What Are the Different Types of Trucking Services That You Can Provide?

A trucking business basically entails carrying goods from one location to another. There are, however, a few areas in which you can specialize within the trucking business.

You can do that by offering a specific type of trucking service.

Here are some of the most popular types of trucking services that you can offer:

  • Heavy Haul/Specialized
  • Temperature Controlled
  • Business-to-Business Trucking Service
  • Door-to-Door Trucking Service

Regardless of which trucking services you want to offer, GovDocFiling can help you register your trucking company.

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What Do You Need to Start a Trucking Business LLC?

Starting a trucking business is fairly easy if you do it with GovDocFiling.

Before you officially start a trucking business, you need to make sure that you have all that it takes to run it successfully. Starting a trucking company might be easy, but making it profitable takes effort.

Here is a quick checklist of the things you should do before starting a trucking business:

Assess the Business Feasibility

Starting a trucking business is a cost-intensive undertaking, so you need to make sure that you are ready to do it right.

You need to do thorough market research and understand the market potential and level of competition in the trucking industry. Consider:

  • How easy or difficult is it to enter the market, given the current market conditions and level of competition?
  • Who are the top players in the trucking industry and can you compete with them?
  • Is there enough demand in the market for you to start a trucking business?
  • Who will be your target customers if you do start a trucking company?
  • How long before you expect to break even and start making profits?
  • Is there enough profit margin in your business to make it a successful venture?

Look at all possible aspects of your trucking business before you decide to invest in it. Once you are convinced that it is a feasible business idea, then you can move ahead.

Set a Budget or Get Financing

To start a trucking company, you will need to invest heavily in buying trucks and other equipment.

If you want to offer specialized trucking services like temperature-controlled carriers or heavy equipment carriers, you will need to spend even more.

You need to estimate the initial investment (startup costs) that will be needed to start a trucking company and ensure that you have enough.

You will need approximately $6,000 to $15,000 just for startup costs, without the cost of trucks and other equipment. Determine the number of trucks you will need and multiply that by the per-unit truck cost to get an estimate.

Here are some sources you can use to finance your trucking company:

  • Personal Funds
  • Investor Partnerships
  • Bank Loans
  • Private Lenders
  • Credit Unions
  • Government Funding Programs

You should have enough money to buy or lease trucks and hire drivers before you start a trucking company. It is a cost-intensive business and you need to plan accordingly.

Choose the Type of Trucking Service

This is an important thing and that will determine your entire business plan. Choose the type of trucking business you want to run and what services you want to offer.

Remember, specialized carrier services require more investment and effort but also have much higher profit margins.

Pick a Suitable Legal Business Structure

To start a trucking company, you need to first register it with the state and federal governments. That, in turn, requires you to choose an appropriate business structure that you can register.

Here are the different types of business structures that you can choose from:

Each of these has its own pros and cons, but forming an LLC (limited liability company) is one of the best options for trucking businesses. It gives you greater control over your business and also allows you to protect your personal assets in case the business goes into bankruptcy.

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How to Start a Trucking Business LLC in 9 Steps

Starting a trucking business is no easy task, so make sure that you do it right. You need to cover all your bases and complete all the steps to start a trucking business LLC.

Here is the step-by-step process of how to start a trucking business LLC:

Step 1

Pick a Niche

Do you want to move household goods and be in the movers and packers niche? Or, maybe you want to grab government contracts to transport heavy machinery? Choose a niche where you want to operate and then plan your next steps accordingly.

Step 2

Set the Right Price for Your Services

Study the market and choose a competitive pricing strategy and rates for your trucking business. Estimate your operations costs and other expenses before you set your price rates to make sure you will be able to make a profit.

Step 3

Pick a Name for Your Trucking Company

Choosing a good business name is important for every company, regardless of the industry that you operate in. Pick a unique name that is relevant to your business and can effectively convey the kind of services that you offer.

Step 4

Start a Trucking Company by Forming an LLC

LLCs are comparatively easy to form and provide a lot more flexibility than other types of legal business entities. The paperwork required to form an LLC and the compliance requirements are also relatively less complicated.

