Step 2: Get your operating authority

Before you can legally haul freight, your trucking company must be properly registered and authorized to operate. This step establishes your business with federal regulators and ensures you’re compliant before accepting loads or working with brokers.

Most new carriers experience delays at this stage, so completing your operating authority early helps you avoid downtime and missed revenue opportunities.

What an operating authority includes

• USDOT Number: A USDOT number is required for most commercial carriers and is used to track safety information, inspections, audits, and compliance. It identifies your company in federal safety databases and is mandatory for interstate trucking operations.
• Motor Carrier (MC) Number: An MC number gives you the legal authority to transport freight for hire across state lines. Brokers and shippers require this number before they can legally work with your business.
• Commercial Driver’s License (CDL): If you plan to drive your own truck, you’ll need a valid CDL appropriate for your vehicle class. Even if you hire drivers, understanding CDL requirements is important for compliance and future growth.

All of these registrations are handled through the Federal Motor Carrier Safety Administration (FMCSA).

Important timing & compliance considerations

Once you apply for your MC authority, there is a 20-25 day protest period before it becomes active. During this time, you must:

• File the required insurance with the FMCSA
• Designate a process agent (BOC-3 filing)
• Ensure your business information is accurate and consistent

Missing any of these steps can delay activation and push back your ability to haul freight.

Recommended resource

Simplex Group

An OTR Solutions partner, Simplex Group specializes in helping new carriers navigate the operating authority process. They handle USDOT and MC number applications, BOC-3 filings, and ensure your paperwork is completed correctly to avoid delays.

Step 3: Get the right equipment

Your equipment is one of the biggest investments you’ll make when starting a trucking company. The truck and trailer you choose directly impact your operating costs, the freight you can haul, and how reliably you can stay on the road.

Selecting the right equipment from the start helps prevent breakdowns, unexpected expenses, and lost revenue during your first year in business.

Match equipment to your freight type

Different freight types require different equipment, and choosing the wrong setup can limit your earning potential.

• Dry van: Most common and versatile option for general freight
• Reefer: Requires temperature-controlled trailers and higher maintenance costs
• Flatbed: Often higher-paying loads but requires securement equipment and added responsibility
• Specialized freight: May require permits, escorts, or customized trailers

Your freight choice should align with your experience, budget, and long-term business goals.

Buying vs. leasing your truck

Many new carriers lease equipment to reduce upfront costs and preserve cashflow, while others prefer ownership for long-term equity.

Leasing may be a good fit if you want:

• Lower initial investment
• Easier upgrades as your business grows
• Predictable monthly payments

Buying may make sense if you want:

• Full ownership and long-term cost control
• More flexibility with maintenance and customization
• No mileage or usage restrictions

Both options can work. The right choice depends on your financial position and risk tolerance.

Budget for maintenance & operating costs

Beyond the purchase or lease payment, your equipment budget should include:

• Preventive maintenance and repairs
• Tires and replacement parts
• Registration and inspections
• Downtime reserves for unexpected breakdowns

Planning for these costs upfront helps keep your truck moving and your revenue steady.

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Step 4: Get trucking insurance

Insurance is federally required before your operating authority can be activated. The right coverage protects your truck, cargo, and business from financial loss and ensures brokers and shippers will work with you.

Without proper insurance on file, your authority will not go active with the FMCSA.

5 types of trucking insurance new carriers need

Federal and contractual requirements create multiple layers of coverage that work together to protect your business, cargo, and financial stability.

1. Primary liability insurance

Federal law requires carriers to meet minimum federal liability insurance requirements, which are typically $750,000 for most freight, $1 million for certain commodities, or even $5 million for some commodities. This covers damage or injury you cause to others during an accident. Your MC authority cannot be activated until proof of this coverage is filed with the FMCSA.

2. Cargo insurance

Protects the freight you're hauling if it's damaged, lost, or stolen. Most brokers and shippers require between $100,000 and $250,000 in cargo coverage before they'll work with you. This is typically not federally mandated for general freight but is a practical requirement for doing business.

