How To Start a Trucking Business in 2025

The average consumer may not give much thought to how the goods they purchase move across the country. But it’s a big business, mostly handled by small trucking companies.

The latest figures from the American Trucking Associations (ATA) show trucks transport nearly three-quarters of US freight by weight—more than 11 billion tons. Furthermore, according to the ATA, it’s a growing industry—expected to reach nearly $1.5 trillion in revenue by 2035. The industry is dominated by small businesses, with about 95% of carriers operating 10 or fewer trucks.

If you have a head for logistics and some experience in the trucking industry, starting your own trucking company might be a viable route.

Types of trucking businesses

• Full truckload (FTL)
• Less than truckload (LTL)
• Flatbed services
• Refrigerated services
• Expedited trucking
• Intermodal shipping
• White-glove services

It’s possible to categorize trucking businesses in multiple ways, including by geography (local, regional, long-haul) and vehicle type (dry vans, box trucks, semis, tankers). When you’re considering what type of trucking company you’re best suited for, start by determining the service you’d like to provide. This will often determine where you operate and what type of truck you’ll need.

Full truckload (FTL)

Full truckload (FTL) simply means you’re serving one client at a time, transporting a single shipment filling the entire truck. FTL businesses operate across industries but often work with large customers since the shipments are substantial enough to fill a truck. Transit time is generally important for FTL customers, as the trucks don’t have to stop for multiple pickups or deliveries.

Less than truckload (LTL)

Less than truckload (LTL) is when several customers share space on your truck, as no single client’s goods fill up the truck. LTL businesses often work with smaller companies who use consolidated shipping for cost savings. The cargo may require more handling than FTL cargo since you’ll be loading and unloading multiple times during a job.

Flatbed services

Unlike most of the other trucking services, flatbed trucking doesn’t involve an enclosed trailer. Vehicles transport goods via an open-air platform, which can more easily accommodate large, heavy, irregularly shaped items. Flatbed trucking businesses frequently work with customers in construction, manufacturing, and agriculture. They may also deliver to remote or nontraditional shipping locations since cargo is easier to unload from flatbed trucks.

Refrigerated services

Refrigerated trucking, also known as reefer trucking, uses insulated, temperature-controlled vehicles to transport goods that warm or inconsistent temperatures may spoil or damage. Frozen food, cosmetic, and pharmaceutical companies often use reefer trucking services for temperature-controlled shipping. Maintenance for reefer trucks can sometimes be more expensive than for other trucks, and you’ll need to understand and comply with additional regulations around food safety.

Expedited trucking

If a company needs to deliver something quickly, it may engage an expedited trucking business. Expedited trucking is all about rush deliveries. These businesses can work with a wide variety of customers (and cargo) and use different types of vehicles. Since time is of the essence, route planning and logistics are important, and truckers generally don’t stop along the way.

Intermodal shipping

Some cargo requires different methods of transportation to reach its destination—traveling by train and ship, for example. But how does it get from the rail station to the port? That’s where intermodal trucking comes in. This service moves goods between other transportation methods. Intermodal trucking businesses don’t handle the actual product, as they just work with shipping containers.

White-glove services

White-glove trucking is a value-added service that may include personalized delivery, on-site placement of the goods, and even assembly or installation. It is a type of last-mile delivery, which is the final stage in getting an item to the customer. White-glove delivery businesses focus on handling, setup, and support as much as they do transport. Furniture companies often use white-glove trucking services, as do businesses selling exercise equipment, electronics, and luxury goods.

How much does it cost to start a trucking business?

People typically express the cost of operating a trucking company as cost per mile—total costs divided by miles driven. According to the American Transportation Research Institute (ATRI), the average cost of operating a truck was $2.26 per mile in 2024.

However, trucking companies’ overhead can vary significantly based on a variety of factors. Let’s consider some of the types of costs you may face.

Startup costs

Whether you lease or buy your own truck—even if you buy used—the cost of your rig is one of the biggest factors in how much you need to invest upfront. Purchasing a used or new truck and trailer may cost anywhere from $15,000 to more than $150,000.

