Are you looking to start a hot shot business? It's an exciting venture, but it's important to understand the steps you need to take to get your business up and running. From setting up your finances to finding your first load, here's a step-by-step guide to starting a successful hot shot business. First, you'll need to set up your company with the proper documentation for the IRS and your state. This includes filing for an Employer Identification Number (EIN) and completing the IRS Form SS4.You'll also need to get ready for the Department of Transportation (DOT), get your truck and trailer, and get insurance and protection. Once you have all of these pieces in place, you can use hotshot load charts to find your first and each of the loads. This will help you get on the road and start earning money. The next step is to make a specialization choice.
If this is your first time transporting cargo, you may not have the equipment needed to handle a variety of loads. Consider what type of cargo you want to transport and make sure you have the right equipment for it. You may also want to provide benefit packages and contribute more to your 401(k) through your employer than as an individual. If you have any questions about this, consult a financial planner. Are you wondering how much it will cost to start a hot shot business? We did some research and, based on three reliable sources (LTL Rig, Autotrader, Step By Step Business), we calculated the following breakdown of the initial costs:
- White van with trailer: $20,000
- Insurance: $2,000
- Protection: $1,000
- DOT registration: $500
You may also need to obtain a Transportation Worker Identification Credential (TWIC) in order to expand the types of cargo you can carry. Finally, keep in mind that with a successful hot shot business, your revenue potential will vary depending on how much you drive and the rate per mile you can generate.
