How to Start a Box Truck Business in 13 Steps

Here are the most important aspects of starting a box truck business:

1. Equipment and trucks — Depending on the cargo you plan to transport, you will need a box truck fleet of various sizes. You will also need dollies, hand trucks, moving straps, and safety equipment.
2. Get licenses and permits — You will need a CDL or commercial driver’s license for you and all drivers if the box truck exceeds a certain size or weight. You will also need a USDOT number and Motor Carrier Operating Authority (MC Number). Some states may require additional permits, especially if you are transporting special commodities or operating in metropolitan areas.
3. Hire professional drivers — Find professional, licensed, and experienced drivers who have CDL and medical certifications.
4. Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
5. Legal business aspects — Register for taxes, open a business bank account, and get an EIN.
6. Get insurance — You’ll need liability and cargo insurance to protect your business and meet legal requirements.
7. Maintenance tools — These are for basic repairs and upkeep of your trucks.
8. Online presence — Take your box truck business online and get listed on Google Business and Yelp to optimize your listings and encourage reviews.

Step 1: Decide if the Business Is Right for You

Pros and Cons

Every business has pros and cons that you need to carefully consider before deciding if a box truck business is the right path for you.

Box truck industry trends

Over the past decade-plus, the industry has seen a steady increase in the use of medium-duty trucks like box trucks, as opposed to 18-wheelers, due to greater demand for shorter-distance deliveries. This presents a huge opportunity for the box truck entrepreneur.((https://www.truckpartsandservice.com/economic-trends/indicators/article/14991095/trucking-industry-sees-influx-of-mediumduty-vehicles))

The US trucking industry is greatly influenced by the e-commerce market, which is expected to grow from more than $757 billion in 2024 to over $1.1 trillion by 2029, according to market research firm Statista. This means that trucks capable of making a lot of deliveries in a limited area in a certain timeframe will be in great demand.((https://www.statista.com/statistics/272391/us-retail-e-commerce-sales-forecast/))

Industry Size and Growth

• Industry size and past growth — The American Trucking Association (ATA) valued the US trucking industry at more than $940 billion in 2022.((https://www.trucking.org/economics-and-industry-data))
• Growth forecast — The ATA predicts trucking revenues to amount to $1.51 trillion in 2034.((https://www.trucking.org/news-insights/new-forecast-projects-continued-growth-truck-freight)) Globally, the box truck industry is projected to expand at least 5.4% yearly through 2032.((https://dataintelo.com/report/global-box-trucks-market/))
• Number of businesses — According to the US Department of Transportation, about 750,000 carrier companies owned or leased at least one truck as of 2024.((https://www.trucking.org/economics-and-industry-data))
• Number of people employed — More than 3.5 million truck drivers were employed in the US in 2023, according to the ATA.((https://www.trucking.org/economics-and-industry-data))

Trends and Challenges

Trends

• Strong ecommerce industry impacts positively on box truck market
• Increasing use of technologies to track shipments, optimize routes
• Declining length of haul and high demand for last-mile delivery services

Challenges

• Shortage of commercial truck drivers
• Rising fuel prices
• Extreme weather conditions

What Kind of People Work in Trucking?

• Gender — Almost 92% of truck drivers employed in the US are male, while 8% are female.((https://www.zippia.com/truck-driver-jobs/demographics/#gender-statistics))
• Average level of education — Nearly half (48%) of truck drivers finished high school.((https://www.zippia.com/truck-driver-jobs/education/))
• Average age — The average age of a truck driver is about 48 years old.((https://www.zippia.com/truck-driver-jobs/demographics/#age-statistics))

How Much Does It Cost to Start a Box Truck Business?

Startup costs for a box truck business range from about $6,500 to $14,000. These numbers include either buying a used truck for as little as $5,000, or putting a 5–10% down payment on a new truck, which could cost as much as $50,000.

You’ll need a handful of items to launch your box truck business successfully. Here’s a list to help you get started:

• Box truck with shelving
• Trailer and hitch
• Furniture pads and dollies

Startup Costs	Ballpark Range	Average
Setting up a business name and corporation	$150–$200	$175
Licenses and permits	$100–$300	$200
Insurance	$100–$300	$200
Business cards and brochures	$200–$300	$250
Website setup	$1,000–$3,000	$2,000
Down payment on a truck or the purchase of a used truck	$5,000–$10,000	$7,500
Total	$6,550–$14,100	$10,325

How Much Can You Earn From a Box Truck Business?

Prices for box truck deliveries vary greatly depending on the size and value of the load. Working by yourself, you can expect a 70% profit margin and assume an average load price of $200.

In your first year or two, you could work from home and do 10 deliveries per week, bringing in about $100,000 in annual revenue and $70,000 in profit. As your brand gains recognition and you add trucks, hire drivers, and rent an office, you might do 50 loads per week, but your margin would fall to around 20%. Thus, your annual revenue would be over $500,000 and your pre-tax profit would be around $100,000.

