How to Start a Trucking Company in California

If you’re a truck driver and are ready to take the plunge to become an independent owner-operator, we’ve got you covered. We’ve put together this checklist of items you’ll need to start your own trucking company in California and be your own boss. We highly advise you to complete your research to find out if obtaining an MC Authority is the appropriate decision for you before we start. Not all owner-operators require authority, as you are undoubtedly already aware.

 

How to Start a Trucking Company in California?


The methods listed below explain how to launch your own trucking company and the associated expenses. We’ll also touch on the perks of leasing with a virtual trucking carrier instead of obtaining your own authority.

1. Build a Trucking Business Plan

In the trucking industry in particular, failing to prepare is preparing to fail. Outlining your strategy and directing the expansion of your organization require a strong business plan. See our guide on writing a trucking business plan if you need assistance. Alternatively, you may streamline the process by becoming an independent owner-operator under Rodiesinc’ authority, which will let you be your own boss without having to deal with the headache of creating a comprehensive strategy for investors and lenders.

 

2. Registration of State Businesses ($35–$500)


Before beginning employment, even independent owner-operators must legally create their trucking business. This entails satisfying state regulations, registering your company, and acquiring a federal tax ID. Where you register depends on your location and business structure; LLC filing fees can range from $35 to $500, depending on the state.

 

3.Obtain Your CDL (Licenses) for between $0 and $5,000

 

Operating a combination tractor-trailer requires a Class A Commercial Driver’s License (CDL). Depending on whether you enroll in a truck driving school or use employer-sponsored training programs, which may include a one- to two-year work commitment, costs can range from free to $5,000.

  • For your cargo, be sure to obtain the appropriate CDL class and any required endorsements, including:
  • Doubles or triples: for more than one trailer
  • Tanker: for large gasses or liquids
  • For hazardous materials, use Hazmat.
  • Passenger: for passenger cars or buses

State licensing authorities and the FMCSA provide free preparation guides and manuals.

 

4. USDOT and Motor Carrier (MC) Authority Number – $300


A USDOT Number identifies your company for safety monitoring and is required for all commercial vehicles hauling cargo across state lines. Obtaining it is free.

An MC Authority Number is required for interstate trucking and comes with a $300 application fee, with additional costs for insurance and other requirements.

If you lease on with a carrier, you don’t need your own DOT or MC numbers, Rodiesinc handles all the paperwork. Simply complete a short application, and their team will guide you through the setup.

5. Unified Carrier Registration (UCR) costs between $59 and $56,977

Businesses and people engaging in interstate trade must register and pay a government charge known as Unified Carrier Registration (UCR). The price depends on the size of the fleet and ranges from $59 to $56,977. UCR may be insured by another carrier if you operate under their jurisdiction.


6. Tag for the International Registration Plan (IRP): $1,500–$2,000

The procedure for obtaining allocated license plates for commercial vehicles and trailer equipment is known as the International Registration Plan (IRP).
The state in which your business is situated issues the IRP. If leased owner-operators operate under the license plates of another carrier, they could not be subject to IRP.


7. International Fuel Tax Agreement Decal (IFTA): $0

A fuel license known as the International Fuel Tax Agreement (IFTA) enables businesses to submit quarterly fuel consumption tax reports according to the state in which their headquarters are located. A decal included in the IFTA needs to be placed on every truck and kept up to date for every year.

 

8. $20 to $40 for the BOC-3 Form.

An essential component of the MC authorization application procedure is Form BOC-3. Your business can appoint a process agent in a different state by using BOC-3. The process agent will accept any legal paperwork sent to you in Michigan, for instance, if your business is based in California but is being sued in Michigan.

 

9.Standard Carrier Alpha Code (SCAC) – $95

 

Companies that typically transport the following types of goods are identified by the Standard Carrier Alpha Code (SCAC):

  • Military
  • Government
  • International
  • Intermodal (rail and ship containers)
  • Port cargo
  • Railyard cargo
  • Chemicals/hazardous materials 

You must register and pay a $95 charge on the National Motor Freight Traffic Association’s (NMFTA) website if you want to carry any of the aforementioned items.