Step 5

Use GovDocFiling’s Services for Federal and State Filings

Use our services to register your business with the state and complete all the legal documentation and requirements. For an LLC, you will need to file Articles of Organization and also create an LLC Operating Agreement.

We’ll also help you get a tax ID or Employer Identification Number (EIN) for your trucking business LLC.

Step 6

Get the Required Business Licenses and Permits

To start a trucking company legally, you will need to obtain all the required licenses and permits. You will, for example, need either a CDL-A or CDL-B commercial driver’s license for your truck drivers.

In the United States, trucking companies also need a DOT number and a motor carrier (MC) number to operate. Trucking businesses also need to sign an International Fuel Tax Agreement (IFTA).

Step 7

Open a Separate Bank Account for Your Business

This is a must-have for any business owner to ensure that personal and company finances are kept separate. Open a business bank account to start your trucking company by submitting your LLC formation documents and completing other paperwork.

Step 8

Set Up Bookkeeping and Accounting

When you run a business, you need to keep accurate records of all your financial transactions. This can help you keep track of all of your business expenses and revenue.

Keeping track of your cash flow will also help ensure that you have enough working capital at any time.

Step 9

Start Reaching Out to Potential Clients

Trucking companies usually have big, long-term contracts with clients, unless you are in the movers and packers niche. Once you set up your business, you need to prepare a sales pitch and start reaching out to your potential clients. Also, create an SEO-friendly website with location-specific keywords to help customers find you.

Congratulations! Now you know how to start a trucking business.

Let us help you with all the boring legal documentation and form filing to start a trucking business as soon as possible.

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Why Should You Choose GovDocFiling for Starting a Trucking Business LLC?

For starting your trucking company in the US, you need to do tons of paperwork and fulfill numerous compliance requirements.

We can take the load off of you and take care of all the legal and regulatory aspects. All you need to do is fill out our LLC formation form and we will take care of the rest.

With GovDocFiling, you will get the following benefits:

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Frequently Asked Questions

What is an example of a tax ID number?

A federal Tax ID Number is an identification number used by the Internal Revenue Service (IRS) to administer tax laws. This number is issued either by the IRS or Social Security Administration (SSA). A business Tax ID number is required on tax return forms.

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How do I get an EIN application?

An Employer Identification Number is a nine-digit number that identifies your business. It works much the same way your social security number does. If your company has employees, is a corporation or partnership, has a Keogh Plan or fits one of several other situations, it must have its own EIN.

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How many EIN numbers can I have?

As a business owner, you probably know your company needs an EIN (or Tax ID Number) issued by the IRS for tax purposes. But what if you own multiple businesses or operate different divisions of the same entity?

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What is the purpose of a tax ID number?

Your business is going to need to file income taxes. The Internal Revenue Service uses Tax Identification Numbers to distinguish between individuals, business, and nonprofit organizations, but business tax ID numbers should be distinct from your personal federal tax ID number.

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What does it mean to have a tax ID number?

For the IRS to conduct its business, it must have an easy way to identify each individual and business. To do this, they require each individual and business to have a tax ID number.

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How does an SSN differ from a tax ID?

A social security number (SSN) is a tax code used by an individual, while a tax ID is a nine-digit tax code for a business entity. For a business entity, a tax ID is usually called an EIN.

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What is a DBA?

If you’ve ever considered working for yourself, or starting your own business, you may have wondered: what is a DBA? Is a fictitious business name the same as a DBA? What are the benefits of a DBA to my business and myself?

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Can a DBA be filed for all business types?

Each type of business entity has clear advantages and disadvantages. Can a DBA be filed for all business types? In most cases, yes; but understanding what a DBA is and what it’s limitations are will help you decide if it’s worth

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How many DBA names can I register?

DBA application filing is a process overseen by state DBA laws and local government, protecting the public from nefarious business owners. DBA is an abbreviation for “doing business as,” and is also referred to as a fictitious name or trade name.

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Do I need a DBA?

