25.06.2023

STARTING A TRUCKING BUSINESS IN THE US

The USA is a country where logistics is exemplary. Today more than 80% of transportation is done by ground transportation, and the owners of this business provide about 10-15% of the country's GDP growth. If you are planning to move from Russia/CIS to America, the tractor-trailer business may be a good idea to apply for a business visa and then apply for US citizenship.

However, you should realize that there is a huge amount of unreliable information on this topic on the Internet. Often you can find articles that say that buying a single tractor will guarantee you an E-2 visa or an L-1 visa. Unfortunately, this is not the case. We recommend researching in detail the requirements for a particular visa, whether it is an E-2 or L-1. This will allow you to understand the scale of your business in the US.

STARTING A LOGISTIC COMPANY IN THE USA

The trucking business is very developed in the USA, which means that there will be a lot of competitors in this niche, and with a lot of experience. Many truckers decide to work independently every year, set up a trucking company and fail miserably.

The biggest mistake is that you forget that running a trucking company is not the same as driving a truck. You can be a world-class truck driver, but to succeed in trucking management, you need to be a good business owner first.

It will be difficult to start a small business in the country, but if you consider the ins and outs of the market, you can grow from a small company to a major carrier in a few years. This will require you to develop a good strategy by calculating all the peculiarities of running a business.

To open your own logistics company in the USA is not an easy task, for this you need to make a plan of the main actions of the future company:

  1. ANALYZE THE TRAC BUSINESS IN THE COUNTRY AND IN A PARTICULAR STATE;
  2. CHOOSE A SUITABLE REGION TO LAUNCH THE PROJECT;
  3. CALCULATE PROFITABILITY TAKING INTO ACCOUNT TAXATION PECULIARITIES;
  4. learn the process of obtaining the necessary business licenses and permits (PERMITS), such as:
  • USDOT number;
  • Federal Motor Carrier Safety Administration (FMCSA) Motor Carrier (MC) number;
  • Commercial Driver's License (CDL);
  • Required insurance contracts;
  • Fuel Tax Agreement (IFTA).
  1. INVESTIGATE THE CAPITALIZATION OF THE BUSINESS;
  2. CREATE A BUSINESS PLAN FOR THE SUCCESSFUL DEVELOPMENT OF THE PROJECT.

This business plan for starting a trucking company should start with market research and end with a clear data-driven strategy with step-by-step goals that answer all the basic questions such as:

  1. WHAT TYPES OF VEHICLES AND EQUIPMENT DO YOU NEED TO PURCHASE OR LEASE?
  2. WHERE WILL YOUR FLEET BE BASED AND WHO WILL YOU HIRE AS DRIVERS AND DISPATCHERS?
  3. WHAT TYPES OF FREIGHT WILL YOU WORK WITH AND WHERE WILL YOU FIND THEM?
  4. WHAT IS THE CURRENT MARKET RATE FOR TRUCKING AND HOW ARE YOU GOING TO BILL AND CHARGE YOUR CUSTOMERS AND BROKERS?
  5. WHO ARE YOUR MAJOR COMPETITORS AND WHAT ARE THEIR STRENGTHS AND WEAKNESSES?
  6. WHO ARE YOUR IDEAL CUSTOMERS AND WHAT CAN YOU OFFER THEM?

A business plan is your roadmap on how to start and run a successful logistics company. This detailed analysis will help you stay focused, set clear goals, define your company's values, and prepare for potential challenges.

HOW MUCH WILL IT COST TO OPEN A TRAC BUSINESS IN THE STATES?

The cost of opening depends on many factors, such as:

  1. WHETHER YOU WILL BE BUYING THE VEHICLE OR LEASING;
  2. WHETHER THE VEHICLES WILL BE NEW OR USED VEHICLES;
  3. INSURANCE COSTS - DEPENDS ON THE AGE OF THE COMPANY, YOUR EXPERIENCE IN THE INDUSTRY, THE EXPERIENCE OF THE DRIVERS, THE COMPANY'S CREDIT RATING, ETC. Д.;
  4. OFFICE MAINTENANCE COSTS;
  5. ARE THERE PLANS TO OBTAIN A VISA THROUGH THIS BUSINESS? IF YES, ADDITIONAL EXPENSES MAY BE REQUIRED TO QUALIFY FOR THIS VISA.

This article is intended for informational purposes only and does not constitute legal advice. It should not be relied upon as a substitute for advice from qualified legal counsel familiar with your specific circumstances. No attorney-client relationship is created by the provision of this information.