10. $3,000 to $12,000 for insurance

Another prerequisite for a number of registrations, including the MC authority application, is insurance. Insurance is necessary for your trucking company to cover the expense of your goods and equipment. A comprehensive list of insurance needs is kept up to date by the FMCSA. Among the necessary insurance types are:

  • Auto insurance
  • Physical damage to cars
  • Cargo
  • Liability in general

Conclusion:

To establish your own trucking business, you must first create a comprehensive trucking business plan and complete the proper paperwork to register your company and receive a USDOT and Motor Carrier Authority Number, among other criteria. Additionally, you will have to pay the Federal Heavy Highway Vehicle Use Tax (HVUT) if your vehicle weighs 55,000 pounds or more. You must submit IRS form 2290 and pay $550 annually for each car in order to maintain HVUT compliance. At Rodies Inc., a trusted trucking company in Bakersfield CA, we guide new and experienced trucking entrepreneurs through every step of the process—from registration and compliance to ongoing fleet management solutions—ensuring your business stays on the road legally and profitably.

 

FAQs

Q1: Does launching a trucking business in Bakersfield, California require a business plan?

Indeed. Outlining your strategy, overseeing operations, and directing expansion all require a company plan. It assists you in maintaining organization and becoming ready for costs, licenses, and legal obligations.

 

Q2: What is the price of registering a trucking business in California?

The cost of state registration varies according to the location and form of your firm. In addition to extra registrations like MC authorization or DOT numbers, LLC filing expenses usually vary from $35 to $500.

 

Q3: What type of CDL do I need to operate a truck?

A Class A CDL is required for combination tractor-trailers. Additional endorsements may be needed for specific cargo types, including doubles/triples, tanker, Hazmat, or passenger transport.

 

Q4: Do I need a USDOT number and what is it?

Your trucking firm is identified for safety monitoring by a USDOT number. It is free and necessary for any commercial vehicles transporting goods over state boundaries.

 

Q5: What is an MC Authority Number, and how much does it cost?

An MC Authority Number allows your company to operate interstate and costs around $300, with additional fees for insurance. Some carriers, like Roadies Truck Company, handle this process for leased drivers.

How Much Does a Freight Broker Charge in California?

A freight broker serves as a go-between for freight carriers and businesses who need to transport their goods by freight. Freight brokers have a lot of freedom and flexibility, which makes it an appealing job choice. Knowing the different expenses required to launch your firm is crucial if you want to work as a freight broker. The expenses associated with becoming a freight broker can range from starting your own trucking company in California to paying for freight broker training and obtaining your license. We will outline every expense involved in launching your freight broker business in this post.

 

What Are Included in Freight Brokerage Services?


Typically, a seasoned freight brokerage services provides:

Carrier matching: Carrier matching is the process of selecting the best carrier for your load based on factors including freight type, size, weight, and distance.

Rate Negotiation: Securing the best shipping costs possible by using their industry experience and network.

Shipment tracking: giving you up-to-date information so you can always be aware of the whereabouts of your freight.

Paperwork & Compliance: Managing insurance, permits, bills of lading, and ensuring that all shipments adhere to national and state regulations.

Specialized Services: Using the appropriate carriers and equipment to handle large, chilled, dangerous, or valuable items.

How Much Does a Freight Broker Charge in California?