3. Physical damage insurance

Covers repairs or replacement if your truck is damaged in an accident, fire, theft, or weather event. While not legally required, most lease agreements and lenders mandate this coverage to protect their investment.

4. Occupational accident insurance

If you're an owner-operator without workers' compensation requirements, occupational accident insurance covers medical expenses and lost income if you're injured on the job.

5. Non-trucking liability (bobtail insurance)

Covers you when operating your truck without a trailer or outside of dispatch, such as personal use or deadheading home. Many policies exclude coverage during these times, leaving you exposed without this add-on.

How much does trucking insurance cost?

New carriers typically pay $14,000–$22,000 per year for a full insurance package. Insurance is often one of the largest upfront expenses when starting a trucking company, alongside permits, equipment, and fuel. Your actual cost depends on:

• Driving experience and safety record
• Type of freight hauled
• Operating radius (local vs. long-haul)
• Equipment value
• Claims history

First-year premiums are usually higher, but maintaining a clean safety record and avoiding claims can help lower costs over time. 

Recommended resource

Marquee Insurance Group (MIG)

MIG is one of OTR Solutions’ partners that specializes in commercial trucking coverage. MIG pulls quotes from 50+ insurers to find a policy that fits your business and budget.

Step 5: Open a business checking account

Separating your business and personal finances is essential for protecting your personal assets, staying organized, and operating as a legitimate trucking business. A business checking account helps you manage cashflow, track expenses, and get paid without confusion or risk.

Why a business checking account matters

A dedicated business account helps you:

• Protect your personal assets by keeping business finances legally separate
• Track real operating costs like fuel, maintenance, insurance, and repairs
• Simplify tax prep with a clear record of income and expenses
• Build credibility with brokers, shippers, and vendors
• Prepare for financing by establishing clean financial records

For new carriers, this step lays the foundation for financial stability and long-term growth.

What to look for in a business checking account

Not all business accounts work well for trucking. Look for an account that offers:

• Low or no monthly fees and no minimum balance requirements
• Unlimited transactions or high transaction limits for frequent deposits and fuel purchases
• Mobile access so you can manage money on the road
• Easy integrations with factoring and accounting tools

Avoid accounts that add friction, hidden fees, or restrictions that slow you down.

When to open your business checking account

Open your business checking account as soon as your LLC or S-Corp is registered and you have your EIN (Employer Identification Number) from the IRS. This ensures you're ready to accept payments as soon as your authority is active and you start hauling freight.

Recommended resource

OTR Clutch

OTR Clutch is an FDIC-insured business checking account built specifically for truckers. It offers no monthly fees, no minimums, and seamless integration with OTR’s Factoring programs to simplify cashflow from day one.

Step 6: Get a freight factoring company

Cashflow is one of the biggest challenges new trucking companies face. While brokers and shippers may take 30–90 days to pay invoices, your fuel, insurance, and truck payments are due immediately.

Freight factoring helps bridge that gap by giving you fast access to your earnings after delivery, so you can keep running loads without waiting on slow payments.

What freight factoring does

Freight factoring allows you to sell your invoices to a factoring company in exchange for fast payment. Instead of waiting weeks to get paid, you receive the majority of your invoice value shortly after delivery.

For new carriers without established credit or access to traditional financing, factoring is often the most practical way to maintain steady cashflow and cover daily operating expenses.

Why factoring matters for new trucking companies

Factoring helps new carriers:

• Cover fuel, insurance, and maintenance costs on time
• Avoid cashflow shortages 
• Take on more loads without waiting for payments
• Reduce financial stress while building business credit

It’s a cashflow tool designed to keep your business moving.

Recommended resource

OTR Solutions’ Factoring 

OTR Solutions offers startup-friendly, True Non-Recourse Factoring that protects you from chargebacks when working with approved brokers. With transparent pricing, 24/7 instant funding on approved invoices submitted in the OTR Mobile App, and dedicated in-house support, you’ll always have a clear picture of your cashflow.

Step 7: Sign up for a fuel card

Fuel is one of the largest expenses new trucking companies face, often accounting for 20–30% of total operating costs. When you’re just starting out, paying full retail prices at the pump can quickly eat into already tight margins.

