Tag: trucking

A Comprehensive Guide: How to Start a Trucking Company

If you’re a truck driver wanting to strike out on your own, you may wonder how to start a trucking company. Starting a business can be overwhelming if you don’t know where to begin, but it doesn’t have to be an insurmountable challenge. This guide will help you learn all about starting your trucking business and get it off on the right foot from the start.

Why Start a Trucking Company?

There are many reasons why you might want to start a trucking business. The industry is profitable, even in challenging times like the recent pandemic. It allows for a level of freedom and flexibility that is hard to find in many industries. And compared to many industries, trucking can be a simple business to begin. 

How much do trucking company owners make?

Wages for trucking owner-operators are variable depending on the part of the country where you start your business. According to ZipRecruiter, the national average is almost $250k annually, with some states offering as much as $30k more. But of course, expenses have to be taken into account.

As for gross profit, financing company Coastal Kapital notes that “On average, a full-time owner-operator trucking business’s industry-standard turnover figure will be around $100,000 and $140,000.” Generally speaking, long-haul trucking pays better than local businesses.

How to Start a Trucking Business

Starting a trucking business can be a lucrative venture, but it requires careful planning and execution. You must know how to secure the right vehicles and licenses, build a strong client base, comply with regulations, and file taxes properly. But even if you’ve never run a business of any sort before, with the right advice, you can get your trucking company going strong, starting from just a single truck.

Requirements to start a trucking company

Once you’ve decided you want to start a trucking business, there are a few things you’ll need to research before you get going. Carefully look into the opportunities available in your area and create a business plan. This should detail how your company will operate and what it will do. There are plenty of free example business plans available online, so read through several before you begin writing your own. 

How to start a trucking business with one truck

Once you’ve created your business plan, you’ll need to register a business name and obtain an EIN (employer identification number). You’ll also need a permit from the Federal Motor Carrier Safety Administration (FMCSA) to carry goods across state lines (if that’s your intention). If you plan to operate within ports and airports, you’ll want to secure a Transportation Worker Identification Credential (TWIC) card as well. Once all of these credentials are yours, it’s time to get started.

Unless you already own a truck, you’ll need funding to purchase one. Look into Small Business Authority (SBA) loans or freight factoring as a funding source. Alternatively, you may choose to lease a truck. Some truck leasing companies even offer lease-to-own plans that allow you to purchase the vehicle at the end of the lease. This will give you more time to come up with the funding to purchase your truck if that’s what you want to do.

Finally, you can decide how you want to market and build your business. Will you go through freight brokers, load boards, partnerships with other carriers, or business networking? Perhaps you want to utilize a combination of several methods. To ensure you retain customers and build business relationships, focus on offering good customer service and keeping your costs low to offer competitive pricing. Trucking management software like TruckLogics can help you ensure your business runs smoothly from day one.

The Real Cost of Starting a Trucking Business

Outside of purchasing a truck (which is not required as leasing opportunities are plentiful), starting a trucking business is relatively inexpensive compared to many other businesses. Trucker Daily estimates that you can start your business with as little as $6,000-$15,000. This includes the costs of licensing and other paperwork that you will need to get started. 

Potential Challenges and How to Overcome Them

So far, starting a trucking business sounds pretty simple. But there are some things to know about trucking before you get started.

First, there are many compliance requirements that you will need to meet in order to avoid fines and other penalties. Whether you’re operating under your own authority or someone else’s, you’ll need to stay on top of these requirements. There’s a thorough compliance checklist available from Schneider Owner-Operators. 

Next, you want to stay on top of your finances and plan for tax time. Fortunately, there are a lot of trucking expenses that qualify for tax deductions, but you must keep receipts from day one in order to claim them. You’ll also need to keep fuel and mileage records for IFTA filing, and you’ll need to file the Heavy Vehicle Use Tax once a year.

FAQs

How profitable is starting a trucking company?

Trucking is a very profitable industry with plenty of opportunities for newcomers. According to Boss Magazine, trucking companies can make an average profit margin between 2.5% and 6%.

Is it hard to start a trucking company?

