Have you considered launching a trucking company in Texas? If you are, that will be a fantastic way to make money. Texas is on track to become the largest economy in the US, given its proximity to Mexico, a Central American country that serves as a major provider of US products. But registering a company is labor-intensive. You would need a variety of paperwork as well as additional permits.
If you are not familiar of these topics and you dream to start a trucking business, relax; this article will teach you all about them.
Choose the Right Business Name
The name of your trucking company is the first thing you should consider. After all, the name is one item that each customer pays attention to. You must pick a name that will stick in people’s minds and convey the right message. Your company will be recognized for the image you wish it to project.
Register Your Business
Another factor you should think about for your business is the legal structure. You may encounter sole proprietorships, DBAs, LLCs, Corporations, and partnerships as frequent company structure forms.
You should pick the business structure that best suits you because each has pros and cons. In this step, it’s crucial to seek the proper advice from professionals registering companies in the trucking industry.
Obtain an EIN
Ensuring you are registered for taxes as a trucking firm is crucial. By doing this, you can be confident that you’ll be able to complete your taxes accurately and stay out of trouble. You must obtain an EIN from the IRS to do that. The EIN is also necessary when you apply to open a business bank account. You don’t need to exhaust yourself trying to do it all by yourself. Seeking advice from professionals will shorten your path and guarantee error-free results.
Purchase Adequate Insurance Coverage
Any trucking business must have reliable insurance protection. This is due to the risky nature of the trucking industry and the numerous possible dangers on the road. It safeguards your company from monetary damages from mishaps, theft, or other unanticipated circumstances. It is also mandatory to allow your company transport loads, Brokers and companies may not partner with your company if it’s not insured.
Selecting an insurance agency that specializes in commercial trucks is the first step. Then, you should decide the coverage levels you require after consulting with your agent. There are several types of insurance, but some of them offer the best coverage, which are:
- Cargo Insurance.
- Auto Liability Insurance.
- Physical Damage Insurance.
- Occupational Accident Insurance.
- Non-trucking Liability Insurance.
Secure Necessary Permits and Licenses
Before you start any business, there are several things that you need to take care of. Getting the proper licenses, Texas cab card, and permits is essential to operate a business legally in Texas. In the trucking business, you will require the following permits:
- Operating Authority (MC &DOT number)
- BOC-3 Filing
- Apportioned License Plates
- Motor Carrier Fuel Tax License
Open a Business Bank Account
The next and most important step one has to consider is opening a bank account for their business. It will help keep all your business and finances separate from your personal finances and allow you to deposit the revenue and draw the need to make any purchases.
Opening an account is relatively easy once you’ve located the correct bank. You must supply some basic information about your company along with your EIN.
Establish A Way To Obtain Loads
Establishing a reliable method for obtaining loads is crucial for keeping your trucking business in motion. One effective approach is to hire a Dispatcher—a professional dedicated to sourcing cargo that aligns with your truck’s transportation capabilities and preferred routes. A Dispatcher ensures that your truck is consistently on the move, allowing you to focus on driving and delivering.
While it may seem like an additional expense, the fees for hiring a Dispatcher typically range from 2% to 8%. This investment pays off by relieving you of the time-consuming task of searching for loads independently. With a Dispatcher, you can stay focused on the road, ensuring smoother operations and better use of your driving hours.
Promote Your Trucking Business
The best way to promote your business is through word of mouth. Ensure that your service is excellent, and that the loads you deliver are on time and in excellent condition. Another technique to find clients directly needing trucking services is through trucking load boards.
Starting a trucking business may not be easy, so one should always consider all the requirements and steps to start it so you will avoid any problems. You should have all the information about the business and everything that will help you achieve your goals. Seek guidance from professionals to navigate this journey, avoid headaches, and ensure a hassle-free registration process.