How Much Does It Cost to Start a Trucking Company?

Last Updated April 9, 2025

Starting your own trucking company is an exciting proposition. After all, you can make good money running a trucking business, all while enjoying the freedom that comes from making your own schedule.

However, starting a trucking company requires hefty planning. One of the most important questions you’ll need to consider is, “How much does it cost to start a trucking company?”

If you don’t have sufficient funding, you might be intimidated by the thought of launching your business. From equipment and insurance to working with freight brokers, there are many expenses involved with starting and running a trucking company. However, rest assured there are plenty of ways to mitigate these costs.

By understanding what the costs of opening a trucking business are and how you’ll cover these essential expenses, you’ll be better positioned to make your new business a success.

Trucking Company Startup Costs

Owner-operator startup costs can vary but usually range between $10,000 and $30,000 for starting a trucking business with a single semi-truck.

Here’s a look at the cost breakdown for starting a trucking company. Keep in mind that these numbers are averages, and your total expenses could vary:

Semi-Truck and Trailer Down Payment

Unsurprisingly, one of the biggest expenses for a trucking business is acquiring a semi-truck and trailer. New commercial trucks can cost anywhere from $80,000 to $150,000. While used trucks are cheaper, many still cost close to $100,000 depending on their size, age, and condition. Trailers typically cost $30,000 to $50,000.

Because of these high costs, new carriers typically need to finance or lease their equipment purchases. Financing usually involves a 10% down payment. When you finance your truck and trailer, you will eventually pay off your loan and own them outright. Leasing may be cheaper, but you are essentially renting your equipment with this option.

Related: Leasing vs. Buying a Commercial Truck

Insurance Down Payment

Commercial trucks are required to carry auto insurance and liability insurance, and the cost to insure a truck as a new driving authority can easily exceed $10,000. Because of this, trucking insurance costs may also need to be financed, with a large initial down payment followed by a series of smaller monthly payments.

USDOT Number

A USDOT number is required for trucking companies that have a gross vehicle weight rating of over 10,000 pounds and are involved in interstate commerce. Many states also require a USDOT number for intrastate commerce. You can register for a USDOT number with the Federal Motor Carrier Safety Administration (FMCSA) for $300.

Business Entity (LLC)

Setting up your trucking company LLC is an important part of starting your business because it separates your personal assets from your business assets and liabilities. This provides much-needed protection for your home, personal savings, and so on in case your trucking company defaults on a loan or is sued. The cost to file for an LLC varies from state to state with initial filing costs ranging from $35 to $500.

International Registration Plan (IRP)

Like LLC fees, IRP costs can also vary from state to state. You file your IRP application in your base jurisdiction—or the state where you establish your trucking business. Costs can range from $500 to $4,000 for apportioned plates.

Electronic Logging Device (ELD)

Trucking companies are required to have an ELD installed and operational in each truck. These devices cover everything that would once have been recorded in paper logs and use real-time tracking to help you remain compliant with service regulations. Most ELD systems generally cost around $100, after which you pay a monthly service fee.

GPS, Phone, and Other Equipment

Obtaining a GPS, phone, and other trucking equipment is essential for keeping you safe and connected while on the road. Even items like a microwave or mini fridge fall under this category. Total costs for necessary equipment can vary from a few hundred to a few thousand dollars, depending on the scope of the equipment you purchase.

Tips for Reducing the Cost of Opening a Trucking Company

There are numerous ways to minimize the cost of starting a trucking business. Here are some cost-saving strategies:

• Compare and Bundle Insurance Policies: Insurance is one of the costliest expenses associated with starting a trucking company. However, you can bundle packages, such as commercial auto liability with general liability, to reduce your total cost. Ensure you explore different providers so you’re getting the best rates.
• Stay Updated on Regulations to Avoid Fines: Make sure you’re up to dot with the FMCSA, DOT, and EMA’s regulations and mandates. A big part of running a trucking business is staying compliant.
• Be Careful With Lease Purchases: Sometimes, leasing a truck or other equipment can be more expensive than buying in the long run. For instance, you might be tempted by a lease purchase program, where you pay for your truck in installments. Crunch the numbers to ensure you’re not going to be able to afford paying those installments routinely.
• Invest in a Transportation Management System: A transportation management system (TMS) will help you streamline future operations, from optimizing route planning to offering advanced analytics to evaluate performance and efficiency.
• Ask Your Network for Advice: Ask existing trucking business owners for their advice on how to ease costs associated with starting a business in the industry. Take advantage of your network – your peers might let you in on some secrets that can help you down the line.

