Hotshot Trucking Startup Guide 2023

As a hotshotter, you will need to know how to deliver small, time-sensitive loads. 

You’ll also need to have a super-duty pickup with a trailer that can haul anything from agricultural equipment to heavy machinery. 

And, you must not be afraid of long hours, tight deadlines, or tough customers.

These are the ground rules once you get started in hotshot trucking. But, do you know how to START your own hot shot business? 

If not, don’t worry. We’ve got you covered. This is the ultimate hotshot trucking startup guide for 2023.

So, let’s get started!

Table of content: checklist of hotshot trucking

How To Start Hotshot Trucking Businesses? (STEP-BY-STEP)

Wandering how to start hotshot trucking? Well, let’s come to know the key steps to starting a hot shot trucking business

Just follow the steps below and you’ll surely succeed as a new hotshot trucker. You can also use these steps as a hotshot trucking startup checklist.

Step 1: Understand the local market

Talk to other hotshot truckers, or visit local freight brokers and shippers to get a sense of the market conditions. 

For example, if you live in an area with a lot of construction or agricultural activity, you will find more opportunities for hotshot trucking than in an urban area. It’s because cities rely less on hotshotters for heavy equipment or materials delivery.

Step 2: Get a commercial truck driving license (CDL)

In the US, you will need a Class A CDL if your truck and trailer weigh more than 26,001 pounds combined or if you haul hazardous materials. If you will carry under 14000 pounds load then you will require non CDL driving license.

Read another blog post to know non CDL requirements for hot shot trucking

To get a CDL, you will have to pass written and practical tests that cover topics such as safety rules, vehicle inspection, driving skills, and more. You may also need additional endorsements such as air brakes or tank vehicles depending on your load type.

Step 3: Get equipment

For equipment, you will need a reliable and powerful truck (and a trailer). They should be able to handle any load within your weight limit. And, they must also meet the safety standards of all states. 

Equipment needed for hotshot trucking business are as follows:

• Class 3 medium-duty trucks with a weight limit of 10001-14000 lbs

• Class 4 medium-duty trucks with a weight limit of 14001-16000 lbs

• Class 5 medium-duty trucks with a weight limit of 16001-19500 lbs

Some common types of trailers needed for hot shot trucking are:

• Bumper pull trailers
• Gooseneck trailers
• Flatbed trailers 

You can find a more in-depth discussion on the equipment needed to become a hotshotter right here.

Note: If you are running low on capital, you can also take equipment on lease from online or local dealerships.

Step 4: Select a name for your hotshot trucking company 

You should pick a name that reflects your services, values, and personality. You should also check the availability of the name on online platforms such as domain names, social media handles, and trademarks.

Step 5: Set up an office

You will need a place to run your hotshot trucking business operations (accounting, invoicing, scheduling, customer service, and more). Conversely, you could set up a home office in a spare room or garage if you want to save money on rent.

Step 6: Make your hotshot trucking company legally compliant

 You will need to register your business with the appropriate authorities and obtain the necessary licenses.

 Some of the common requirements are:

• Obtaining a federal employer identification number (EIN) from the IRS for tax purposes.

• Registering your business name and structure (such as LLC or sole proprietorship) with your state’s secretary of state office.

• Obtaining a USDOT number and an MC number from the Federal Motor Carrier Safety Administration (FMCSA) if you plan to operate across state lines or haul hazardous materials.

• Getting commercial liability insurance and cargo insurance to protect yourself from lawsuits and damages.

Step 7: Get your medical card

You will need to obtain a medical card that certifies that you are physically fit to drive a commercial vehicle. You will have to carry your medical card with you whenever you drive and submit a copy of it to your state driver licensing agency (SDLA). (source)

To get a medical card, you will have to undergo a physical examination by a certified medical examiner who is listed on the National Registry of Certified Medical Examiners. 

The medical examiner will check your vision, hearing, blood pressure, blood sugar, and other health factors. And, the medical card will be valid for up to 24 months depending on your health condition. (source).

Step 8: Get an insurance card

You will need to get an insurance card that proves that you have the required liability and cargo insurance for your hotshot trucking business. And, you will have to carry your insurance card with you whenever you drive and show it to any law enforcement officer or inspector upon request.

You will have to obtain these insurance policies from an authorized insurance company that can file the necessary forms (such as BMC-91 or BMC-34) with the FMCSA (Federal Motor Carrier Safety Administration) online. 

The minimum amount of cargo insurance is $5,000 per vehicle and $10,000 per occurrence (according to FMCSA) for household goods carriers. 

Step 9: Get operating authority and MC number

If you plan to operate across state lines or haul regulated commodities such as household goods or hazardous materials, you will need to get operating authority from the FMCSA by obtaining an MC number. 

To get an MC number, you will have to file an application form (such as OP-1) with the FMCSA online or by mail and pay a one-time fee of $300. You will also have to publish a notice of intent in a local newspaper and wait for any protests or challenges from existing carriers within 10 days after publication. 

