Complete Guide to Starting a Trucking Business: From CDL to Owner Operator (2025)

Quick Answer

Two main paths into trucking:

Path 1: Company Driver

• Get your CDL (Commercial Driver's License) and Class A license
• Drive for a trucking company
• Average salary: $45,000–$70,000/year depending on experience and route type
• No business startup costs, steady paycheck

Path 2: Owner Operator

• Get your CDL and Class A license first
• Obtain your MC number (Motor Carrier Authority) and DOT number
• Buy or lease your own truck (box truck or semi)
• Average income after expenses: $50,000–$100,000+/year
• Requires startup capital and business management

This guide covers both paths in detail, including step-by-step instructions, real salary data, and funding options for 2025.

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Path 1: Becoming a Company Truck Driver

Starting as a company driver is the most common entry point into trucking. You'll drive for an established carrier, earn a steady paycheck, and gain valuable experience before potentially becoming an owner operator.

What Does CDL Stand For?

CDL stands for Commercial Driver's License.

A CDL is a specialized driver's license required by the Federal Motor Carrier Safety Administration (FMCSA) to operate commercial motor vehicles (CMVs) in the United States. This includes:

• Semi-trucks (tractor-trailers)
• Box trucks over 26,001 pounds
• Buses
• Vehicles carrying hazardous materials
• Vehicles designed to transport 16+ passengers

There are three classes of CDL:

1. Class A CDL - Required for combination vehicles (tractor-trailer) with a gross combination weight rating (GCWR) of 26,001+ pounds, where the towed vehicle weighs 10,001+ pounds
2. Class B CDL - Required for single vehicles over 26,001 pounds (like dump trucks, delivery trucks, buses)
3. Class C CDL - Required for vehicles carrying hazmat or 16+ passengers that don't meet Class A or B requirements

Most over-the-road trucking jobs require a Class A CDL.

What is a Class A License?

A Class A license is the highest level of Commercial Driver's License (CDL), allowing you to operate the widest range of commercial vehicles.

With a Class A CDL, you can drive:

• Tractor-trailers (18-wheelers/semi-trucks)
• Truck and trailer combinations
• Tanker vehicles
• Flatbeds
• Livestock carriers
• Refrigerated trailers (reefers)
• Any vehicle that a Class B or C license holder can drive

Why most truckers get a Class A license:

• Opens the most job opportunities
• Highest earning potential
• Required for long-haul trucking
• Can haul most freight types
• Provides career flexibility

Class A CDL requirements:

• Must be at least 21 years old (18 for intrastate only)
• Valid regular driver's license
• Pass DOT medical exam
• Pass written knowledge tests
• Pass skills test (pre-trip inspection, basic controls, road test)
• Clean driving record (standards vary by state and employer)

How to Become a Truck Driver (Step-by-Step)

Step 1: Meet basic requirements

• Be at least 21 years old (18 for intrastate)
• Have a valid driver's license
• Have a clean driving record
• Pass a DOT physical exam
• Be able to read and speak English

Step 2: Choose your CDL training path

Option A: CDL Training School ($3,000–$7,000, 3-8 weeks)

• Attend a private CDL school
• Comprehensive training (classroom + behind-the-wheel)
• Faster completion
• You pay upfront (or finance training)
• No employment obligation

Option B: Company-Sponsored CDL Training (Free or low-cost, 3-6 weeks)

• Major carriers (Swift, Werner, Schneider, Prime, etc.) offer free or subsidized training
• You commit to working for them for 6-12 months
• Receive stipend during training
• Lower upfront cost
• Built-in job placement

Option C: Community College CDL Programs ($1,500–$5,000, 4-8 weeks)

• Often eligible for financial aid
• Structured curriculum
• May take longer to complete
• Good quality instruction

Step 3: Obtain your CDL learner's permit

• Study your state's CDL manual
• Pass the general knowledge written test
• Pass endorsement tests if needed (e.g., air brakes, combination vehicles)
• Pay permit fee ($15–$50 depending on state)

Step 4: Complete CDL training

• Classroom instruction (traffic laws, safety regulations, logbook rules)
• Behind-the-wheel training (minimum 40-80 hours)
• Practice pre-trip inspections
• Learn backing, coupling/uncoupling, shifting

Step 5: Pass the CDL skills test

Three parts:

1. Pre-trip inspection - Demonstrate knowledge of your vehicle
2. Basic controls test - Backing, parking, alley dock
3. Road test - Drive in various traffic conditions

Passing scores: Varies by state, typically 80%+ required

Step 6: Get your Class A CDL

• Receive your physical CDL card
• Typically valid for 5-8 years
• Must maintain DOT medical certification (renewed every 1-2 years)

Step 7: Apply for truck driving jobs

• Entry-level driver positions at major carriers
• Regional, OTR (over-the-road), or local routes
• Many companies hire new CDL graduates
• Starting pay: $45,000–$55,000/year

Total timeline: 3-8 weeks for training + testing Total cost: $0–$7,000 depending on training path

How Much Do Truck Drivers Make?

Truck driver salaries vary widely based on experience, route type, freight type, and employment model. Here's the breakdown for 2025.