How to Finance a Trucking Business

The cost of trucking hit a 15-year high in 2021, which requires many would-be carriers to obtain financing if they wish to start a trucking business. If you’re unsure how to start a trucking business with no money or minimal money, there are several trucking financing options to consider:

• Bank Loans: Traditional bank loans offer affordable financing with low interest rates and predictable payments, but they require a high credit score and have long wait times. Therefore, many new carriers can’t qualify for standard trucking business loans.
• SBA Loans: The U.S. Small Business Administration (SBA) offers several types of loans to help businesses cover startup costs. However, they have long wait periods and require good credit.
• Equipment Financing: Financing equipment purchases can ease cash flow problems and help you increase business revenue, but this option tends to have high interest rates and can only be used for equipment purchases (like your truck and trailer).
• Business Line of Credit: A business line of credit offers a flexible credit line where funds renew as you pay off your debt. Shorter repayment periods and minimum withdrawal requirements make this better for companies with high short-term needs.
• Freight Factoring: Freight factoring is an extremely popular option for carriers in need of funding for their trucking business. Because of its popularity, we’ll discuss this financing option a bit more in-depth. The process involves selling your outstanding invoices to a factoring company, who then provides a lump sum of 80-90% of the invoice’s total value upfront. After the factoring company collects on the invoice, you receive the remaining balance of the invoice minus a small factoring fee.

Since factoring is not considered a loan, you are provided the money you need to run your business without going into debt. Of course, you need to have customers with outstanding invoices for freight factoring to serve as a useful financing solution. If you don’t have unfilled invoices, freight factoring isn’t an option.

How Freight Factoring Helps Trucking Businesses Overcome Hefty Costs

Freight factoring can be a powerful part of your trucking business financing model, helping you manage both startup expenses and the ongoing costs of a truck driving career. It also alleviates several time-consuming accounting responsibilities from your plate.

1. Funds Business Growth

Business owners often have to wait for customers to pay invoices before they can afford the costs that are necessary to expand their business.

With freight factoring, you get cash right away, allowing yourself the opportunity to invest in growth without waiting for loan approvals or invoice payments. This can allow you to accept new loads, hire additional drivers, and grow your business at a much faster rate than if you had to wait for necessary funds.

2. Improves Cash Flow

Freight factoring can dramatically improve your trucking business’s cash flow by providing a cash advance on your unpaid invoices. Rather than waiting weeks (or even months) for an invoice to get filled, you can get the cash you need to cover business expenses in 24 to 48 hours.

Getting paid early helps you maintain a positive cash flow so you can cover daily operating expenses such as fuel, food, and truck maintenance. You don’t have to worry about putting off certain expenses until an invoice payment comes in.

3. Limits Debt

Freight factoring enables you to avoid other financing options that incur debt. Even bank loans and SBA loans have greater long-term expenses than you would expect due to interest payments. With freight factoring, you don’t pay interest because it is not a debt. You’re not borrowing money—you’re getting an advance on an invoice.

Staying out of debt helps you save money in the long run because you won’t have to pay recurring interest charges. You also don’t have to worry about how missing a loan payment could hurt your credit score and financial standing. You’ll maintain equity in your trucking business even as you fund growth.

In-Summary: Cost of Starting a Trucking Company

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Cost of Starting a Trucking Company FAQs

How much money do you need to start a trucking company?

On average, carriers will need between $10,000 and $30,000 to start their own trucking company. Costs can vary based on factors such as the type of equipment you purchase and the type of truck you’re driving.

What is the average cost of starting a trucking company?

The average cost of starting a trucking company is around $25,000. This figure factors in expenses such as a down payment for a truck, down payment for insurance, permits, equipment such as an ELD and a GPS system, and business registration fees.

What is the cost of owning a semi-truck?

New semi-trucks cost $80,000 to $150,000 while new trailers cost $30,000 to $50,000. Many carriers finance their purchase and make a 10% down payment. After doing so, they make monthly payments to cover the loan. They will also be responsible for ongoing maintenance, fuel, and insurance costs—so ownership expenses can add up quickly.

How much does obtaining a trucking LLC cost?

The cost of obtaining a trucking LLC will vary from state to state. For example, in Montana, filing fees for an LLC only cost $35, while filing fees in Massachusetts are $500. Many states don’t charge recurring LLC fees after the initial filing fee, while others charge recurring fees ranging from as little as $7 to as much as $800 per year. Where you live will significantly affect the cost of your trucking LLC.

What are some common financing options for trucking businesses?

Common financing options for trucking businesses include bank loans, SBA loans, equipment financing for trucks and trailers, or opening a business line of credit. Trucking businesses with paying customers can also use freight factoring to receive advance payment on unfilled invoices.

Michael McCareins

Michael McCareins is the Content Marketing Associate at altLINE, where he is dedicated to creating and managing optimal content for readers. Following a brief career in media relations, Michael has discovered a passion for content marketing through developing unique, informative content to help audiences better understand ideas and topics such as invoice factoring and A/R financing.