In addition to fees for registering your small business, you’ll also have to register your truck and make sure you’ve met all the legal requirements for operating a freight vehicle. For example, getting your motor carrier (MC) number from the Federal Motor Carrier Safety Administration (FMCSA) costs $300 per operating authority (commercial authorization). See Step 6 below for more information on this.

You’ll also need a commercial driver’s license (CDL) if you’re an owner-operator. To get a CDL, you’ll need to complete a training course, which can range from $4,000 to $12,000.

Ongoing costs

In addition to startup costs, a trucking business incurs ongoing costs. These include:

• Insurance. Since trucking deals with transportation, large and dangerous vehicles and equipment, and privately owned goods, it’s important to get comprehensive insurance coverage (covered in Step 6 below).

• Fuel. When driving a large vehicle long distances, fuel costs are a major factor to consider. ATRI reports fuel can account for up to 40% of total operating expenses.

• Fuel taxes. Per the International Fuel Tax Agreement, you’ll also need to pay fuel taxes through the International Fuel Tax Association (IFTA), which keeps a helpful matrix on its website.

• Maintenance. When you’re driving a truck long distances, repairs can account for 10% to 15% of operating costs.

• Hiring employees. Once you decide to scale and hire drivers, you’ll need to pay hourly wages and payroll taxes.

How to start a trucking business in 7 steps

1. Define your operational scope
2. Determine your financing and pricing model
3. Write a business plan
4. Buy or lease a truck
5. Register your business
6. Obtain the right permits, licenses, and insurance
7. Develop a marketing plan

Starting a trucking company can be more complex than other small businesses, due to the regulations required by state, federal, and international authorities. However, it can be worth it for the freedom, job security, and career growth. Here’s how to get started.

1. Define your operational scope

There are so many different ways to operate a trucking business. Before you get started, consider the following questions, all of which will impact your startup investment needs, the kind of truck you’ll get, and legal requirements:

• Geographic scope. Will you drive locally, regionally, nationally, or internationally?

• Freight scope. Will you haul general commercial goods, fragile or high-value merchandise, frozen food needing cool storage, or heavy hauls requiring a flatbed?

• Route scope. Will you try to drive the same route consistently or take on new routes per job?

• Personnel scope. Will you be an owner-operator or hire employees? Which days will you be home versus on the road? Will you drive on a set schedule or a flex schedule to accommodate more work?

2. Determine your financing and pricing model

To run a successful trucking business, you’ll need to secure enough funding. Many new businesses require startup capital. Trucking businesses may require a hefty upfront investment due to the need for a truck, training fees, and registration costs associated with federal regulations. If you don’t already own a truck, you might consider financing options, like an SBA loan from the Small Business Administration. A business loan can help you cover costs like your truck and training.

You’ll also want to choose a pricing structure that makes sense for your business. For a trucking company, cost-plus pricing could work well. You’ll calculate your costs, including fuel, equipment, insurance, wages, and more. Then add the percentage profit you need to make to cover those costs and pay yourself. You might express this as cost per mile.

Many trucking businesses use a combination of spot and contract pricing. Contract pricing, which is an agreed-upon rate for a specific route or set of routes and time frame, is the most prevalent model in the industry. For quick, one-time shipments, your business may utilize spot pricing. Spot quotes are based on current market conditions and frequently negotiated just days (or less) before the ship date.

3. Write a business plan

Once you’ve defined your operational scope, you can begin to put together a business plan. This can serve as a roadmap and is also an essential document when you’re applying for funding. Use Shopify’s free business plan template or address each of these bullet points:

• Executive summary. Think of this as a one-page summary of your entire business plan. Consider writing this section last, after you’ve worked through the other items in your plan.

• Company overview. This is a great place to put a simplified version of your operational scope. This will help potential customers understand your competitive advantage.

• Market analysis. Speaking of competitive advantage, dig into some market research to determine whether competitors are currently meeting your target customers’ needs. Is there enough demand to support the entry of another trucking business or owner-operator in the market?

• Marketing plan. Write out your plan to promote your services to your customer base. How will you find new business?