Company Truck Driver Salary (Employed by a Carrier)

Average Annual Salary Ranges:

Entry-Level Drivers (0-1 year experience):

• $45,000–$55,000/year
• $0.35–$0.45 per mile (if paid by mile)
• Starting at ~$22–$27/hour (if paid hourly)

Experienced Drivers (2-5 years):

• $55,000–$70,000/year
• $0.45–$0.60 per mile
• $27–$35/hour

Specialized/Veteran Drivers (5+ years):

• $70,000–$85,000/year
• $0.60–$0.75+ per mile
• $35–$42/hour

Salary by Route Type:

How Truck Drivers Are Paid:

Per-Mile Pay (Most Common)

• Paid for every loaded mile driven
• Average: $0.40–$0.65/mile depending on experience
• Empty miles (deadhead) may pay less or nothing
• Must drive 2,000–3,000 miles/week to earn well

Hourly Pay

• Common for local/regional drivers
• Average: $22–$38/hour
• Overtime eligible (over 40 hours/week)
• More predictable weekly income

Salary Pay

• Less common for drivers
• Predictable income regardless of miles
• May include performance bonuses

Additional Pay Components:

• Detention pay: $15–$25/hour after 2-3 hours at shipper/receiver
• Layover pay: $50–$100/day if stuck waiting for load
• Stop pay: $25–$75 per additional stop
• Fuel bonuses: Incentive for fuel efficiency
• Safety bonuses: Clean inspection/accident record rewards
• Sign-on bonuses: $2,000–$10,000+ for experienced drivers

How Much Do CDL Drivers Make? (Summary)

Quick salary overview for CDL drivers:

• Entry-level: $45,000–$55,000/year
• Experienced (3-5 years): $55,000–$70,000/year
• Veteran (5+ years): $70,000–$85,000/year
• Specialized (tanker, hazmat, team): $65,000–$90,000+/year

Factors that increase pay:

• More years of experience
• Clean safety record
• Endorsements (tanker, hazmat, doubles/triples)
• Willingness to be on the road longer (OTR)
• Specialized freight (refrigerated, oversized, hazmat)
• Team driving
• Working for higher-paying carriers

Benefits beyond salary:

• Health insurance (medical, dental, vision)
• 401(k) retirement plans (often with company match)
• Paid time off (1-2 weeks to start)
• Per diem allowances for meals
• Rider programs (bring family member)
• Tuition reimbursement

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Path 2: Starting Your Own Trucking Business

After gaining experience as a company driver (or if you have business experience and capital), you can start your own trucking operation as an owner operator or small fleet owner.

Box Truck Business vs. Semi Truck Business

Two main business models for trucking:

Box Truck Business (Straight Truck/Non-CDL or CDL Class B)

Vehicle: Single-unit truck with cargo box attached (10–26 feet long)

Best for:

• Local delivery, last-mile logistics
• Moving companies
• Furniture/appliance delivery
• Courier services
• Expedited freight

Startup costs: $25,000–$150,000

• Used box truck: $15,000–$50,000
• New box truck: $50,000–$150,000
• Lower insurance costs
• Less expensive maintenance

License requirements:

• Under 26,001 lbs: Regular driver's license
• Over 26,001 lbs: Class B CDL required
• Must still get MC/DOT number for interstate commerce

Pros:

• Lower startup cost
• Easier to find local work
• Home every night
• Simpler to operate
• Lower insurance costs

Cons:

• Lower revenue per load ($300–$1,500 vs. $1,500–$5,000 for semi)
• Limited to lighter freight
• More competition in local markets
• Lower profit margins

Average revenue: $100,000–$200,000/year gross Average net profit after expenses: $40,000–$80,000/year

Semi Truck Business (Class A Tractor-Trailer)

Vehicle: Tractor (cab) that pulls various trailers (dry van, flatbed, reefer)

Best for:

• Long-haul freight
• Regional routes
• Dedicated lanes
• High-volume shippers
• Nationwide freight networks

Startup costs: $100,000–$250,000+

• Used semi truck: $30,000–$80,000
• New semi truck: $120,000–$180,000
• Trailer: $15,000–$50,000 (used) or $30,000–$60,000 (new)
• Higher insurance costs ($8,000–$15,000+/year)
• More expensive maintenance

License requirements:

• Class A CDL required
• MC/DOT number required for interstate

Pros:

• Higher revenue per load
• Access to nationwide freight
• More freight options
• Higher profit potential
• Better resale value

Cons:

• Higher startup costs
• More time away from home
• More complex operations
• Higher insurance and fuel costs
• Requires more experience

Average revenue: $150,000–$250,000+/year gross Average net profit after expenses: $50,000–$100,000+/year

How to Start a Box Truck Business (Step-by-Step)

Step 1: Get your license

• Regular driver's license for trucks under 26,001 lbs
• Class B CDL for trucks over 26,001 lbs
• If hauling hazmat or 16+ passengers: Additional endorsements

Step 2: Create a business plan

• Define your niche (delivery, moving, courier, freight)
• Research local demand and competition
• Project revenue and expenses
• Determine funding needs

Step 3: Register your business

• Choose business structure (LLC, Corporation, Sole Proprietorship)
• Register with your state
• Get an EIN (Employer Identification Number) from IRS
• Open business bank account

Cost: $50–$500 depending on state and structure

Step 4: Get your DOT and MC numbers

DOT Number (Required for all commercial vehicles in interstate commerce):

• Register at fmcsa.dot.gov
• Costs $300
• Allows FMCSA to track your safety record
• Required even for box trucks under 26,001 lbs if crossing state lines

MC Number (Motor Carrier Number):

• Also called Operating Authority
• Allows you to operate as a for-hire carrier
• Costs $300
• Takes 10-20 business days to process
• Required to legally haul freight for hire in interstate commerce

Total cost: $600 + filing fees

See detailed MC/DOT application process below

Step 5: Get insurance

Required coverage:

• Commercial auto liability: $750,000–$1,000,000 minimum
• Cargo insurance: $25,000–$100,000
• General liability: $1,000,000
• Physical damage: Coverage for your truck

Cost: $5,000–$12,000/year for box trucks

Step 6: Buy or lease your box truck

Used box truck: $15,000–$50,000 New box truck: $50,000–$150,000

Financing options:

• Commercial truck loans (10-20% down, 3-7 year terms)
• Lease-to-own programs
• Equipment financing
• Business loans

Step 7: Set up operations

• ELD (Electronic Logging Device) if required
• Dispatch/load board subscriptions (DAT, Truckstop, Sylectus)
• Accounting software
• Fuel cards
• Maintenance tracking