Once approved, you will receive an MC number that identifies your operating authority type and scope.

Step 10: Register which state you will become a hotshotter in

This step involves registering your vehicle and obtaining license plates. Additionally, you will also need to comply with any state-specific requirements such as taxes, permits, inspections, etc. 

Moreover, if you plan to travel across multiple states or provinces, you will need to register for the International Registration Plan (IRP), along with the International Fuel Tax Agreement (IFTA).

Step 11: Open a business bank account and get a tax ID number

Ideally, you will need to open a separate bank account for your hot shot trucking business. Plus, you also need to get an EIN (Employer Identification Number) from the IRS (Internal Revenue Service). It will allow you to file taxes as a business owner.

Step 12: Create a business plan and budget

In this step, you will need to create a detailed plan for aspects such as marketing strategy, operational plan, financial projections, etc.

Plus, you will also need to create a realistic budget that estimates your income and expenses (for at least the first year of operation).

Step 13: Set your rates and terms of service

Based on factors such as distance, weight, and urgency. etc, you will have to determine how much you will charge for each load.

What’s more, you also need to establish your terms of service, such as payment methods, cancellation policies, liability clauses, etc.

Lastly, you should have a written contract with each customer that outlines these details clearly.

Step 14: Market your business and network with potential customers

You must promote your hot shot trucking business to attract and retain customers. For this, you can use various marketing channels, such as online platforms, social media, business cards, flyers, referrals, etc.

Furthermore, you can also network with potential customers, such as shippers, brokers, carriers, construction companies, farmers, etc. 

Or, you can also try your luck by attending trade shows, joining associations, making cold calls, etc.

Step 15: Join a load board or sign up with a broker or carrier company

You need to find hot shot loads that match your specialty and availability. For this, you can use online platforms called “load boards” that connect shippers with drivers who bid on their loads.

Alternatively, you can sign up with a broker or carrier company that will find loads for you in exchange for a commission or fee.

Step 16: Hot shot loading and finally getting started

The final step is loading your truck and trailer with the cargo you agreed to haul for your customer. In this last step, you should follow all safety precautions and regulations when loading and securing your load. 

You should also inspect your equipment and documents before hitting the road. Plus, you should deliver your load on time and in good condition to your customer. Then, you can collect your payment according to your contract.

Hot Shot Trucking Startup Cost

The startup costs for a hot shot trucking business range from $28,000 to $106,000, with an average of $51,500.

The bulk of this cost is for the pick-up truck and trailer. Other costs include:

• Insurance: You’ll need liability insurance for your truck and cargo, as well as physical damage coverage.

Expect to pay anywhere from $6,000 to $12,000 per year for insurance.

• Licensing and registration: You’ll most likely need a commercial driver’s license (CDL). You’ll also need a USDOT number and an MC number (if you want to operate across state lines).

The cost of these licenses and registrations can range from $300 to $1,000.

• Taxes and fees: If your truck weighs more than 55,000 pounds, you’ll have to pay federal heavy vehicle use tax (HVUT). 

That, in combination with state fuel taxes and registration fees, can add up to 7000 dollars per year.

• Maintenance and repairs: Expect to spend at least $3,000 per year on maintenance and repairs.

• Fuel: Expect to spend at least $15,000 per year on fuel.

Lastly, there may be other costs depending on your marketing expenses or office supplies.

Best Hotshot Truck Setup

The best hotshot truck setup is the optimal combination of your budget, your load type, your preferred trailer style, and your personal preferences. 

The hot shot trucking starter kit will consist of the optimal combination of a well-performing truck, a heavy-duty trailer, and some other essential tools. 

Now, let us give you some general guidelines on the hot shot trucking requirements:

1. Choose a heavy-duty pickup truck that can handle at least 10,000 lbs of towing capacity. 

Some of the best trucks for hotshot trucking are

• ram 3500 hotshot
• Chevrolet Silverado 3500HD,
• Ford F-350 Super Duty,
• GMC Sierra 2500HD
• Toyota Tundra

You can buy a new or used truck depending on your budget and availability.

2. Choose a trailer that matches your truck’s towing capacity and your load size. 

Some of the most useful hot shot trailers for hotshot trucking are bumper pull trailers (AKA “tag-along” trailers), gooseneck trailers (AKA “fifth-wheel” trailers), and flatbed trailers. 

• Bumper pull trailers have lower weight limits and less stability. 

• Gooseneck trailers have higher weight limits and more stability but they are more difficult to maneuver. 

• Flatbed trailers can haul all kinds of loads but require more skill to protect the cargo.

3. Equip your truck and trailer with the necessary accessories and tools for hotshot trucking. 
   

Essential hotshot trucking startup kits include a spare tire kit, a jack stand, a tire pressure gauge, a fire extinguisher, an emergency kit, tie-down straps or chains, tarps, or covers for cargo protection. 

You will also need to invest in a dashcam, an ELD device or app for logging hours of service, or a CB radio for communication with other drivers.