Starting a Trucking and Hot Shot Business in Texas

Rigs are sold through classified advertisements, just like cars.

"Hot-shot" trucking companies are hired when there are tighter than usual deadlines. Companies often pay more for hot-shot trucking services because they want specifics followed or tight deadlines met in ways larger freight trucks can't accomplish. Auto-transport companies hire hot-shot drivers to help transport vehicles when families are moving from location to location or want their cars with them while they vacation. Oil-and-gas companies hire hot-shot truckers to transport oil during refinery emergencies.

Things You'll Need

• Worker's compact
• Truck
• Business plan

Instructions

1. Choose a business structure. Most common choices are sole proprietorship for individual business owners, partnerships for two or more owners, limited liability company for multiple owners who do not want to incur corporate taxes and corporation for business owners who want to eliminate personal liability for corporate actions.

2. Get an employer identification number from the Internal Revenue Service. Apply online and complete IRS form SS-4.

3. Apply for a state tax permit. Limited Liability Companies and corporations are required to pay franchise tax in the state of Texas. Visit the Texas Comptroller of Public Accounts website to complete forms.

4. Apply for worker's compensation insurance. Register for Texas State unemployment coverage. You must apply 10 days after your business is registered even if you are a sole proprietorship. Log in to the Texas Workforce website. Answer a series of questions.

5. Purchase or lease a truck for the kinds of hauls you will specialize in. Research available transport vehicles. Choose the size based on the types of hauls that you want to specialize in. Compare gas mileage statistics. Calculate the advantages of leasing versus buying, with your expected income as the main variable.

6. Purchase a laptop with wireless Internet connection so that you will be able to maximize the efficiency of your business. For example, you pick up a load in San Antonio that you deliver to Amarillo. While you are in transit, you can schedule a pick-up for shipments headed out of Amarillo.

7. Find loads. Sign-up for online load boards. Create a profile for your hot-shot trucking business. Uship is a popular load-finder popular with Texas truckers.

References

• IRS: Employer ID Numbers
• Texas Comptroller of Public Accounts; WebFile
• Texas Workforce

Resources

• Transportation Labor Issues and Regulatory Reform; James Peoples, Wayne Kenneth Talley; 2004