Step 8: Find customers

• Sign up with freight brokers
• Use load boards
• Build direct shipper relationships
• Network with local businesses
• Market your services online

Total startup cost for box truck business: $30,000–$180,000

Timeline: 2-4 months from planning to first load

How to Start a Trucking Company with Semi Trucks

Step 1: Get your Class A CDL

• Follow the CDL process outlined earlier
• Gain 1-2 years of experience as a company driver (highly recommended)
• Build clean safety record

Step 2: Gain experience as a company driver (Recommended)

Most successful owner operators drive for a company first:

• Learn the industry without business risk
• Build your safety record
• Understand routes, freight types, brokers
• Save money for startup costs
• Network with brokers and shippers

Recommended experience: 1-2 years minimum

Step 3: Create detailed business plan

Your plan should include:

• Business model: Owner operator, small fleet, specialized freight?
• Target lanes: What routes will you run?
• Revenue projections: Based on realistic rates and mileage
• Expense forecast: Truck payment, fuel, insurance, maintenance, etc.
• Funding needs: How much capital do you need?
• Growth plan: Stay solo or hire drivers?

Step 4: Register your business entity

• Choose structure (LLC recommended for liability protection)
• Register with your state ($50–$500)
• Get EIN from IRS (free)
• Open business bank account

Step 5: Obtain MC and DOT numbers

See detailed process in next section

Step 6: Secure insurance

Required commercial trucking insurance:

Primary liability: $750,000–$1,000,000 minimum

• Many brokers require $1,000,000
• Required by FMCSA

Cargo insurance: $100,000 minimum

• Covers damage to freight you're hauling
• Many shippers require higher limits

Physical damage: Covers your truck and trailer

• Collision coverage
• Comprehensive coverage

Non-trucking liability: Covers truck when not under dispatch

Occupational accident insurance: If you have no employees

Workers' compensation: If you hire drivers

General liability: $1,000,000+ recommended

Total insurance cost: $12,000–$20,000+/year for one truck

Step 7: Buy or lease your truck and trailer

Purchase options:

New semi truck: $120,000–$180,000

• Pros: Warranty, reliability, fuel efficiency, lower maintenance
• Cons: High upfront cost, depreciation

Used semi truck: $30,000–$80,000

• Pros: Lower cost, slower depreciation
• Cons: Higher maintenance, potential downtime, no warranty

Trailer: $15,000–$60,000 depending on type and condition

Financing options:

• Owner operator truck loans: 10-20% down, 3-7 year terms, 5-12% interest
• Lease-purchase programs: Through carriers, path to ownership
• Equipment financing: Secured by the truck
• Business term loans: Unsecured or secured by business assets

Step 8: Set up operational systems

Technology:

• ELD (Electronic Logging Device) - Required by law
• Dispatch software or load board access (DAT, Truckstop)
• Fuel card programs (discounts + tracking)
• Accounting software (QuickBooks, FreshBooks)
• GPS and fleet management

Administrative:

• IFTA (International Fuel Tax Agreement) license
• IRP (International Registration Plan) registration
• UCR (Unified Carrier Registration)
• BOC-3 process agent (designate agent in each state)

Step 9: Build your freight network

Find loads through:

• Freight brokers: Sign up with multiple brokers, build relationships
• Load boards: DAT, Truckstop, direct freight
• Direct shippers: Reach out to manufacturers, distributors
• Dedicated contracts: Negotiate recurring routes with shippers
• TACH Partners: Access vetted broker network with priority rates

Step 10: Launch and manage your operation

First 90 days focus:

• Book profitable loads
• Track every expense
• Build broker relationships
• Maintain truck meticulously
• Monitor cash flow closely
• Market your services

Total startup cost for semi truck business: $100,000–$250,000+

Timeline: 3-6 months from planning to first load

How to Get Your MC Number and DOT Number

Your MC number (Motor Carrier number) and DOT number are federal registrations required to operate a trucking business legally.

What is an MC Number?

MC Number (Motor Carrier Number) is your Operating Authority issued by the Federal Motor Carrier Safety Administration (FMCSA).

What it allows you to do:

• Operate as a for-hire carrier (haul freight for customers)
• Transport goods across state lines (interstate commerce)
• Contract with brokers and shippers
• Legally collect payment for freight services

Who needs an MC number:

• Any person or company that transports goods for hire in interstate commerce
• Owner operators
• Trucking companies
• Box truck businesses hauling freight across state lines

You do NOT need an MC number if:

• You only haul your own goods (private carriage)
• You only operate within one state (intrastate) and your state doesn't require it
• You lease onto a carrier who provides the authority

What is a DOT Number?

DOT Number is your unique identifier assigned by the FMCSA to track your company's safety record and compliance.

Who needs a DOT number:

• Vehicles over 10,001 lbs operating in interstate commerce
• Vehicles transporting hazardous materials
• Vehicles designed to transport 9+ passengers for compensation or 16+ passengers total

What it's used for:

• Track safety inspections, crashes, audits
• Compliance reviews
• Required for roadside inspections
• Linked to your CSA (Compliance, Safety, Accountability) scores

How to Get Your MC and DOT Number (Step-by-Step)

Step 1: Gather required information

Before starting your application, have ready:

• Business legal name and structure (LLC, Corp, etc.)
• Business address (cannot be a PO Box)
• EIN (Employer Identification Number)
• USDOT PIN (you'll create this during registration)
• Vehicle information (type, weight, quantity)
• Operating radius (interstate, intrastate, or both)
• Cargo types you'll haul
• Business contact information

Step 2: Register for USDOT Number

Go to: https://www.fmcsa.dot.gov/registration

Or use the Unified Registration System (URS):

• More user-friendly
• Allows you to complete DOT and MC registration in one process

Complete the application:

• Provide business details
• Vehicle information
• Insurance information
• Safety contacts
• Cargo information

Cost: $300 for USDOT registration

Processing time: Instant for DOT number

Step 3: Apply for MC Number (Operating Authority)

During the same registration process:

• Select "Motor Carrier" authority
• Choose "For-Hire" or "Private" (most choose For-Hire)
• Select cargo types you'll transport

Cost: $300 for MC Number registration

Processing time: 10-20 business days

You'll receive:

• MC number (e.g., MC-123456)
• Notice of application filing
• Pending authority status

Step 4: Designate BOC-3 Process Agents

BOC-3 (Blanket of Coverage): Legal requirement to designate agents in every state where you operate to accept legal documents on your behalf.