A fuel card helps reduce fuel costs and manage cashflow by giving you access to discounted pricing at major truck stops from day one.

What a fuel card does

A fuel card is a payment tool designed specifically for trucking operations. Instead of paying full retail price for fuel, you receive discounted rates at participating locations. With the OTR Fuel Card, you can track fuel purchases automatically, all in the OTR Mobile App.

For new carriers, a fuel card is a simple way to control one of your biggest expenses. 

Why fuel cards matter for new trucking companies

Fuel cards help new carriers:

• Lower fuel costs on every fill-up
• Protect margins during the first months of operation
• Keep fuel expenses separate from personal spending
• Track fuel purchases more easily for bookkeeping

Small per-gallon savings can add up quickly over the course of a year.

Recommended resource

The OTR Fuel Card

The OTR Fuel Card delivers real savings for owner-operators and small fleets:

• Average savings of $0.50 per gallon at in-network locations
• Discounts as high as $2.25 per gallon
• Accepted at 8,000+ locations nationwide
• 3,000+ in-network locations offering exclusive discounts
• Partnerships with top fuel brands like TA Petro, AMBEST, and Speedway

You don't need to factor with OTR Solutions to sign up for the OTR Fuel Card, but combining both services maximizes your savings and simplifies your financial operations with a discounted factoring rate and fuel credit eligibility.

Step 8: Find loads

Having your authority, equipment, and financial systems in place means nothing if you don’t have freight to haul. Finding consistent, profitable loads is what keeps your business running and your cashflow moving.

For new carriers, load boards are the most common starting point for booking freight and building relationships with brokers.

How new carriers typically find loads

Most new trucking companies use load boards to search for available freight based on:

• Location and destination
• Equipment type
• Rate and mileage

Load boards act as marketplaces where brokers post freight and carriers book loads directly. They’re an essential tool when starting out and help you stay moving while you build industry connections.

What matters most when booking loads early on

When you’re new, focus on:

• Consistent freight, not just the highest rate
• Reliable brokers with a history of paying on time
• Loads that fit your lanes and equipment
• Minimizing deadhead miles

Taking slightly lower-paying but reliable loads early on helps you build experience, credibility, and cashflow.

Avoiding bad loads and broker issues

New carriers are more vulnerable to freight fraud and payment issues. Before booking, it’s important to:

• Work with brokers who have verified authority
• Avoid loads that seem unusually high-paying or rushed
• Confirm payment terms before hauling

Using tools that help verify brokers before you book can reduce risk and protect your time and revenue.

Recommended resources

LoadConnect

OTR Solutions partners with LoadConnect to help carriers identify loads that are pre-approved to factor with OTR before booking. This makes it easier to avoid unreliable brokers and focus on loads that support steady, predictable cashflow.

Step 9: Build relationships

Trucking is a relationship-driven business. Your long-term success depends not only on delivering freight, but on how reliably and professionally you work with the people around you.

Strong relationships with brokers, shippers, and service providers lead to better rates, steadier freight, and fewer issues when challenges come up.

Why relationships matter in trucking

Carriers who build trust benefit from:

• More consistent access to loads
• Faster resolution when issues arise
• Better rates over time
• Continued freight during slow markets

When brokers and partners trust you, you become a preferred carrier - not just another truck.

Where to focus as a new carrier

Early on, prioritize relationships that directly impact your ability to stay moving:

• Brokers: Be reliable, communicate clearly, and follow through. Consistency builds trust faster than aggressive rate negotiation.
• Shippers (longer-term): Direct shipper relationships take time but can provide stability and higher margins as your business grows.
• Service providers: Fuel vendors, repair shops, and parts suppliers who know you are more likely to offer priority service when you need it most.

Professionalism, honesty, and reliability go further than anything else.

Protect your reputation

Your reputation travels quickly in this industry. Protect it by:

• Only taking loads you can deliver on time
• Communicating early if issues arise
• Being honest about your capabilities
• Handling problems professionally

A strong reputation opens doors and a damaged one can close them just as fast.

Recommended resource

OTR Partners

OTR Solutions works with a network of trusted industry partners that support carriers at every stage of growth. Building relationships with vetted partners gives you access to reliable services, competitive pricing, and experienced support.

