How to Start a Trucking Company (2026)

From business formation to getting your MC authority — every pre-authority step to launch a compliant trucking operation.

Business Formation

Before you apply for any FMCSA authority, you need a legal business entity. Here is how to set up the foundation:

• Choose your business structure — An LLC is recommended for most new carriers and brokers. It separates personal assets from business liabilities — critical in trucking where accident claims can be substantial. Sole proprietorships are simpler but expose your personal assets. Formation costs $50-$500 depending on your state.
• Get your EIN (Employer Identification Number) — Apply for free through the IRS website. You need this for tax filing, hiring employees, and opening a business bank account. Issued immediately online.
• Open a business bank account — Keep business and personal finances completely separate. You will need your EIN, LLC formation documents, and government-issued ID. A dedicated business account simplifies tax filing, IFTA reporting, and expense tracking.
• Get a business address — FMCSA requires a physical business address (not a PO Box) for your USDOT registration. If you operate from home, your home address works. This address becomes public record on SAFER.

FMCSA Registration

The FMCSA registration process establishes your legal right to operate as a carrier or broker in interstate commerce. Here are the required steps:

• USDOT number — Required for all commercial vehicles operating in interstate commerce. Apply through the FMCSA Unified Registration System. Fee is approximately $300. Processing takes 1-2 business days.
• MC authority (Motor Carrier or Broker) — MC-FF for carriers hauling freight, MC-B for brokers. Apply simultaneously with your USDOT number. Fee is approximately $300. After filing, there is a mandatory 10-day protest period before your authority is granted.
• BOC-3 filing (Blanket of Coverage) — Designates a process agent in every state you operate. Required before your authority becomes active. Use an FMCSA-approved BOC-3 agent. Costs $50-$200 as a one-time fee.
• UCR (Unified Carrier Registration) — Annual registration required for all interstate carriers and brokers. Fees are based on fleet size, starting at $76 for 0-2 vehicles. Register at UCR.gov.

Insurance Requirements

FMCSA mandates specific insurance minimums before your authority becomes active. Your insurance provider files Form BMC-91 or BMC-34 directly with FMCSA on your behalf:

• Primary liability — $750,000 minimum for general freight carriers. $1,000,000 for household goods. $5,000,000 for hazmat. This is the federal minimum — many shippers and brokers require $1,000,000 regardless.
• Cargo insurance — not federally required for carriers, but most brokers require $100,000 minimum cargo coverage before assigning loads. Brokers need a $75,000 surety bond or trust fund (BMC-84 or BMC-85).
• Physical damage — covers your truck and trailer against collision, theft, and weather damage. Not federally required but essential if you are financing or leasing equipment.
• Occupational accident insurance — covers medical expenses and lost wages for owner-operators who are not eligible for workers' compensation. Highly recommended for independent contractors.

Expect to pay $3,000-$15,000 as a down payment for your insurance package. Your SAFER record, driving history, and years of experience directly affect your premium rates.

Compliance Requirements

Beyond registration and insurance, FMCSA requires several ongoing compliance items. Missing any of these can result in fines, out-of-service orders, or authority revocation:

• Drug & alcohol testing program — Required for all CDL drivers. You must enroll in a DOT-compliant consortium that handles pre-employment, random, post-accident, reasonable suspicion, return-to-duty, and follow-up testing. Costs $50-$150 per driver per year.
• ELD (Electronic Logging Device) — Required for all CMVs in interstate commerce under the FMCSA ELD mandate. You will install your ELD after your authority is active — see our Post-Authority Checklist for ELD setup details.
• IFTA (International Fuel Tax Agreement) — Required for vehicles over 26,000 lbs or with 3+ axles operating in two or more jurisdictions. Apply through your base state. Quarterly fuel tax reporting is mandatory.
• IRP (International Registration Plan) — Apportioned registration for vehicles operating in multiple states. Apply through your base state DMV. Fees are prorated based on the percentage of miles driven in each jurisdiction.
• Driver Qualification Files (DQ files) — Maintain a DQ file for every driver including application, MVR (motor vehicle record), medical certificate, road test certificate, and annual review of driving record.

What Comes After Your Authority Is Active

Once your USDOT number and MC authority are granted, you still need to set up operational technology before your first dispatch. This includes ELD installation, loadboard signup, dispatch software, and accounting. We cover all of these in detail in our dedicated post-authority guide: