7 requirements for starting a freight company

By Jonathan Hartley, freelance writer.

There is no shortage of items that can be transported from one place to another. Shipping has never been more in demand, whether it’s due to the growth of online shopping, the lack of drivers, or changes in society as a whole. There was a slight drop earlier in the year, but demand is still high and there aren’t enough riders to meet it.

This is where you intervene. With a freight company, you can successfully fill some of these bottlenecks. However, it is always advisable to take the necessary measures to set things up properly. This way you can launch successfully and get started right away. The goal should be long-term growth, not just a successful launch, regardless of the type of business you are starting. In addition, you must comply with several laws and regulations when exporting. Below are seven requirements for starting a freight company.

Create a business plan

Every profitable business venture begins with a plan. First, you must state your goals and the methods you intend to use to achieve them. This strategy should list all future expenses and expected income. For example, how will your company handle marketing? How many employees are required? Which target group do your products serve? To create a thorough plan for success, make sure you address each of these questions. This strategy supports your startup as well as your transition into the demanding world of corporate management. It also ensures that you don’t overextend yourself financially and demonstrates the viability of your business to potential investors and lenders.

A legal person

You have a variety of business structure options for your new trucking company. Many people choose an LLC. Regardless of which option you choose, it is beneficial to keep your personal assets and finances separate from those of your business. If the company is struggling to pay its debts, your personal belongings cannot be considered. By separating, you can ensure that your savings or other assets, such as your home, are never at risk. There are also tax and legal advantages. In addition, your business credit is not affected by the condition of your personal credit. You must register your trucking company as a legal entity in order to apply for the necessary permits and licenses.

Licenses and Permissions

Meeting various licensing and permitting requirements is a prerequisite to owning a trucking company. Make sure you have everything, as your federal, state, or local agency may have different requirements. In addition, fines or other sanctions may be imposed on you if you do not comply with the regulations. For example, you need a commercial driver’s license (CDL) to drive. In addition, the FMCSA will issue your company with a USDOT number so that it can be identified during audits and investigations. Depending on the type of goods you are shipping, you may need special permits, including those for transporting medical waste. After all, you need permits and licenses from other nations to do business abroad.


For the actual vehicles themselves, insurance is essential and crucial. You need commercial auto insurance to protect your fleet, just like you would your own car. However, in order to have a business, you must have multiple forms of coverage. You need business liability, business liability and commercial property insurance. Product liability insurance is a cover that is sometimes neglected. Product liability can supplement general liability insurance and protects against financial loss if a customer or a public person is injured or damaged by a product. Make sure you are protected as shipping companies often sell packaging material. Otherwise, you could be the subject of a lawsuit – or numerous lawsuits – that could bankrupt you.


Investing in the right equipment is critical to the success of your business. For example, you need transportation to ship the type of goods you will handle effectively. Therefore, in addition to the size, you must also consider the capabilities of the vehicles. For example, do you transport fresh or frozen food? Then you need vehicles that can regulate their temperature. Depending on the type and size of your business, you may also want a reliable forklift and racking. You also need to decide whether buying or renting the items you want makes more sense. That probably depends on how much money you have upfront.

loads to ship

Your business won’t be very significant if you don’t have loads to move. It would be best if you make an effort to get customers and start shipping cargo. There are numerous methods to do this. One option is to use online charging boards. The companies enter the freight to be transported here and request offers. If you outbid your competitors, the job is yours. You can create a network to collaborate with other nearby businesses in your neighborhood and area. Marketing will no doubt play an important role in your endeavors. You can stick with a lower-cost digital plan, or use full-blown mass marketing methods like social media and SEO


Obtaining the appropriate licenses and permits before starting your business is one thing. Maintaining compliance for the duration of your freight business is another matter. This requires you to file your taxes on time, which can be quarterly. Your CDL must also be renewed. Failure to do so can result in significant penalties and potentially the loss of some of your licenses and permissions. Never assume that you can violate any local, state or federal law. You will learn that ultimately you will be exposed and the outcome will not be favorable.

Perhaps there will never be a better opportunity to start a cargo business. So many jobs are open and if you play your cards well you can have great success. A perfect storm for someone with the know-how to move things from place to place quickly was created by the rise of online shopping and the need for brick and mortar facilities to remain competitive and accessible in the market. But you can’t just buy a truck, load it up, and become successful. Be sure to consider all aspects to ensure your new freight company has a solid start and can continue to expand.

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