How To Get A Trucking Authority in Texas: A Comprehensive Q&A Guide

Starting your own trucking company can be rewarding and profitable, but it is also a big process with multiple steps. Texas is a huge market with endless opportunities and thousands of loads to haul every day. Taking the time to research the rules and regulations of the trucking industry, as well as the necessary steps to starting a business, can help you make sure that you have a successful launch. In this blog post, we'll discuss the steps you need to take to start your own trucking company in Texas and provide helpful tips to make sure that your business is a success.

Q1: What is the first step in starting a trucking company?

A: The first step is to come up with a business plan. Some essential questions to ask yourself are: What are your goals? Do you want to grow a fleet or do you want to remain an owner-operator and have more freedom than when you lease on? What is your target market? Will you have a semi-truck or a hot shot? What type of trailer will your company be driving? Reefer, Flatbed, Hotshot, Power Only? Flatbed has a huge market in Texas but requires more physical work. Reefer has steady rates throughout the year, but you should be experienced in controlling the temperature of the trailer. You can read our blog on the pros and cons of different trailers for your trucking company to help you determine which type of trailer is best for you. How do you want to price yourself? You should calculate the minimum costs for operating your company (ie fuel costs, truck and trailer costs, driver pay, insurance) and make sure all the loads you take are profitable for you.

Q2: What licenses and permits are required to start a trucking company?

A: You'll need several licenses and permits. If you're an owner-operator then you need a commercial driver's license (CDL). You will need to form your trucking entity. You can create a DBA(sole proprietor), a Limited Liability Company(LLC) or a corporation. There are different pros and cons to each type of company, so be sure to research before you move forward with forming a company. To get your own trucking authority, you will need to get a USDOT number issued by the Federal Motor Carrier Safety Administration (FMCSA), and a Motor Carrier (MC) number. Depending on your operations, you may also need to obtain other permits, drug testing, and specific state permits required by Texas. If you call us, we can help determine exactly all the permits you need to operate legally!

Q3: How do I acquire trucks and equipment for my trucking company?

A: You can choose to buy or lease your trucks and trailers, depending on your budget. Don't forget to factor in the cost of maintenance and insurance. If you buy your trucks and trailers, you own them outright and you will also be responsible for truck taxes and repairs. In most cases, it's better to own your equipment since it gives you possession over assets in your company If you lease your trucks and trailers from a company like Penske. Your payment will be higher, but many rental companies take care of repairs and taxes for you. Power only is when you only have a truck and no trailer. When you run power only, it is more difficult to obtain loads since you're reliant on the shipper or broker to have the trailer. So it's a good idea to try to buy the trailer or rent it from a rental company like XTRA Lease.

Q4: How do I hire drivers for my trucking company?

A: Look for candidates with a clean driving record and a valid CDL. You can post job listings online, in local newspapers, or through job placement agencies. Websites like Truckers Network, Indeed or Glassdoor can make finding drivers easier. Using your contacts such as your friends and family is a good idea since they can be trusted and you have an idea of who they are as a driver. You can also post job flyers at truck stops or places truck drivers would frequent. Remember to properly vet drivers by keeping a Driver Qualification File(DQF) for the driver and doing essential tasks such as running MVR checks. If you're an owner-operator, you don't need to hire a driver since you are the driver and your own boss!

Q5: What type of insurance do I need for my trucking company?

A: Trucking companies require specific types of insurance, including liability insurance and cargo insurance. It's best to consult with an insurance agent to ensure you have the right coverage. The FMCSA requires $750k minimum liability insurance but most shippers and freight brokers typically want $1 million. Cargo insurance is typically at $100k.

Q6: How do I attract customers to my trucking company?

A: The most common way trucking companies are through independent dispatchers and by checking online load boards. When you first start, it may be more difficult to get loads until your authority has aged a bit. You can read our blog on how to secure loads as a new Texas trucking authority for tips. Marketing your business is important. This can create a website, open social media accounts, and network within the industry to help find leads for customers. Providing excellent service and on-time deliveries is also key to attracting and retaining customers.

Get Started On Your Dreams Today!

Starting a trucking company can be a challenging but rewarding journey. It may seem hard, but we have helped 100's of trucking companies start and run successfully over the years. We can help you with all things from forming your trucking LLC, getting your trucking authority, navigating Texas trucking regulations, drug consortium setup, factoring and more. Use our knowledge, connections, and tools to jump-start your trucking company! Give Texas Truck Permits a call at (832) 787-1111 or fill out our online form to get your trucking company started.