These numbers are in line with Amazon’s delivery program Amazon Relay, which offers average salaries running from about $50,000 to $150,000. That’s another opportunity you might consider, though the hours can be long.

What Barriers to Entry Are There?

There are a few barriers to entry for a box truck business. Your biggest challenges will be:

• Getting clients — You’ll need to stand out to attract work
• Box truck — You’ll need to find and finance a reliable vehicle

Step 2: Hone Your Idea

Now that you know what’s involved in starting a box truck business, it’s a good idea to hone your concept in preparation to enter a competitive market.

Research the demand for box truck services in different areas. Look for regions with a high concentration of businesses that require frequent shipping and delivery services, such as manufacturing, retail, or construction industries.

Choose a location with good road connectivity and easy access to major highways and interstates. This ensures efficient travel times and reduces transportation costs.

Being close to your client base can significantly reduce transportation times and costs. Consider the geographic distribution of your potential clients and try to position your business centrally to them.

Why? Identify an Opportunity

Research box truck companies in your area to examine their services, price points, customer reviews, and what seems to be most in demand. A location with fewer competitors might offer more opportunities, but also consider the presence of competitors as a sign of a healthy market.

This is targeting a niche market by specializing in a certain aspect of your industry. This could jumpstart your word-of-mouth marketing and attract clients right away.

What? Determine Your Services

Since a box truck has so many potential uses, you may want to choose which services you’ll offer. You could:

• Deliver for local stores
• Provide moving services
• Haul junk from basement or garage cleanouts
• Remove items from estates
• Work for a catered food delivery
• Work as advertising, as a mobile billboard
• Partner with a logistics company
• Add a snowplow to boost work in winter

How Much Should You Charge for Box Truck Services?

Box truck delivery prices vary by weight and value of the load. Often, there is a minimum rate of $120 and the weight and value are used to calculate the final price. You should check the prices of box truck companies in your area to make sure yours are competitive. Before you hire staff, your main costs will be for the truck and gas. 

Once you know your costs, you can use our profit margin calculator to determine your markup and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify Your Target Market

Your target market will depend on what types of services you want to offer. If you offer a delivery service for local stores, you can find business owners on sites like LinkedIn.

Where? Choose Your Business Premises

When choosing a physical location for storing your box trucks, look for an area with ample space for parking and potential expansion. Ensure the location complies with local zoning laws for commercial vehicle storage. Additionally, consider the security of the area to protect your vehicles and equipment from theft or vandalism. Lastly, factor in the cost of leasing or purchasing the property to ensure it fits within your budget constraints.

Step 3: Brainstorm a Trucking Company Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “logistics” or “trucking,” boosts SEO
• Choose a name that allows for expansion: “Universal Logistics Solutions” over “Refrigerated Trucking Solutions”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Box Truck Business Plan

Here are the key components of a business plan:

• Executive summary — A concise summary outlining the key points of the box truck business plan, including its mission, goals, and potential for success
• Business overview — An introduction to the box truck business, highlighting its structure, location, and the problem it aims to solve in the market
• Product and services — Detailed information on the specific services offered by the box truck business, such as transportation, logistics, and any additional value-added services
• Market analysis — A comprehensive examination of the target market, identifying customer needs, market trends, and potential opportunities for the box truck business
• Competitive analysis — An evaluation of competitors in the box truck industry, analyzing their strengths, weaknesses, and positioning to determine the business’s competitive advantage
• Sales and marketing — A strategic plan outlining how the box truck business will promote its services, attract customers, and drive sales
• Management team — An introduction to the key individuals responsible for the box truck business’s success, detailing their roles, expertise, and contributions
• Operations plan — A detailed plan describing the day-to-day operations of the box truck business, including logistics, fleet management, and key processes
• Financial plan — A comprehensive overview of the box truck business’s financial projections, including revenue forecasts, expenses, and a break-even analysis
• Appendix — Supplementary materials, such as additional financial data, market research details, or any other relevant information that supports and enhances the box truck business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose Where to Register Your Company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to a box truck business.

If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state.

Choose Your Business Structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your box truck business will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

• Sole proprietorship — The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General partnership — Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) — Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corporation — Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corporation — This refers to the tax classification of the business but is not a business entity. Either a corporation or an LLC can elect to be an S Corp for tax status. In an S Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number or EIN. You can file for your EIN online, or by mail/fax. Visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans — This is the most common method, but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans — The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants — A handful of financial assistance programs help fund entrepreneurs. Visit Grants.govto learn which might work for you.
• Venture capital — Offer potential investors an ownership stake in exchange for funds, keeping in mind that you would be sacrificing some control over your business. This is probably not an option when you’re just starting out, but when you’re ready to grow your business to a large scale it might be available.
• Friends and family — Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding — Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal — Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a box truck business. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for a Box Truck Business Licenses and Permits

Starting a box truck business comes with significant regulatory requirements.

