If you want to start a transportation business, you need to determine what type of transportation you want to do. Then you can choose your business name, entity structure and write a business plan.
Next, you need to register your business and get an employee identification number (EIN). Finally, before you can get your business moving, the last step is to get all the licenses and permits you need.
Don’t worry; we’re going to break all of this down in this guide on starting a transportation business. By the end of this article, you’ll be ready to get to work and get your business on the road. Let’s dive in.
Choose the Type of Transportation You Want to Do
Transporation services range from taxi companies to cross-country trucking. Other types of transportation companies include:
- Car rentals
- Limousine services and rentals
- Bike or scooter rentals
- Moving company
- Medical transportation
- School bus companies
The type of transportation you get into could depend on what vehicles you already have at your disposal. If you are still deciding, you should do some market research to see what is popular or needed in your area.
Pick Your Business Name and Entity
Once you’ve narrowed in on your type of transportation business, you can choose the name and entity. Are you starting a business with a partner, or will you be the sole proprietor?
A sole proprietorship is the most common type of business in the U.S.; however, it puts a ton of liability on the owner. If you want to protect yourself from debt and lawsuits, you may want to look into a limited liability partnership or limited liability company (LLC).
The entity you choose will affect your business name, so it’s important to pick the entity type early. When it comes to choosing a name, make sure there aren’t already other companies in your area with the name you like. You should also make sure your name is available as a web domain for your future website.
Writing a Business Plan
You want your business plan to be well-written and researched, so give yourself plenty of time on this step. You will use your plan to secure funding from investors and banks, so it must be effective.
A business plan should include market research, business strategy, marketing and pricing plans, and financial projections. For more resources on writing a business plan, join the School For Startups.
Business Registration and Licenses
Once you have a solid business plan, you can officially register your business and get an EIN. You can register your business at the Secretary of State website and get your EIN free from the IRS.
Transporation businesses require extra licenses and permits as well. Check with your state and county to see what you need since the regulations are different based on your location.
Learn More About How to Start a Transportation Business
After you complete all of these steps, you can officially open your business bank account, acquire funding, and hire employees. Then you’ll be ready to get on the road.
If you think you need more help starting a business, we recommend signing up for the School For Startups. We’ll teach you exactly how to start a transportation business that succeeds. Find more info and apply today here.