Step 10: Monitor income, expenses, and trips

Profitability in trucking comes down to one thing: recognizing your numbers. Many new carriers fail not because they can't drive or find loads, but because they don't track income and expenses closely enough to see whether they're actually making money. Without clear financial visibility, you're operating blind, making decisions based on feelings rather than facts.

Why tracking your numbers matters

Financial awareness creates operational advantages:

• Spot problems like overspending on fuel in certain areas or brokers who consistently underpay
• Catch billing errors before they snowball
• Plan for quarterly taxes and major expenses
• Identify opportunities to cut costs and improve profitability

Key metrics every carrier should track

Monitor these numbers to understand your true profitability:

• Revenue per mile (all miles): Your true earning rate, including deadhead
• Cost per mile: Total operating expenses per mile driven
• Deadhead percentage: Target 10–15% early, work toward <10%
• Fuel cost per mile: Track separately to evaluate fuel card savings
• Average days to payment: Should be same-day or less with factoring
• Monthly net profit: Ensures you're meeting income goals
• Operating ratio: Expenses divided by revenue, aim for 70-80%

How to track your finances effectively

Set up systems that make tracking manageable:

• Use accounting software like QuickBooks, FreshBooks, or trucking-specific tools
• Separate business and personal expenses completely
• Categorize every expense into fuel, maintenance, insurance, permits, etc.
• Review financials weekly to catch problems early
• Reconcile accounts monthly by comparing records to bank statements
• Set aside 25-30% of net profit for quarterly estimated taxes

Planning trips for maximum profitability

Smart trip planning separates profitable carriers from break-even operations:

• Minimize deadhead miles by pre-booking backhauls whenever possible
• Use your fuel card app to identify the cheapest fuel stops along your route
• Evaluate whether toll savings outweigh extra time and miles
• Factor in wait times at facilities with poor reputations
• Balance speed with efficiency to meet schedules without sacrificing fuel economy
• Prioritize lanes that consistently pay well with good return freight
• Check weather forecasts and traffic patterns to avoid delays

Recommended resource

OTR Trucking Tools 

Running a trucking business is easier with the right tools. OTR Solutions offers integrated solutions that simplify financial management, trip planning, and compliance monitoring so you can focus on driving and growing your business.

• OTR Mobile App: Submit invoices, check brokers are creditworthy, and find fuel discounts
• Client Portal: Manage payments, users, and account preferences
• Truly Instant Funding: Get paid 24/7, even on bank holidays
• Cash Advances: Cover fuel and lumper expenses before delivery
• Safety Score Monitoring: Track CSA BASIC scores that impact your ability to book freight

Additional Tips: Recruit and Retain Drivers.

Once your trucking company is established and you're ready to hire drivers, focus on building a strong team. Here's how to attract and keep quality drivers:

Hiring the right people:

• Set clear standards for experience and safety records
• Look for drivers who align with your company values
• Conduct thorough interviews and background checks

Keeping drivers satisfied:

• Offer competitive pay and benefits
• Create fair policies around home time and scheduling
• Provide opportunities for professional development
• Maintain open communication and regular check-ins

Building loyalty:

• Treat drivers as valued team members, not just employees
• Recognize contributions and celebrate milestones
• Address concerns quickly and professionally
• Create a positive work environment

Strong recruitment and retention strategies keep your operation stable and reduce turnover costs.

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Additional Tips: Integrate Technology

Technology helps you run leaner and smarter. Transportation Management Systems (TMS) and other tools can transform how you operate.

What TMS Integrations can do for your business:

• Streamline daily operations and reduce manual work
• Optimize routes to cut fuel costs and deadhead miles
• Simplify compliance tracking and reporting
• Provide data insights for better decision-making

Benefits of the right tech:

• Save time on administrative tasks
• Reduce errors in booking and billing
• Make informed decisions based on real data
• Stay competitive as the industry modernizes

The right technology investment pays for itself through efficiency gains and better operational control.

Recommended resource

These integrations help carriers stay organized and simplify everything from load booking to payment collection.