First, you’ll need to obtain a commercial driver’s license from your state DMV. You’ll also need a Department of Transportation number and a Motor Carrier Authority number, both of which you can get by registering with the Federal Motor Carrier Safety Administration (FMCSA). Finally, you’ll need to complete a unified carrier’s registration, and if you plan to drive to other states or Canada, an International Registration Plan tag and an International Fuel Tax Agreement decal.

Federal regulations, licenses and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your box truck business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability — The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business property — Provides coverage for your equipment and supplies.
• Equipment breakdown insurance — Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation — Provides compensation to employees injured on the job.
• Property — Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto — Protection for your company-owned vehicle.
• Professional liability — Protects against claims from clients who say they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) — This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential Software and Tools

Being an entrepreneur often means wearing many hats — from marketing to sales to accounting — which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You can use industry-specific software, such as ShipWell, TruckingOffice, or Dump Truck Dispatcher, to help you manage your scheduling, billing, bookkeeping, and more.

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, FreshBooks, and Xero.
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences of filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop Your Website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Marketing

Here are some powerful marketing strategies for your future business:

• Local SEO for logistics — Optimize your website with relevant logistics and delivery keywords to boost your visibility in local search results.
• Targeted social media ads — Use LinkedIn for B2B outreach and Facebook for local advertisements to highlight your services and customer success stories.
• User-friendly booking interface — Design your website to allow easy access to quotes and bookings, featuring clear calls to action like Get a Quote.
• Professional branding — Brand your trucks and crew uniforms with your logo to transform them into moving advertisements.
• Direct mail campaigns — Distribute informative brochures to local businesses to promote your logistics capabilities.
• Email marketing — Regularly update potential clients with newsletters about new services, fleet additions, and special offers.
• Content marketing — Maintain a blog to share insights on logistics, supply chain management, and the benefits of your services.
• Networking events — Participate in business expos and trade shows to network with potential clients and showcase your services.
• Business referral programs — Encourage existing clients to refer new businesses with incentives like discounts or added services.
• Partnerships with local businesses — Develop special rate packages or services for local businesses needing regular logistics support.
• Sponsorships and community support — Increase your local visibility by sponsoring events or local sports teams.
• Influencer collaborations — Partner with industry influencers to enhance credibility and reach a broader audience.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your box truck business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your box truck business could be:

• A truckful of care for your deliveries
• We haul anything, anytime
• Need a quick move? Lightning-fast moving service

Networking

You may not like to network or use personal connections for business gain but your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a box truck business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in the trucking industry for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in box trucks. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a box truck business would include:

• Drivers — packing/unpacking loads and delivering
• Dispatcher — taking calls, scheduling services
• General manager — managing staff, accounting
• Marketing lead — SEO strategies, social media, other marketing

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Box Truck Business — Start Making Money!

With the sharp growth in online sales and the trend toward local distribution centers, it’s a great time to jump into the box truck business. It’s a relatively low-cost business to enter, yet with great profit potential. With the trucking industry worth more than $940 billion, there is plenty of money to be made. With just one truck, you can offer a multitude of services, or deliver for Amazon and make up to $200,000 a year.

Now that you’re armed with the necessary information, you’re ready to start your entrepreneurial journey and build a successful box truck business.

FAQs

How much can you make owning a box truck?

If you work full-time, you can make a healthy profit with just one truck. As a solopreneur you could make $70,000 a year or more. A box truck offers a world of opportunities.

How can I start a box truck business with no money?

It would be difficult to do unless you already have a truck! You can get a used truck for about $5,000 – $10,000 or a new one for $40,000 – $50,000, but you can get financing. You still, however, would probably need a down payment of 5% to 10%.

How can I make money with a box truck?

There are many possibilities. You can make deliveries for local stores, provide moving services, deliver catered food, do junk hauling, or even work with the Amazon Relay program. You could do a combination of any of those to stay busy all the time!

How can I get steady work with my box truck?

You can work on a contract basis with a logistics company, which will provide you with orders for a percentage of the revenue. You could become a mover. You could work for Amazon, or add a snowplow and offer your services to local businesses and homeowners in winter. The possibilities are endless.

What are the sizes of box trucks?

Box trucks come in various sizes, with Class 3 trucks typically 12 to 16 feet in length, Class 4 trucks 16 to 20 feet, Class 5 trucks 20 to 26 feet, and Class 6 trucks often between 26 and 33 feet.

Can a driver sleep in a box truck?

Some box trucks are equipped with a sleeper compartment or can be modified to accommodate sleeping arrangements. However, drivers should adhere to applicable laws regarding rest and sleep periods to ensure safety and comply with transportation regulations.

What are the common uses for box trucks in various industries?

Box trucks are commonly used across various industries for tasks such as moving and logistics, retail and e-commerce deliveries, converting into mobile food trucks for catering, transporting tools and supplies to construction sites, and customizing as mobile marketing vehicles for events and promotions.

How do I establish a reliable network of clients and customers for my box truck services?

Identify industries that often use box truck services, such as logistics, retail, food, and construction, and find potential clients within these sectors. Attend industry events, join business organizations, and network with professionals in related fields to gain referrals and establish partnerships for business growth.