While starting a trucking company may be time-consuming, it’s not actually very difficult. As long as you take the time to ensure you’re complying with all federal, state, and local transportation regulations, the rest should be fairly straightforward.

How do I start a trucking company and get loads?

There are several options for sourcing loads for your new trucking company. You may use load boards, freight brokers, partnerships and other business relationships, or even traditional marketing methods. 

How do I start a trucking business with little money?

The biggest expense when starting a trucking business is purchasing a truck. If you don’t have funding to do so, you can still start your business by leasing your truck or even entering a lease-to-own agreement.

Trucking Industry Trivia with ExpressTruckTax!

Do you think you know everything about the trucking industry? Whether you have been driving a truck for years now or just getting started, it’s time to test your knowledge about trucking. Who knows, you might learn a few facts about trucking that you didn’t know before.

Q: How long does a typical semi-truck engine last?

A: A semi-truck engine can last up to around one million miles, while a typical car engine usually only lasts around 200,000 miles.

Q: What does the word “semi” actually refer to?

A: The word “semi” actually refers to the trailer pulled by trucks. This is because it only has wheels on one end. Semi-truck refers to the truck and the trailer combined. 

Q: What is the distance it takes for a semi-truck to come to a complete stop?

A: The distance it takes for a semi-truck to come to a complete stop is around 720 feet, which equals the length of two football fields. 

Q: True or False? Semi-trucks get into fewer accidents on the road than regular cars?

A: True. Semi-trucks get into three times fewer accidents than regular noncommercial vehicles. 

Q: How long is the average truck and trailer?

A: The average truck and trailer are around 75 feet long.

Q: How much does a semi-truck cost?

A: The average semi-truck can cost anywhere between $80,000 and $200,000 depending on the brand and if you are buying it new or used.  

Q: What average speed should a truck drive to save fuel?

A: If you drive your truck at speeds of around 65 miles an hour, you will consume over twenty-five percent compared to if you were to drive around 75 miles an hour. This is good to know especially with fuel costs being high.

Q: How many miles does the average trucker travel in a year?

A: On average, a truck driver travels around 100,000 miles in a year. 

Q: True or false: Interstate highways that run East-West have even numbers and those that run North-South have odd numbers?

A: True. If an interstate has an even number (Example: I-80) it will run East-West and if it has an odd number it will run North-South (Example: I-85). 

Q: How much has emission from heavy trucks been reduced since the 1980s?

A: Emission from heavy trucks has been reduced by around 95% since the 1980s. Clean diesel technology has made it possible for around 60 modern-day trucks to put out the amount of emission equivalent to one truck in the 1980s.

How many of these questions did you know the answer to already? Even if you didn’t know many of these answers, there’s always something new to learn about the trucking industry. ExpressTruckTax is here to help drivers in the trucking industry file Form 2290 for their Heavy Vehicle Use Tax. This must be filed by drivers of trucks weighing 55,000 pounds or more annually to the IRS. Hopefully, you knew that already. If not, it is not too late to file your Form 2290 and avoid any additional penalties. What are you waiting for? File your Form 2290 today and who knows, maybe learn even more about the trucking industry from us in the future!

FAQ Friday: What are the Benefits of Partnering with ExpressTruckTax?

What is Form 2290?

Form 2290 is an IRS tax form for the Heavy Vehicle Use Tax (HVUT). This form must be filed annually by drivers of vehicles weighing 55,000 pounds or more.

Why is Form 2290 Important?

Form 2290 is important because, after filing, drivers receive a Stamped Schedule 1, which is required to get a vehicle’s tags and registration. 

Who Needs a Copy of the Stamped Schedule 1?

It is important that a driver carry a copy of their Stamped Schedule 1 in their truck in case they are pulled over. It is also important that the carriers and associations that drivers drive for get a copy of the Stamped Schedule 1 as well. These carriers and associations typically request copies of these Stamped Schedule 1’s to have for their records. 

How can ExpressTruckTax benefit Carriers and Associations?