How to file:

• Use BOC-3 service provider ($30–$50/year)
• Services like BOC-3.com, LegalProcessingService.com
• They file electronically with FMCSA
• Covers all 50 states + DC

Cost: $30–$100 depending on provider

Must be filed before your MC number becomes active

Step 5: Obtain insurance and file BMC-91

Get required insurance:

• Primary liability: $750,000–$1,000,000
• Cargo insurance: $100,000 minimum

File proof of insurance (BMC-91):

• Your insurance company files Form BMC-91 with FMCSA
• This is your "insurance filing"
• Must be on file before authority activates
• Costs $0 (your insurer handles this)

Step 6: Pay Unified Carrier Registration (UCR)

UCR fee: Annual fee based on fleet size

• 0-2 vehicles: ~$76/year
• 3-5 vehicles: ~$230/year
• Varies by state

Register at: https://www.ucr.gov

Step 7: Wait for authority to become active

Timeline:

• DOT number: Active immediately
• MC number: 20-day waiting period (protest period)
• If no protests filed: Authority goes active automatically
• You'll receive confirmation via mail and online

Check status: https://safer.fmcsa.dot.gov

Step 8: Complete additional state registrations

IFTA (International Fuel Tax Agreement):

• Required if you operate in multiple states
• Register with your base state
• Quarterly fuel tax reporting
• Cost: ~$10 registration

IRP (International Registration Plan):

• Required for interstate vehicles over 26,000 lbs
• Apportioned registration across states
• Register with your base state
• Cost: Varies by states traveled and vehicle weight

Intrastate permits:

• May be required by individual states
• Check with your state's DOT/DMV

Total Cost to Get MC and DOT Number

Federal fees:

• USDOT Number: $300
• MC Number: $300
• BOC-3 filing: $30–$100
• UCR registration: $76+
• Total: ~$706–$776

Insurance (annual):

• Semi truck: $12,000–$20,000/year
• Box truck: $5,000–$12,000/year

State registrations:

• IFTA: ~$10
• IRP: Varies ($500–$3,000+ depending on operations)

Total first-year cost (including insurance): $13,000–$23,000+ depending on vehicle type

How Long Does It Take to Get MC and DOT Numbers?

USDOT Number: Issued immediately upon application approval

MC Number:

• Application processed in 10-20 business days
• 20-day protest period (federally mandated waiting period)
• Active authority typically 3-4 weeks from filing

Total timeline: 3-4 weeks for active operating authority

Pro tip: You can purchase your truck and complete training while waiting for your MC number to become active.

Owner Operator Trucking Salary After Expenses

Owner operators have significantly higher revenue potential than company drivers, but also bear all business expenses. Here's what you can realistically expect to earn.

Gross Revenue (Before Expenses)

Average revenue per truck per year:

Solo owner operator (one driver, one truck):

• Revenue: $150,000–$250,000/year
• Average: $180,000/year
• Based on: 2,000–3,000 miles/week at $1.80–$2.50/mile all-in rate

Team operation (two drivers, one truck):

• Revenue: $250,000–$350,000+/year
• Truck runs nearly 24/7
• Higher mileage, higher revenue

Small fleet (2-5 trucks with hired drivers):

• Revenue per truck: $150,000–$220,000/year
• Net per truck after driver pay: $40,000–$80,000/year

Operating Expenses (Annual)

Here's where your revenue goes:

Fixed costs (regardless of miles driven):

• Truck payment/lease: $18,000–$30,000/year ($1,500–$2,500/month)
• Insurance: $12,000–$20,000/year
• Permits & registrations: $2,000–$5,000/year (IFTA, IRP, UCR, permits)
• Total fixed costs: $32,000–$55,000/year

Variable costs (based on mileage):

• Fuel: $50,000–$75,000/year (largest expense, ~$0.40–$0.60/mile)
• Maintenance & repairs: $15,000–$25,000/year ($0.12–$0.20/mile)
• Tires: $4,000–$8,000/year ($0.03–$0.06/mile)
• Total variable costs: $69,000–$108,000/year

Administrative & other costs:

• Factoring fees: $3,000–$9,000/year (if you factor invoices)
• Load board subscriptions: $500–$1,500/year
• ELD & software: $500–$1,200/year
• Accounting & bookkeeping: $1,000–$3,000/year
• Communication (phone, internet): $1,200–$2,000/year
• Scales, tolls, parking: $2,000–$5,000/year
• Total admin costs: $8,200–$21,700/year

Total annual operating expenses: $109,200–$184,700/year

Note: These are averages. Your actual costs will vary based on miles driven, fuel prices, truck age, maintenance needs, and operational efficiency.

