You should do this to keep your business and personal finances separate. Once you have an LLC set up and have your EIN, your next step in starting a hotshot trucking business is to open a business bank account. View Webinar Step #6: Open a business bank account. Learn how to maximize profits with the Truckstop Load Board. If you have questions, check with a financial planner. You can also offer yourself benefit packages and even contribute more to your 401k through your company than you can as an individual. An alternative to using your social security number lets you pay yourself wages and other employees if needed. Step #5: Obtain an EIN.Īn employer identification number, or EIN, is a number issued to your company by the IRS. This helps you avoid the double taxation you will encounter in some states with a C-corp or another structure. You can file LLC paperwork with the Secretary of State in most states, and most have online options in place. An LLC is the simplest way to organize a business and is best for most hotshot businesses with pass-through income. You need to have a limited liability corporation (LLC) or other company structure to protect yourself from liability claims. The rules vary by state, and there are various driving schools and testing options. For instance, you might need a hazmat certification to carry medical loads. These licenses come in various levels, depending on the type of vehicle you will be driving and the load you will carry. You will need to get a commercial driver’s license if you don’t already have one. Step #3: Get a commercial driver’s license (CDL). You can always pivot, but choose an industry that you’re passionate about from the start. Deciding on your specialization may involve some trial and error at first until you decide what works best for you in the lanes you want. The more you specialize, the easier it will be for customers to refer you to similar work. Or, you could have small refrigeration trucks or trailers to handle medical or perishable cargo. The beauty of starting a hotshot business is that you can choose to haul only lightweight cargo.
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