Trucking is a good business to get into. 70% of goods sold in the US are transported via semi truck. If you are looking to start your own trucking company, you may be wondering if you can buy a semi truck without a Commercial Driver’s License (CDL).
According to NASDAQ.com, trucking companies are a good investment and can be an excellent source of income. Moving freight is a growth industry, as more people choose to stay home and order goods online. If you don’t plan on driving, you can own a semi truck without a CDL. You can start a freight business with just one truck, and you can hire a driver to do the work.
Whether you buy one truck or a whole fleet, you can start a freight carrier business without ever being a driver. There are a few things you need to be aware of before diving into the transportation business. Read on to find out ways to profit in transportation without doing the driving.
How To Own a Semi Truck Without a CDL
You can start a trucking business from scratch or buy an already existing freight company. You will need a qualified driver behind the wheel, but you do not need to have a CDL. Here are some ways to get into the trucking business without being a driver.
- You can buy a semi truck and lease it out to a trucking company. This is called leasing on. Many trucking companies have a program that lets a truck owner lease on, but you will be expected to provide the driver. Just make sure to pay close attention to the lease agreement.
- Hire someone with a CDL to drive your truck. This will leave you free to manage the business. You can advertise on trucker job boards. It’s a good idea to hire a driver who lives fairly close so you can see your truck occasionally to make sure it’s still in good condition.
- You can set up a trucking business as a means of passive income by finding investors. When your business is up and running, you can hire a management company to run the daily business.
How To Be an Owner of a Successful Trucking Business.
Before you start your trucking business, there are some things you need to know. From hiring drivers to putting the appropriate signage on your truck cab, you always need to ensure that you are in compliance with the governing bodies of ow the industry.
Do Your Homework
This is true for any startup, there is a certain amount of research to do before you set up your business. That’s why it is always a good idea to have a business plan. For a trucking business though, you need to decide what kind of freight you want to haul. You will need this information when you start filling out paperwork for your various registrations.
Also, you need to know what your costs will be, who you competitors are, how many employees you will need, and when you plan on showing a profit.
Get Your Paperwork in Order
In order to operate your own trucking company, you have to get your trucking authority. This is granted by the Federal Motor Carrier Safety Administration (FMCSA) and basically gives you the authority to transfer products across state lines.
Before you receive your trucking authority, there are several steps you must complete.
- Before you do anything, you need to acquire an Employment Identification Number (EIN).
- Second, you will need to get a US Department of Transportation (USDOT) number. A USDOT number shows your truck is in compliance with the standards upheld by the DOT and FMCSA.
- Third, you need your Motor Carrier (MC) number. An MC number is mostly for carriers that haul federally regulated goods across state lines.
- The fourth thing you will need is a BOC-3. In the event that your company gets sued, this designates someone to represent your company in each state you operate in.
- Next, you will need insurance. You will need things like auto liability, physical damage, cargo, and towing. You may need fuel hauler/hazmat insurance or pollution coverage.
- Sixth, you must complete your UCR or Unified Carrier Request. This is a fee you pay to haul goods across state lines.
- Lastly, you must display the legal name of your company on the door of the cab plus a sticker with your USDOT number.
- Once all the steps are completed, then you can receive your trucking authority.
Conclusion
The trucking business can be very lucrative. The best thing about it is you can make money with only one truck and a driver, or with a large fleet of trucks and several employees.