Did you know running a trucking business without following all the laws can get you slapped with a $415K fine?

Daniel White, who started Bigger Better Movers in 2017, found that out the hard way. But now, his box truck business makes around $1.5 million annually.

In our extended podcast interview, he shares the lessons he learned from running an insurance company, starting a failed tech company, and ultimately building Bigger Better Movers without any experience in the box truck industry.

We compiled Daniel’s tips and strategies, as well as mistakes to avoid when starting a box truck business. By the end of this blog, you’ll know how to choose the right niche, find customers, and implement the business systems that led to his success.

You can either read from start to finish or click on any of the links below to jump to the section that interests you:

Learn About the Box Truck Industry

What is a box truck business?

A box truck business transports and delivers freight, cargo, and other items in an enclosed truck. Box trucks used in the trucking industry range from 10 feet to 26 feet in length, and each size of truck has volume and weight limitations. The trucks can either be owned or leased.

Bigger Better Movers operates in Oklahoma City and Tulsa, offering services including:

• Residential moving
• Commercial moving
• Local moving
• Long-distance moving
• Packing
• Labor only (e.g., unloading and organizing)
• Furniture assembly
• Restoration solutions

Daniel told us:

Keep reading to learn more about some of the niches you might want to consider.

Box Truck Business Ideas

Many box truck drivers work in the transportation and logistics industry, but there are plenty of other ways to use reliable box trucks. The sections below describe popular businesses that use box trucks.

Idea #1. Food Trucks

Box trucks are commonly used as food trucks. Learn how one couple used a box truck to make $417K annually as a food truck business:

Idea #2. Moving

Many local moving companies use box trucks. Daniel is a mover who makes $120K in monthly revenue. He recommends:

Check out our interview with him to learn how to start your own box truck business:

Idea #3. Junk and Waste Removal

Box trucks can also be used to haul junk away. Kyle Landwehr explains how he attracts customers and how to turn junk hauling into a lucrative business model with your own box truck:

Idea #4. Delivery

Most businesses have delivery needs, and many of them are willing to pay external companies to help them.

Idea #5. Mobile Advertising

Box trucks can be used for mobile advertising in addition to their core services.

Idea #6. Mobile Grooming

You can retrofit a box truck to use as a hair salon, dog grooming business, or mobile vet.

Idea #7. Commercial Truck Rental Services

U-Haul is probably the most famous box truck company. They rent their commercial box trucks to ordinary people for a daily fee plus mileage charges.

Check out our blog on mobile businesses for more ideas about how to make money with a box truck.

Do you need a commercial driver’s license to drive a box truck?

Normally, you don’t need a commercial driver’s license (CDL) to drive a box truck in the United States as long as the gross vehicle weight rating (GVWR) is less than 26,000 pounds.

Any box truck, van, or commercial vehicle with a GVWR over 26,000 pounds must have a Class A CDL. There may also be other scenarios where your box truck business will require a CDL. For instance, you’ll need one to haul hazardous materials or tow more than one vehicle.

You can learn more about commercial driver’s licenses on the Federal Motor Carrier Safety Administration (FMCSA) website or by contacting your state’s Department of Motor Vehicles.

How much do box truck owners make?

According to Daniel, box truck owners can make great money. Some years, he earns over $120K per month in revenue. He also gave us his current-year numbers:

Unlike most small business owners, he is mostly hands off with the box truck business at this point.

That means a thriving box truck business owner can make $204K per year in profit without driving a box truck. A box truck owner-operator can make even more, with the average owner-operator making $323,780 after expenses, according to Indeed.

How much does it cost to start a box truck company?

You can start a box truck company for approximately $12K. Daniel explained:

The costs to start a box truck business will vary depending on your location, credit score, and the size of the box truck.

Next, we’ll explain the process to start a box truck company.

Step #1. Write a Box Truck Business Plan

When you’re planning to start a new truck company, approach it the same way you would when looking for a new job. Having a comprehensive trucking business plan will guide you as your box truck company grows and changes.

An effective business plan will outline your goals for the future and explain why your business model will succeed. It’s also a good way to identify potential challenges and figure out how you’ll overcome them.

Check out our interview with Mike Andes to learn more about how to write a business plan:

You can also download our business plan template, which will help you start planning.

Step #2. Establish Your Trucking Company

Running your box truck business under a trucking LLC, or limited liability company, provides a clear separation between your personal assets and business liabilities.

In addition to protecting your personal property and business operations, you’ll qualify for other legal, tax, and operational benefits by registering as an LLC. Trucking companies will need to follow these steps to create a business entity:

1. Go to the secretary of state’s (SOS) website: To become an LLC, visit your state’s SOS website and register there. Use this site to find your local SOS website.
2. Choose a business name: You’ll want a unique name to help potential customers remember you. Check out our business name generator for more ideas.
3. Designate a registered agent: If you don’t live in the state you registered in, you’ll need a registered agent who is physically present and will sign for legal documents. Companies such as Northwest Registered Agent can help you get a registered agent and start your business.
4. Get an employer identification number (EIN): You’ll need an EIN from the Internal Revenue Service to file taxes and get a business bank account.
5. Pay the state fee: Each state has a fee to register a business. Most are less than $500, but it may be extra if you use a service.