  • ‍Business registration fees
  • Freight broker authority
  • Freight broker BOC3 filing fee
  • Freight broker surety bond
  • Insurance premiums
  • Freight broker training
  • Freight broker software
  • Freight Broker Load Boards
  1. Business registration fees
    You have to register your company with your state before you can obtain a freight broker license. The Department of Revenue or the Secretary of State’s office handles registration for the majority of states. Where you live will affect how much it costs to register your business. The legal structure of your company entity (corporation, LLC, etc.) may also affect the cost, depending on the particular regulations in your state. For instance, forming a corporation in Nevada costs $725, whereas filing a limited liability business (LLC) costs $500. Out of all the states, these fees are the highest. In most jurisdictions, the cost of forming a business is between $100 and $300, but in some, it may be as low as $50.
  1. Freight broker authority
    Before beginning their operations, freight brokers must acquire authorization from the Federal Motor Carrier Safety Administration (FMCSA). Brokers are guaranteed to be competent and responsible by this license. You can apply by filling out Form OP-1 and selecting either Broker of Property (apart from Household Goods) or Broker of Household Goods as your kind of authority. If necessary, you can apply for both. For each authority, the filing cost is $300.
  1. Freight broker BOC3 filing fee
    A process agent who may accept legal papers on behalf of a freight broker in the states where they operate is established via the BOC3 form. To obtain your broker permission, you must have the BOC3. To register a freight broker agent, a $25 BOC3 fee must be paid.
  1. Freight broker surety bond
    A $75,000 BMC-84 surety bond is required by freight brokers in order to meet licensing requirements. Only a fraction of this sum, known as the premium, is paid by you. Experience, finances, and credit all affect premium rates. Candidates with bad credit or a bad credit history will pay more, while well-qualified candidates may pay as little as 1.25% (about $938).

     

  2. Insurance premiums
    General liability, cargo, and property insurance are strongly advised to safeguard your company, albeit they are not required.
  • Annual general liability: $300 to $1,000
  • Depending on coverage, cargo and property insurance costs $100 to $400 a month.

Workers’ compensation insurance is necessary if you have employees. Verify coverage standards with your local government at all times.

 

  1. Freight broker training
    Although it is not necessary, training is strongly advised to understand how to manage a brokerage and adhere to regulatory standards. Depending on the curriculum, courses might cost anywhere from $200 to more than $1,000.
  1. Freight broker software
    You will want transportation management software (TMS) if you wish to succeed as a freight broker. You can manage your accounts and operations with the aid of this program. It may also be used to see reports and assess how well your firm is doing. TMS systems for freight brokers usually range in price from $50 to $100. If you want more sophisticated features and functionality, there are more costly solutions.

 

  1. Freight Broker Load Boards
    And lastly, load boards. These are internet gathering places for shippers and freight brokers to organize cargo. Carriers post trucks, brokers post cargoes. When they work together, they may connect and meet each other’s needs. The average monthly cost of a load board is between $50 and $150.

Conclusion:

Thankfully, freight brokers have modest beginning expenses, so you can launch your company with minimal risk. Out of all the expenses involved in establishing a freight brokerage, the freight broker bond often has the biggest financial impact. Securing a reasonable premium depends on the bond issuer you select. At Rodies Inc., we specialize in providing affordable and reliable bonds as part of our comprehensive freight brokerage services. Whether you’re a highly qualified broker or just starting out, we offer competitive rates to fit your needs. Contact Rodies Inc. today for more information or submit an online application to get a fast, no-obligation quote.

FAQs

What are the first steps to start a trucking company in California?

You need to create a business plan, choose a legal structure (LLC, Corporation, etc.), and register your business with the California Secretary of State. After that, apply for an EIN from the IRS.

 

Do I need a commercial driver’s license (CDL) to start a trucking company in California?

If you will personally drive the truck, yes, a CDL is required. However, if you plan only to manage the company and hire drivers, you don’t need one yourself.

 

How much insurance is required for a trucking company in California?

FMCSA requires at least $750,000 in liability coverage. Cargo insurance is often required by brokers/shippers. If you hire employees, you must also carry workers’ compensation insurance.

 

Why choose a trucking company in California that partners with a freight broker?

Partnering with a freight broker gives trucking companies access to consistent loads, better rates, and reliable payment processing. It also reduces the administrative burden by handling paperwork, compliance, and communication between shippers and carriers.