Net Income (After Expenses)

Solo owner operator take-home:

Conservative scenario:

• Gross revenue: $150,000/year
• Operating expenses: $130,000/year
• Net income: $20,000/year (not sustainable)

Average scenario:

• Gross revenue: $180,000/year
• Operating expenses: $120,000/year
• Net income: $60,000/year

Strong scenario:

• Gross revenue: $220,000/year
• Operating expenses: $135,000/year
• Net income: $85,000/year

Excellent scenario (experienced operator, optimized operations):

• Gross revenue: $250,000/year
• Operating expenses: $145,000/year
• Net income: $105,000/year

Realistic owner operator salary after expenses: $50,000–$100,000/year

Owner Operator Salary vs. Company Driver Salary

Company driver total compensation:

• Salary: $55,000–$75,000/year
• Benefits: Health insurance, 401(k), paid time off (~$10,000–$15,000 value)
• Total comp: $65,000–$90,000/year
• No business risk, predictable income

Owner operator:

• Net income: $50,000–$100,000/year
• Must purchase own health insurance ($5,000–$12,000/year)
• No paid time off, no employer 401(k)
• Business risk: unexpected repairs, market downturns
• Take-home after benefits: $38,000–$95,000/year

The owner operator advantage:

• Higher earning ceiling (top performers earn $100,000–$150,000+)
• Control over schedule and routes
• Build equity in business/equipment
• Tax deductions reduce taxable income
• Potential to grow into small fleet

The company driver advantage:

• Predictable paycheck
• No business expenses or risk
• Health insurance and benefits
• Paid time off
• No equipment breakdown stress

Key Factors That Determine Owner Operator Profitability

What separates $50k earners from $100k+ earners:

✓ Lane selection - Running profitable, repeatable lanes ✓ Rate discipline - Not hauling cheap freight, knowing your costs ✓ Low deadhead - Minimizing empty miles (under 10%) ✓ Equipment reliability - Maintaining truck to prevent breakdowns ✓ Fuel management - Optimizing fuel efficiency and purchase locations ✓ Broker relationships - Working with reliable, high-paying partners ✓ Time management - Maximizing loaded miles, minimizing dwell time ✓ Financial discipline - Tracking expenses, setting aside reserves ✓ Business skills - Negotiation, accounting, strategic planning

New owner operators often struggle the first 1-2 years learning these skills. Experienced operators who've mastered the business side consistently earn $80,000–$120,000+/year.

Trucking Industry Funding Needs & Options

Starting or growing a trucking business requires significant capital. Here's what you need to know about funding your operation.

Startup Funding Requirements

Box truck business startup costs:

• Vehicle: $15,000–$150,000
• Insurance: $5,000–$12,000 (first year)
• MC/DOT registration: $700–$1,000
• Operating capital: $5,000–$10,000 (fuel, first month expenses)
• Total: $25,000–$175,000

Semi truck business startup costs:

• Truck: $30,000–$180,000
• Trailer: $15,000–$60,000
• Insurance: $12,000–$20,000 (first year)
• MC/DOT registration: $700–$1,000
• Operating capital: $10,000–$20,000
• Total: $70,000–$280,000

Many new owner operators start with $50,000–$150,000 in capital or financing.

Owner Operator Funding Options

1. Traditional Commercial Truck Loans

Terms:

• 10-20% down payment required
• 3-7 year loan terms
• 5-12% interest rates
• Monthly payments: $800–$2,500

Best for: Purchasing trucks with decent credit (650+ credit score)

Pros: Build equity, own the truck Cons: Large down payment, strict qualification requirements

2. Lease-Purchase Programs (Through Carriers)

Terms:

• Little to no money down
• Lease payments deducted from weekly settlements
• 2-4 year path to ownership
• Higher total cost than purchasing

Best for: New drivers with limited capital who want to learn while leasing

Pros: No down payment, training included, path to ownership Cons: Higher total cost, tied to one carrier, aggressive payment terms

3. Equipment Financing

Terms:

• Equipment secures the loan
• 10-25% down payment
• 2-5 year terms
• Faster approval than traditional loans

Best for: Purchasing specific trucks or trailers

Pros: Easier approval, equipment is collateral Cons: Higher interest rates, shorter terms

4. Business Lines of Credit

Terms:

• $10,000–$100,000 credit lines
• Draw as needed, pay interest only on amount used
• Flexible repayment

Best for: Operating capital, fuel, repairs, cash flow gaps

Pros: Flexible, only pay for what you use Cons: Requires established business, good credit

5. Invoice Factoring

Terms:

• Sell unpaid invoices to factoring company
• Receive 90-98% of invoice value immediately
• Pay 1-5% factoring fee
• Factoring company collects from broker/shipper

Best for: Cash flow management, avoiding payment delays

Pros: Fast access to cash, no debt, credit not required Cons: Ongoing fees, less profit per load

6. Small Business Administration (SBA) Loans

Terms:

• SBA 7(a) loans: Up to $5 million
• 10% down payment
• 10-25 year terms
• Government-backed, lower interest rates

Best for: Established operators expanding fleets

Pros: Low down payment, long terms, competitive rates Cons: Slow approval (2-3 months), extensive documentation

7. Personal Savings & Assets

Terms:

• No debt, no interest
• Full ownership immediately

Best for: Those with savings or who can sell assets

Pros: No debt, no monthly payments, full control Cons: Ties up personal capital, higher risk

8. Friends & Family Loans

Terms:

• Flexible, negotiable terms
• Lower or no interest

Best for: Those with supportive network willing to invest

Pros: Flexible terms, relationship-based Cons: Risk to personal relationships, less formal

9. TACH Cash Advances

Terms:

• Fast funding for TACH members
• Based on current operations and revenue
• Flexible repayment aligned with cash flow
• No traditional credit score requirements

Best for: TACH members needing operating capital to cover expensive truck or trailer repairs

Pros: Fast approval, flexible terms, no hard credit pull Cons: Available to TACH members only

Typical Funding Strategy for New Owner Operators

Most successful owner operators combine funding sources:

Example 1: Experienced driver transitioning to owner operator

• Personal savings: $15,000 (down payment)
• Truck loan: $45,000 (used truck)
• Line of credit: $10,000 (operating capital)
• Invoice factoring: Ongoing (cash flow management)
• Total: $70,000 business start