• Financial plan. A financial plan outlines how money will flow in and out of your business and your path to profitability. If you’ve already been in business for a while, you can include your balance sheet, cash flow statement, and income statement. If you’re just starting out, create projections of your income and expenses based on your pricing and current market conditions, and outline any business capital you have or plan to raise. 

4. Buy or lease a truck

The decision to buy or lease is largely based on your financial situation. Buying your truck outright tends to make sense if you have a good credit score, which is typically required to buy a commercial vehicle. You’ll also need enough for the down payment, which can be as much as $50,000. Buying new means your vehicle is more likely to be reliable and come under warranty. If you’re buying used, you can get a better deal, but with such high-use vehicles, it could mean a shorter life span.

Leasing trucks is often easier and could make sense in the short term while you gather the capital and credit necessary to buy a rig.

Although the truck is far and away the biggest purchase, you’ll also want to explore software and tools to help you operate your trucking business. This should include accounting tools and payroll software as well as industry-specific apps to help with driver management, route optimization, fleet management, dispatching, and more. All of these functionalities are often features in transportation management systems (TMS) platforms like TruckLogics or Tailwind TMS.

5. Register your business

The next step is to register your business so you can get an employer identification number (EIN) from the IRS. You’ll need that number for some of the mandatory registrations.

To register your business, you’ll need a business name (check out Shopify’s business name generator) and business structure. Which structure you choose will depend on your risk tolerance and revenue potential. Many small businesses structure themselves as limited liability companies (LLCs) or S corps. Unlike sole proprietorships, LLCs and S corps keep business and personal assets separate. With either structure, a business can hire employees.

You’ll also need to hire a process agent, a designated representative to receive legal documents on behalf of your business. Designating a process agent is required for all trucking businesses; you can do so through companies like National Registered Agents. Carriers need process agents in every state in which they operate or travel.

6. Obtain the right permits, licenses, and insurance

The list of permits, licenses, and insurance requirements is fairly lengthy when starting a trucking company. New truck operators must pay careful attention to regulations, especially because the FMCSA will conduct a new entrant safety audit during your first 12 months of operation to ensure compliance.

• Business license. Although most states don’t require a general business license, some require various licenses based on your business’s activities.

• Commercial driver’s license. You’ll need a commercial driver’s license (CDL), obtained through your local Department of Motor Vehicles (DMV), to operate any commercial vehicle.

• US Department of Transportation (USDOT) number. You’ll need this identification for interstate transport; it’s obtained through the FMCSA.

• Motor carrier number. Truckers operating as for-hire carriers also need this identification, which is available via the FMCSA as well.

• Unified carrier registration. Any trucking company with a USDOT number must also complete unified carrier registration as a fee for operating on interstate highways. You’ll need to obtain this in the state where your business operates.

• International registration plan (IRP). All 26,000-plus-pound trucks crossing state lines must be registered under the IRP.

• International Fuel Tax Agreement (IFTA) stickers. After registering with the IFTA, drivers must display stickers on the body of the vehicle as proof.

• Standard Carrier Alpha Code (SCAC) from the National Motor Freight Traffic Association (NMFTA). Trucks crossing international lines or doing business with commercial shippers in certain industries may need this two- or four-letter code.

You’ll also want to make sure you’re carrying cargo insurance, commercial auto liability insurance, physical damage insurance, general liability insurance, and primary trucking liability insurance.

7. Develop a marketing plan

Trucking businesses can find clients via trucking-specific job boards like CDLjobs.com and AllTruckJobs.com. They can also connect with freight brokers, who are essentially intermediaries connecting drivers with companies needing freight haulers.

In addition to these niche avenues, consider tried-and-true methods of marketing a small business:

• Create a website and online presence. Build a website where potential customers can read about your company and services and learn how to contact you. Expand your online presence via social media accounts as well.

• Share content. Customers respond to stories featuring people they can relate to. Promote your services by sharing stories from the road or introducing yourself through a company blog.

• Industry networking. Participation in events and trade shows can help you form connections with potential clients and brokers. You can also meet other business owners with whom you can swap tricks of the trade and overflow jobs.

• Lead lists. You can purchase databases with shipper contact information from lead generation companies and do your own marketing outreach.