There are other business entities, like a sole proprietorship, partnership, or corporation, that you could consider when starting a box truck business.

Step #3. Get Business Licenses and Permits

Before starting a box truck business, most state and local authorities require you to get business licenses and permits. There are over 150,000 business license jurisdictions, all with their own requirements. You’ll have to contact your local Small Business Administration office or a licensed business law attorney to get the best information possible.

Box truck businesses may need:

• Commercial driver’s license and any required endorsements: Box truck drivers don’t normally need a CDL, but you should check to make sure before launching your business.
• U.S. Department of Transportation number: The FMCSA utilizes the unique USDOT numbers assigned to trucking companies for identification during inspections, audits, and investigations. You’ll need one if you travel over state lines.
• Operating Authority (MC number): Depending on the nature of your business operations, you may need to obtain multiple MC numbers for your trucking venture. Learn more about the application at this FMCSA resource.
• A BOC-3 filing: Every motor carrier, broker, and freight forwarder must submit a blanket of coverage form that tells the FMCSA the point of contact in each state.
• International Registration Plan credentials and International Fuel Tax Agreement decal: Trucking companies that provide services across multiple states must secure these credentials and decals for their vehicles.

Managing a business involves keeping track of time-sensitive filing obligations, which span from quarterly International Fuel Tax Agreement tax returns to multi-year renewals for CDLs.

Neglecting your regulatory obligations can result in penalties or the inability to continue operating. This also extends to abiding by your state’s income reporting mandates, which is required to maintain your business registration.

Step #4. Buy a Box Truck or Enter a Box Truck Lease

Every successful box truck business must buy, rent, or lease a box truck. Consider which option works best for you, as each has pros and cons. Kyle Landwehr recommends:

Check out the table below to learn more:

Step #5. Get Trucking Insurance

Starting a box truck business requires a lot of insurance. You’ll want to have at least the following coverage before you start a trucking business:

• Primary liability insurance
• Cargo insurance
• Physical damage insurance
• Passenger accident insurance
• Workers’ compensation

Daniel’s biggest mistake when starting his box truck business involved insurance:

For more information, Simply Business can help you find low insurance rates in the trucking industry.

Step #6. Manage and Track Business Finances

Managing your finances is an essential aspect of running a thriving box truck business. Transportation companies like box truck businesses might receive payments weeks or months after completing delivery services. That means your box truck delivery business needs to follow box truck industry best practices:

• Use bookkeeping software: You’ll want accounting tools like QuickBooks to manage and monitor your company’s revenue and expenses. You might also want to hire a bookkeeper or accountant.
• Understand payment terms: Shipping contracts often have net-30 or net-90 payment terms. This means you won’t get paid until 30 to 90 days after you complete your services and send an invoice. If you aren’t aware of these delays, your business could grind to a halt.
• Record business expenses: Delivery services have lots of expenses, and you need to keep track of them all. Keeping your receipts and adding them to your accounting software can either be done manually (by taking a picture) or by bank integration.
• Get a business bank account: Separate your personal and business finances. Establish distinct bank accounts for business and personal transactions. Otherwise, you might spend the money you need to keep your business running.

Daniel explained that every successful business should pay close attention to the cost per customer:

While box truck companies don’t spend as much for each customer, you can still expect to spend over $100 to get each client.

Step #7. Find Loads for Box Trucks

A box trucking business will need to find local businesses, moving services, freight brokers, and other potential clients.

You might find clients on load boards like:

• DAT load board has five plans ranging from $45 to $295 monthly.
• Truckstop has three plans ranging from $39 to $149 monthly.
• Direct Freight offers a free plan and a premium account that costs $34.95 per month.
• Trucker Path has three plans that cost $19.99, $29.99, or $89.99 per month.
• 123Loadboard offers $35, $45, and $55 plans.

Alternatively, you can use more traditional marketing strategies like Google Ads, social media, and search engine optimization to start marketing your box truck company. Daniel really appreciates Google Ads:

If you want to learn about Google Ads, check out our Google Ads for Beginners course with the UpFlip Academy.

Amazon also works with box truck businesses. Keep reading to find out how to start a box truck business with Amazon.

How to Make Money With a Box Truck With Amazon

Amazon Relay is a service where the company outsources its deliveries to other carriers. You can deliver for Amazon Relay if you have, among other things:

• 26-foot box truck
• $1M to $2M general liability policy
• $1M auto liability policy with $50K trailer coverage
• $100K cargo coverage
• $100K employer liability insurance
• Workers’ compensation in all jurisdictions
• 180-day-old DOT number
• Authorization for property and for hire
• Minimum carrier and safety ratings

Box trucks above or below 26 feet in length can’t drive for the service. Learn more about Amazon Relay on its FAQ page.

Are you ready to start a successful box truck business?

At this point, you should understand how to open a trucking company. We’ve discussed considerations for truck driving companies, including:

• How much is a box truck?
• How to get a box truck
• How to make money with a box truck
• How much does it cost to start a box truck business?
• Do you need a CDL to drive a box truck?
• Is a box truck business profitable?

It’s up to you to start making money with the advice Daniel provided. Whether you’re starting a trucking company with just one truck or you have a full fleet of them, you can make a great living.

What part of box trucking would you like to know more about?