Example 2: Lease-purchase path

• Carrier lease-purchase program: $0 down
• Start driving immediately
• Build capital over 2-3 years
• Transition to ownership with savings

Example 3: Well-capitalized start

• Personal savings: $50,000
• Truck loan: $80,000 (newer truck)
• Business line of credit: $20,000
• Total: $150,000 business start

Ongoing Working Capital Needs

Beyond startup costs, you need cash reserves for:

• Fuel: Must prepay at pump ($300–$600/fillup)
• Maintenance: Sudden repairs ($2,000–$10,000)
• Payment delays: Brokers pay Net 15-30 (or longer)
• Slow seasons: Winter/holiday slowdowns
• Insurance renewals: Annual lump sum payments

Recommended working capital reserve: $10,000–$25,000 to avoid cash flow crunches

How TACH Helps with Trucking Business Funding

TACH members get access to:

✓ Cash advances - Fast funding for repairs ✓ Expense management - Track costs, optimize spending ✓ Tire discounts - Save nationwide on Bridgestone tires from authorized dealers ✓ Truck rentals - Easy-access truck rentals via Penske & Ryder ✓ Truck analytics & performance metrics - CFO-level financial tools and analytics ✓ 24/7 Emergency Roadside Assistance - Assistance when you need it most, from Fleetnet

Join TACH to access funding options designed for owner operators.

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Company Driver vs. Owner Operator: Which Path is Right?

Choose Company Driver if:

✓ You want predictable income and benefits ✓ You don't want business management responsibilities ✓ You have limited startup capital (under $20,000) ✓ You prefer someone else handles truck maintenance ✓ You want to focus only on driving ✓ You value paid time off and health insurance ✓ You're new to trucking and want to learn the industry ✓ You don't want business risk

Company driver is best for: New drivers, those who value stability, people who don't want to manage a business

Choose Owner Operator if:

✓ You want higher earning potential ($80,000–$120,000+) ✓ You have business management skills or want to learn ✓ You have startup capital or can secure financing ($50,000+) ✓ You want control over your schedule and routes ✓ You're willing to handle admin, accounting, maintenance ✓ You want to build a business and equity ✓ You have 1-2 years of driving experience ✓ You're comfortable with income variability and business risk

Owner operator is best for: Experienced drivers, entrepreneurial mindset, those with capital or access to financing, people who want control

The hybrid path (recommended):

1. Year 1-2: Drive for a company

   • Get paid to learn the industry
   • Build clean safety record
   • Save $30,000–$50,000 for startup
   • Network with brokers and shippers
   • Research markets and lanes

2. Year 2-3: Become owner operator

   • Launch with experience and capital
   • Better positioned to succeed
   • Established industry relationships
   • Proven track record

Success rates:

• Drivers who start as owner operators immediately: 30-40% still operating after 3 years
• Drivers who gain experience first: 60-70% still operating after 3 years

Most successful owner operators drove for companies first.

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Common Mistakes When Starting a Trucking Business

Avoid these costly mistakes that sink many new trucking businesses:

❌ Mistake #1: Starting without experience

The problem: Trying to run a business while learning to drive and navigate the industry

The fix: Drive for a company 1-2 years first. Learn routes, freight types, brokers, and operational realities before risking your capital.

❌ Mistake #2: Underestimating startup costs

The problem: Only accounting for truck purchase, forgetting insurance, permits, working capital

The fix: Budget for the full picture:

• Truck + trailer
• Insurance (first year upfront)
• All registrations and permits
• 3-6 months operating capital
• Emergency repair fund

Minimum recommended capital: $50,000–$80,000 for semi truck business

❌ Mistake #3: Buying the wrong truck

The problem: Purchasing a cheap, high-mileage truck that breaks down constantly

The fix:

• Buy from reputable dealers with inspection reports
• Budget for higher quality (500,000–700,000 miles max)
• Get pre-purchase inspection (costs $200–$500, saves thousands)
• Consider certified pre-owned programs

Rule of thumb: Every $10,000 you save on a cheap truck = $15,000–$30,000 in repairs and downtime

❌ Mistake #4: Hauling cheap freight

The problem: Accepting any load at any rate just to keep moving

The fix:

• Calculate your true cost per mile
• Set minimum rate requirements ($0.35–$0.50 above your CPM)
• Say no to freight below your threshold
• Build relationships with brokers who pay fair rates

One cheap load won't kill you. Habitually hauling cheap freight will.

❌ Mistake #5: No cash reserves

The problem: Living load-to-load with no buffer for repairs, slow seasons, or payment delays

The fix:

• Build 3-6 months expense reserve ($15,000–$30,000)
• Use invoice factoring for consistent cash flow
• Don't withdraw all profits—reinvest in reserves
• TACH members: Use Cash Advance feature for emergency capital

❌ Mistake #6: Poor bookkeeping

The problem: Not tracking expenses, missing tax deductions, no financial visibility

The fix:

• Use accounting software (QuickBooks, FreshBooks)
• Track EVERY expense (fuel, maintenance, meals, tolls)
• Separate business and personal finances
• Hire bookkeeper or accountant ($100–$300/month)
• Review profit/loss monthly

Without good books, you can't make good decisions.

❌ Mistake #7: Ignoring maintenance

The problem: Skipping preventive maintenance to save money, leading to catastrophic breakdowns

The fix:

• Follow manufacturer maintenance schedule religiously
• Budget $0.12–$0.20/mile for maintenance
• Set aside $200–$500/month in maintenance fund
• Fix small problems before they become big problems
• Pre-trip inspection every single day

$2,000 in preventive maintenance prevents $20,000 in breakdowns.

