How Much Does It Cost to Start a Trucking Company?

“$10,000 to $200,000.” That’s not a startup cost estimate. That’s the distance between a shed and a mansion.

Here is what it actually costs, line by line, organized by how you plan to start. Every number is sourced from FMCSA data, industry reports, and real carriers.

Your total depends on one decision: the truck

The biggest variable in your startup budget is how you get a truck. Everything else — formation, registration, insurance, compliance — falls within a predictable range. The truck decision is what separates a $28K startup from a $135K startup.

Most successful first-time owner-operators land in the mid-range.

Formation: the cheapest part ($50-$1,100)

Setting up your business entity and getting registered with the IRS and your state government is the cheapest part of the process. You need a business entity (most truckers form an LLC), an EIN from the IRS, and an operating agreement. The costs depend on your state’s filing fees and whether you do it yourself or hire someone.

You can have your LLC, EIN, and business bank account in a week for under $200 in most states.

Federal registration: under $400 if you do it yourself

You need a USDOT number, an MC operating authority number, a BOC-3 process agent (which designates a legal agent in every state), and UCR registration. All of these are filed online through the FMCSA. The forms are straightforward and filing services that charge $1,000-$2,500 for them are unnecessary.

Insurance: the number that shocks everyone ($12,000-$25,000/year)

Insurance is the single largest startup expense and the number that changes the most plans. New authorities face a 20-40% surcharge over established carriers because only 3-5 insurance companies will write you a policy. Here is what each coverage type costs.

New authorities pay 20-40% more than established carriers. Only 3-5 insurers write new authority policies. Premiums drop significantly after 1-2 clean years.

The down payment catches people off guard. On an $18,000 annual policy, that’s $2,700-$4,500 due before your authority activates. Day one, not day 30.

High-cost states (Florida, New Jersey, New York): expect $20,000-$35,000+ for a comprehensive package.

Compliance: $970-$5,250+

Compliance covers everything the federal government and your state require before you can legally operate: plates, permits, drug testing, an ELD, vehicle markings, and safety equipment. None of it is optional, and most of it is straightforward once you know the list.

Yes, you need drug testing as a solo owner-operator. 49 CFR 382 has no solo-operator exemption. Budget $99-$299/year.

The truck: the elephant in the room

How you get your first truck is the single biggest financial decision in the startup. Leasing, buying used, and buying new each have different risk profiles. The industry advice is nearly unanimous: lease or buy used for your first truck.

“Don’t buy a truck you love. Buy a truck that makes money. A used Cascadia at $45,000 earns the same per-mile rate as a new Pete 389 at $200,000.” — TruckersReport forum

Industry advice is nearly unanimous: lease or buy used. The extra $1,000-$1,500/month in new truck payments has killed more carriers than any freight recession.

Other equipment and operating costs

Operating reserves are where most failures happen

You need 3-6 months of operating expenses in cash, above and beyond everything listed above. This is the difference between surviving a bad month and closing the business.

Why: Brokers pay net-30 to net-45. You haul a load on March 1, you get paid April 1 at the earliest. Truck payment was due yesterday.

Why more: Breakdowns happen. Turbo replacement: $3,000-$5,000. Transmission rebuild: $5,000-$8,000. If your truck is down a week, you’ve lost $3,000-$5,000 in revenue AND paid $3,000-$8,000 in repairs. Without reserves, that single event ends your business.

At minimum, keep $15,000-$30,000 in cash above your startup costs.

The three scenarios, totaled

Lean: $28,000 - $50,000

Mid-Range: $50,000 - $85,000

Full: $90,000 - $135,000+

How to fund it

Savings. Ideal. No debt, no interest, no monthly obligation.

Equipment financing. 10-20% down, 4-7 year terms, 5-12% interest. The truck is collateral. Reasonable debt for a proven model.

SBA microloans. Up to $50,000 for new businesses. 8-13% interest. Fair terms, slow process.

Factoring (for cash flow, not startup). Sell invoices to a factoring company at 2-5% discount to get paid immediately instead of waiting 30-45 days. Most new carriers use it for the first year.

Avoid: Credit cards (18-28% APR on a 50% failure-rate business). Predatory lease-purchase programs (read the fine print). 401(k) withdrawals (terrible odds against compound growth).

Monthly operating budget after launch

Once you are running, here is what it costs to keep the truck moving. These are annual figures for a single-truck operation. Your cost-per-mile is the number that determines whether you make money or lose it.

Before you accept your first load, calculate your cost-per-mile. According to ATRI’s 2025 Operational Costs report, the industry average was $2.26/mile in 2024 (down 0.4% from 2023, but non-fuel costs hit a record high of $1.78/mile). Average contract rate in 2024: $2.09/mile — below cost. Know your number.

What this page does not include

• Your living expenses during ramp-up (rent, food, utilities, health insurance)
• Tax reserves beyond quarterly estimates
• Major repairs — a single breakdown can add $5,000-$10,000
• Trailer purchase if needed ($15,000-$45,000 used)

Plan for startup costs PLUS 3-6 months of personal living expenses. For most people, the total real capital needed is $40,000-$160,000.

It’s a lot. It’s also why the adequately-capitalized carriers are still operating five years later.