If you’ve ever considered freelancing, or starting your own business, you should take a few moments to answer this very important question: Do I need a DBA? Not every small business owner needs to pursue DBA application filing, but

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Are any words prohibited in a DBA name?

DBA is an acronym that stands for “doing business as.” You may be wondering “do I need a DBA?” If you intend to do business using a name other than your legal business name, you need a DBA. DBAs are common for sole proprietors or partnerships that do not want to use the owners’ legal names to do business.

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If you’re starting a business, there are more then a few abbreviations you’ll need to remember. Filing a DBA application, or applying for an EIN, are two common steps for new business owners. However, they are not the same thing, and as a business owner you should know the difference.

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What is an LLC?

A limited liability company, commonly referred to as an LLC, combines the taxation benefits of a partnership with the limited liability of a corporation. Instead of partners, LLC business owners are called members, and there can be several, or a single member.

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What are the benefits to filing for an EIN as an LLC?

A limited liability corporation is one in which the members aren’t personally responsible for any company liabilities or debt. Limited liabilities have the protections of a corporation but the flexibility of a partnership. If your business is listed as a limited liability corporation, you can benefit further by applying for an Employer Identification Number.

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What’s the difference between an LLC and a corporation?

The fine print that separates a limited liability company (LLC) from a corporation can be overwhelming for new business owners or entrepreneurs. While the minutia of these details might be best suited for a legal advisor or accountant, the broad differences are fairly easy to understand, and they might be enough to help you make a judgment

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What happens if I apply for the wrong LLC?

Limited Liability Companies (LLC) are popular business structures because they offer personal liability protection for members and don’t have all the formalities that corporations do. LLCs also enjoy pass-through taxation, which means the company doesn’t pay federal income taxes; instead,

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What legal documents do I need to start an LLC?

For entrepreneurs thinking about starting their own business, forming an LLC is an ideal option, as such an entity provides the owners protection from lawsuits, business debts and other business indiscretions. However, in order to obtain that protection, there are a number of documents that the business owner or owners must file with the state government prior to conducting business.

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What are the differences between a partnership and a Limited Liability Company?

A Limited Liability Company is a legal entity all its own, while a partnership is owned by two or more people who share legal responsibility of the business entity. In a partnership, the business does not possess a legal identity outside of the business owners. A Limited Liability Company offers more flexibility in terms of operations and personal asset protection.

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What is a C-Corporation?

A C-Corporation is just anther way of saying corporation. It means the same thing. Corporations are incorporated business entities that file Articles of Incorporation with the Secretary of State or a similar government agency.

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Can a C-Corp have multiple owners?

There are certain C-Corp requirements to meet whether you want to start a corporation with one shareholder or dozens. It is certainly possible to apply for a C-Corporation EIN with multiple owners, and when forming a C-Corp in this manner, there are a few points to keep in mind.

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Why is a C-Corp taxed differently than an LLC or S-Corp?

Unlike other business structures, C-Corp taxation is significant in that corporations are taxable entities. Corporations are taxed like an individual and contribute according to corporate income, and then again on shareholder tax returns. This is commonly called ‘double taxation’.

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What is an S-Corp?

S-Corporations, sometimes called S-Corps, can be useful ways for business owners to avoid what’s called “double taxation”, while also protecting shareholder assets from personal liability. It’s a mix of advantages drawn from other types of business entities; and it isn’t nearly as complicated or time consuming as you might think to establish.

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How do I file to become an S-Corporation?

Before we dive into how to file to become an S-corporation, let’s take a look at what an S-corporation is, exactly, and why you may want to establish this type of business entity for your company. S-corporations are similar to partnerships, or sole proprietorships, at least in terms of how the company will affect you financially.

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What is a disqualified S-Corporation?

There’s No Such Thing as a Disqualified S Corporation. Luckily, S corporation disqualification is more of an urban legend than fact. In 2010, Congress attempted to pass a measure that would have disqualified some S corporations, primarily small businesses, from using S corp tax structures when filing.

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Start a Trucking Business LLC the Right Way!

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