❌ Mistake #8: No business plan

The problem: Winging it without clear financial goals, target lanes, or growth strategy

The fix:

• Write a one-page business plan
• Define your target lanes and freight types
• Set revenue and profit goals
• Identify your competitive advantage
• Review and adjust quarterly

❌ Mistake #9: Working with bad brokers

The problem: Getting stiffed on payment, dealing with frequent rate reductions, poor treatment

The fix:

• Research brokers before working with them (check FMCSA SAFER, Google reviews, TruckersReport)
• Start with load boards' verified brokers
• Use factoring to protect against non-payment
• Build relationships with 5-10 reliable brokers
• TACH members: Work with vetted TACH Partner brokers

One bad broker can cost you $5,000–$20,000 in unpaid freight.

❌ Mistake #10: No business insurance beyond minimum

The problem: Only carrying required liability, leaving business exposed to devastating losses

The fix:

• Get physical damage coverage (protects your truck investment)
• Consider bobtail/non-trucking liability
• Occupational accident insurance if operating solo
• Business interruption coverage
• Gap insurance if financing

Your truck is your livelihood. Protect it.

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How TACH Helps New Owner Operators Succeed

TACH is built specifically for owner operators and small fleets, providing the tools and resources that help you earn more and keep more.

1. Fast Access to Capital

Cash Advances:

• Get funding in 24-48 hours
• No traditional credit score requirements
• Based on your current operations
• Flexible repayment terms
• Use for repairs or tires

Truck Rentals:

• Rent a truck from Penske or Ryder
• Competitive rates for TACH members
• Discounted deposits for TACH members
• No long-term contracts
• Easy-access to trucks and trailers nationwide

2. Expense Management & Tracking

Built-in expense tracking:

• Cost per mile and revenue per mile analytics
• Auto-categorize expenses
• Real-time profit/loss visibility
• Driver performance insights and metrics
• Simplified tax preparation
• Mobile-first design

Know your numbers without hiring a bookkeeper.

3. TACH Partner Broker Network

Access to vetted brokers who:

• Pay TACH members priority rates
• Have proven payment history
• Communicate professionally
• Prioritize TACH members since they're more reliable

TACH Certified carriers often earn 5-10% more per load from TACH Partner brokers.

4. Better Freight, Better Rates

Get TACH Certified to:

• Demonstrate your safety record
• Show on-time delivery history
• Prove financial stability
• Stand out from competition

Certified carriers receive:

• Priority load tendering from TACH Partner brokers
• Higher rates on competitive lanes from TACH Partner brokers
• Better negotiating position
• More pay per mile from TACH Partner brokers

5. Bridgestone Tire Discounts

TACH members get a discount on Bridgestone tires from authorized dealers nationwide

6. 24/7 Emergency Roadside Assistance from Fleetnet

Emergency support when you need it:

• Nationwide coverage
• Tap "Get Emergency Help" in app
• Fast response times
• Vetted service providers from Fleetnet
• Minimize downtime

7. Education & Community

Learn from experienced operators:

• Best practices guides
• Financial planning resources
• Industry news and trends
• TACH Community support

Join TACH today and get the tools, funding, and support you need to build a profitable trucking business.

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Frequently Asked Questions

How much money do I need to start a trucking business?

Minimum recommended capital:

• Box truck business: $30,000–$50,000
• Semi truck business: $50,000–$100,000

This covers:

• Down payment on truck (10-20%)
• Insurance (first year)
• Permits and registrations
• 3-6 months operating capital
• Emergency repairs

Many successful owner operators start with $50,000–$80,000 in capital or financing.

Can I start a trucking business with no money?

Very difficult, but possible through:

Lease-purchase programs:

• Little to no money down
• Work for carrier while leasing truck
• Path to ownership over 2-4 years
• Higher total cost but accessible

Partner with investor:

• They provide capital, you provide driving
• Split profits until they're repaid
• Risk to relationship, clear agreements critical

Save while driving for company:

• Drive 1-2 years, save aggressively
• Build $30,000–$50,000 nest egg
• Launch with cash and experience

Reality check: Starting with zero capital is extremely risky. One breakdown or slow month can end your business. Most successful operators start with at least $30,000–$50,000.

How long does it take to become a truck driver?

CDL training timeline:

• Company-sponsored training: 3-6 weeks
• Private CDL school: 3-8 weeks
• Community college: 4-8 weeks

Total time from zero to employed truck driver: 1-3 months

To become a professional driver (experienced, confident): 6-12 months

Before becoming an owner operator: 1-2 years recommended

Is owner operator trucking worth it?

Owner operator trucking is worth it if:

• You earn significantly more than as company driver ($80,000+ vs. $60,000)
• You value control over your schedule and routes
• You enjoy business management
• You're disciplined with finances
• You can handle income variability

Owner operator trucking is NOT worth it if:

• You're earning the same or less than you would as company driver
• You hate the business/administrative side
• You have poor financial discipline
• You can't handle uncertainty and risk
• Your truck is constantly breaking down

Success rate: About 50-60% of new owner operators are still in business after 3 years. Those who succeed typically earn $70,000–$120,000+/year (vs. $55,000–$75,000 as company driver).

Most successful owner operators say it's worth it for the income potential and independence. Most who fail say they underestimated the business complexity and costs.

How much do owner operators make after expenses?

Realistic owner operator take-home pay:

• Gross revenue: $150,000–$250,000/year
• Operating expenses: $100,000–$150,000/year
• Net income: $50,000–$100,000+/year

Top performers (experienced, optimized operations): $100,000–$150,000+/year

Struggling operators (poor lanes, cheap freight, old equipment): $20,000–$40,000/year

The difference is:

• Lane selection and rate discipline
• Equipment reliability and maintenance
• Fuel and expense management
• Business skills and broker relationships

First-year owner operators typically earn $50,000–$70,000 while learning. Experienced operators who master the business earn $80,000–$120,000+.

What's the difference between a DOT number and MC number?

