You Want To Incorporate Your Business

Your business location is one of the crucial decisions after choosing a corporation. An attorney will give you a thorough breakdown of the corporation filing in each state.

The attorney can also help you get permission to conduct business in multiple states through a foreign qualification process or a multi state registration process.

However, be careful when choosing your state of incorporation. The state’s laws will impact your corporate tax rate, reporting, compliance, baselines, and many more.

Choosing The Corporate Officers

Corporations are rigid and complex compared to sole proprietorships, partnerships, and limited liability companies. The shareholders appoint corporate officers to run the daily affairs of the business.

Therefore, you will need to list the names of the corporate officers with their functions in your articles of incorporation. You will also list the number of shares of stocks your corporation can issue. Your state of incorporation determines the minimum number of directors. You’ll also need to list


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Many industries rely on the trucking industry to transport goods and raw materials from one place to another in the United States. These have presented a business opportunity for many trucking companies. But they need to obtain MC Authority and other permits to operate interstate.

The trucking business is lucrative once it starts running because of its high demand. However, the cost of starting a trucking business is intensive. The capital is expensive, with multiple operational costs associated with your business model.

Starting a trucking business also requires many costs related to trucking specifically and the ones incurred through the Federal Motor Carrier Safety Administration. In this blog, Global Multi Services will break down the cost of starting a trucking business.

Trucking Related Cost

Trucking-specific costs are paramount and assertive when starting a trucking business. It gives you independence and step into more management roles when compared to only collecting income from driving. Trucking costs are one of the largest expenses categories unique to the trucking industry. And the first costs you should be concerned with when establishing your trucking business.

According to trucking reports, one mile costs approximately $1.38 for a semi-truck, which is incredibly high for someone just getting into the business. But it can be lower depending on the type of trucking niche you plan to venture in.

The Cost For Trucking Equipment

The trucking industry is incredibly capital intensive because safety is paramount, and you need quality equipment to operate safely. Having the trucks, proper coverage, and other equipment is necessary to carry out business. And the cost of your trucking equipment is dependent on your market niche. Two options are involved when purchasing trucking equipment:

  • Purchase trucks and hire truck drivers to drive them.
  • Hire drivers that must provide their trucks.

Although the first option is often lucrative, it requires a lot of money to purchase all the equipment.

Truck Maintenance Cost

In addition to purchasing trucks and other equipment, you will also need regular preventive maintenance. These indicate issues from the trucks and keep them in good working condition to protect drivers, freight, and other road users.

Truck parts that need proper maintenance are brakes, alternator, wheel, batteries, airlines, and others. Taking care of your trucks avoids future expenses. But they are costs you need to consider when running your trucking business.

The Cost For MC Authority

MC Authority is one of the legal requirements mandatory to operate your trucking business in the United States. Motor Carrier Authority is a license issued to trucking companies by the Federal Motor Carrier Safety Administration, allowing them to transport freight on public roads.

Trucking companies also need to file paperwork to stay compliant with the trucking industry. These include applications for other permits, licenses, and fees. It also prevents them from paying hefty fines and penalties.

The Bottom Line

As you can see, establishing and running a trucking business is not a cheap endeavor. It also requires many equipment, high operating and maintenance costs to keep it running successfully. Therefore, do thorough research and prepare well before venturing into the business.