ExpressTruckTax offers a special feature that carriers and associations gain by becoming partners with ExpressTruckTax. ExpressTruckTax offers a helpful option for carriers and trucking associations where they are able to partner with ExpressTruckTax. Every affiliate that decides to partner with ExpressTruckTax gets its own Form 2290 filing portal where drivers can go to file. Not only that but the Stamped Schedule 1 will be automatically sent to the driver’s carrier or association after filing.

The best part is that it is completely free to those who partner with ExpressTruckTax and open one of these portals and the portal will feature the carrier or association’s logo. If a partner does not want a portal, they can opt-in for a backslash site which is a link they can give drivers to file Form 2290 through ExpressTruckTax.

Each carrier or association that partners with ExpressTruckTax will be added to a list that drivers can go to when filing their Form 2290 and select the carrier or association they drive for. Upon selecting a carrier or association, the driver’s Stamped Schedule 1 will be sent directly to the carrier or association once Form 2290 is accepted.

Become a Partner Today!

There are many benefits that come from carriers and associations partnering with ExpressTruckTax. It is helpful to both carriers and associations and the drivers that drive for them. By providing drivers with a designated place to file, it will guarantee that all of the Schedule 1s will be received to avoid fines. What are you waiting for? Partner with ExpressTruckTax today!

Important Forms And Deadlines Truckers Need To Know

When taking up the occupation of being a truck driver there are many things to consider, including what forms you have to file and when and what tags you need to get for your truck. The dates and names can get a little confusing so the purpose of this helpful guide is to explain the purpose of each form and when they are due. 

Form 2290

What is it?

The Heavy Vehicle Use Tax (HUVT).

Who has to file?

If a vehicle is over 55,000 pounds that travels more than 5,000 miles in a year then the Form 2290 has to be filed. If the vehicle travels less than 5,000 miles in a year it is considered suspended. If the vehicle only hauls agriculture and travels less than 7,500 miles in a year it is considered suspended as well. Even if the vehicle is suspended, Form 2290 still needs to be filed. 

When is the deadline? 

The deadline to file your Form 2290 is August 31st each year unless it falls on a weekend or a holiday it is then moved to the next business day, but you are able to prefile for the form starting in May. When you put your truck on the road for the first time also depends on when your 2290 is due. If you put your truck on the road in October you have to file your Form 2290 by the end of November. 

Where to File?

You can use ExpressTruckTax to file your Form 2290 in just a few easy steps! 

IRP

What is it?

The International Registration Plan (IRP), which is the plates on a truck.

Who has to File? 

If a truck is crossing state lines, weighs over 26,000 pounds, and has three or more axles, they qualify to get the IRP.

When is the Deadline?

It depends on the State/base jurisdiction. Some states have set deadlines and in other states the deadline is the same month every year based on the month you first registered. 

Where do you Renew your IRP?

At your local IRP office in your base jurisdiction. 

IFTA

What is it? 

International Fuel Tax Agreement

Who has to File?

Commercial motor vehicles that travel through more than one jurisdiction and purchase fuel in the different jurisdictions are required to file IFTA. 

What is the Timeframe?

The IFTA is actually filed on a quarterly basis. The quarters are as follows:

Quarter 1: January 1 – March 31

Quarter 2: April 1 – June 30

Quarter 3: July 1 –  September 30

Quarter 4: October 1 – December 31

When is the deadline?

Quarter 1: April 30 (May 2, 22)

Quarter 2: July 31

Quarter 3: October 31

Quarter 1: January 31

(This also depends on if the deadlines fall on a weekend or holiday it will be moved to the next business day)

Where do you Report and File your IFTA?

TruckLogics offers IFTA Reporting for $24.95 per report per quarter. You can file your IFTA with your base jurisdiction. 

UCR

What is it?

It Stands for Unified Carrier Registration Program.

Who has to File?

Commercial vehicles carrying cargo over state or international lines have to file.

When is the Deadline?

December 31st

Now that you have learned the different types of forms and tags needed to be a truck driver, write down these dates on your calendar or put them in your phone. They are important and missing them might lead to penalties and fines. File your 2290 with ExpressTruckTax and report your IFTA today with TruckLogics IFTA Only option!