DOT Number:

• Tracks your company's safety record
• Required for interstate commerce vehicles over 10,001 lbs
• Assigned immediately
• Used for inspections, compliance reviews
• $300 registration fee

MC Number (Motor Carrier Number):

• Your operating authority (permission to haul freight for hire)
• Required to legally transport goods for customers
• Takes 20+ days to become active
• Required to contract with brokers and shippers
• $300 registration fee

You need BOTH to operate as a for-hire carrier in interstate commerce.

Total cost: $600 + BOC-3 filing (~$50) + insurance filing ($0, done by insurer) = ~$650

Can you make good money with a box truck?

Yes, but earnings are lower than semi trucks:

Box truck owner operator income:

• Gross revenue: $100,000–$200,000/year
• Operating expenses: $60,000–$120,000/year
• Net income: $40,000–$80,000/year

Best markets for box truck businesses:

• Local delivery and last-mile logistics
• Moving and furniture delivery
• Expedited courier services
• Auto parts delivery
• Medical supply delivery

Box truck advantages:

• Lower startup cost ($25,000–$100,000 vs. $100,000–$200,000)
• Home every night
• Easier to find local work
• Less expensive to maintain

Box truck limitations:

• Lower revenue per load ($300–$1,500 vs. $1,500–$5,000)
• More competition in local markets
• Can't haul heavy or oversized freight

Box trucks work well for: Local delivery businesses, people who want to stay home daily, lower-capital startups

How do I find loads as a new owner operator?

Five main ways to find freight:

1. Load boards (most common for new operators)

• DAT, Truckstop.com, direct freight
• Post your truck or search available loads
• Cost: $30–$50/month
• Rates vary widely, must negotiate

2. Freight brokers

• Sign up with multiple brokers
• Build relationships over time
• Better rates with proven reliability
• Research broker payment history first

3. TACH Partner Broker Network

• Access vetted brokers as TACH member
• Priority rates for certified carriers
• Better negotiation position for TACH members

4. Direct shippers

• Contact manufacturers, distributors, retailers
• Cut out broker middle-man
• Higher rates, more stable
• Harder to get contracts as new operator

5. Dedicated contracts

• Negotiate recurring routes
• Same customer/lane repeatedly
• Stable income, predictable schedule
• Requires proven track record

Start with: Load boards + broker relationships + TACH Partners. Build toward dedicated contracts as you prove reliability.

Should I buy or lease my first truck?

Buy your truck if:

• You have capital or can get financing
• You plan to stay in business long-term (3+ years)
• You want to build equity
• You're mechanically inclined or have good maintenance network
• You want full control

Buying pros: Build equity, lower total cost, full control, tax benefits Buying cons: Large upfront cost, you're responsible for all maintenance

Lease-purchase if:

• You have limited capital (under $20,000)
• You want to test owner operator life
• You need training and support
• You're okay with higher total cost for lower barrier to entry

Leasing pros: Little to no money down, path to ownership, built-in freight Leasing cons: Higher total cost, tied to carrier, aggressive payment terms

Most successful long-term owner operators buy their trucks (new or used) rather than lease. But lease-purchase can be a viable entry path if you lack capital.

Recommended: Save for down payment, finance a quality used truck (500,000-700,000 miles), build equity from day one.

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Your Next Steps

Ready to start your trucking career or business? Here's your action plan:

If You Want to Become a Company Driver:

Step 1: Research CDL training programs in your area

• Compare company-sponsored vs. private schools
• Check reviews and job placement rates
• Understand costs and time commitment

Step 2: Enroll in CDL training

• Complete classroom and behind-the-wheel training
• Obtain your CDL learner's permit
• Pass your Class A CDL skills test

Step 3: Apply for company driver positions

• Major carriers hire new CDL graduates
• Compare pay, routes, benefits, home time
• Start building experience

Timeline: 1-3 months to get CDL and start earning $45,000–$55,000/year

If You Want to Become an Owner Operator:

Step 1: Get your Class A CDL (if you don't have it)

• Follow company driver path above

Step 2: Drive for a company 1-2 years (recommended)

• Build clean safety record
• Learn industry and build network
• Save $30,000–$80,000 for startup
• Research lanes and freight markets

Step 3: Create your business plan

• Define your business model and target lanes
• Calculate startup costs and funding needs
• Project revenue and expenses

Step 4: Secure funding

• Save personal capital
• Apply for equipment financing
• Consider lease-purchase program
• Explore TACH Cash Advance options

Step 5: Register your business and get authority

• Form LLC or corporation
• Get DOT and MC numbers
• Obtain insurance and BOC-3
• Complete state registrations

Step 6: Purchase equipment and launch

• Buy truck and trailer
• Set up operational systems
• Build broker network and find freight
• Join TACH for support, tools, and better rates

Timeline: 2-4 years from zero to established owner operator earning $70,000–$120,000+/year

Join TACH for Owner Operator Success

TACH provides everything new owner operators need (3 years of operating history required):

✓ Cash advances for repairs & tires ✓ Business banking services² and TACH Trucker Funding Program Visa® Prepaid Cards¹ ✓ Expense tracking and financial management ✓ TACH Partner broker network with priority rates ✓ Bridgestone tire discounts ✓ 24/7 emergency roadside assistance ✓ Truck rentals from Penske & Ryder ✓ Education and community support

Get started with TACH today →

Build a profitable trucking business with the tools, funding, and support designed specifically for owner operators.

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Disclaimer: This guide provides general educational information about starting a trucking business and becoming a truck driver. It should not be considered legal, financial, or professional business advice. CDL requirements, regulations, costs, and salary figures vary by state, carrier, and market conditions and change over time. Owner operator income varies widely based on experience, equipment, lanes, market conditions, and business management skills. Always consult with licensed CDL schools, attorneys, CPAs, insurance professionals, and business advisors for personalized guidance specific to your situation. TACH is a financial services and technology platform for trucking professionals and does not provide legal, tax, CDL training, or business consulting services. TACH is not a carrier, broker, or employer.