IF you want to start a transportation business, you need to decide what type of business you are looking to create.
You have to decide what type of transportation business you’re looking to create. For example, you can create a taxi service, a bike rental service, limo service, owner/operator trucking, moving company, specialized transportation, marine transportation, medical transportation, air transport, and more. The type of company you are going to establish should be determined – based on, the need of your area, and the competition in the area. Once you decide what type of transportation business you want to run, you’ll need to build a plan and figure out how you’re going to accomplish it.
Determine what type of business structure you want
Do you want to run a sole prop, llc, or corporation? Each of these has advantages and disadvantages. You must do your research and figure out which one is right for you. They each have different requirements to fulfill.
Get a federal tax ID number
If you’re running a sole prop, or a corporation of one, you can use your SSN. If your business is getting larger, or will be larger than just yourself, you must get a federal employer ID number – EIN. This lets you register your business, and it’s the number used to setup your tax filing status federally. Any employees you hire, must use this number when filing their taxes. It identifies your business to the federal and state government.
Write a business plan for your transportation business
The business plan should include information like your companies name, the type of business you’re creating, where it’ll be located. In addition, you’ll need to create a name for the business, and make sure it’s available in your state. You need to register this business name with the Secretary of State.
Your transportation business plan should include things like:
- Goals for the business
- How you’re going to deliver the services
- Your finances
- Your expenses
- Your labor costs
- Maintenance costs
- Profit goals
- Marketing strategy
- Names of managers, and their information
The business plan can change over time, but it’s important to have it so you can accurately convey your objectives to anyone who wants to invest, or lend you money.
Get your finances in order
You will need money to begin the business. To obtain a business loan, you need to show lenders a solid business plan. This includes what you expect you will need to start your business like a vehicle, etc.
Get your business license
You should check with your local state government to determine what type of license you need to run your business legally. You might need to register the business with the Secretary of State as well. You should check your states website and don’t be afraid to call their office if needed.
Misc things you need to start the business
When you begin the business, you will need to make sure that your vehicle has everything it needs for the business. The act of creating a business plan is instrumental in helping you understand what you need – what you have – and if you’re truly ready to begin your business.
Insurance
You will need to look into maintaining insurance, both for yourself, your drivers, and vehicles. In addition you need to ensure that all of your drivers and vehicles are properly insured, and have the right insurance. This might mean getting workers compensation for your employees, or cargo insurance, if you ship. It depends on what type of business you are looking to create.
Equipment
Your transportation business plan should include all the equipment you will need , such as vehicles, wheelchair lifts, printers, fax machines, and more. You should check your state’s requirements for the equipment needed to run a business such as the one you’re looking establish. Some states require a certain number of vehicles in order to create a taxi fleet.
Employees
If you have to hire employees, you will need to make sure you hire them in accordance with the local laws. For example, you might need to establish hiring practices which aren’t discriminatory. You need to understand the requirements of your state.
There’s a lot of moving parts involved in running a transportation business. You should do as much research as possible before starting this journey. Once you’re ready to begin, you should file the necessary paperwork, and create a business plan so you can start attracting investment capital.
