Find out the Best State for Your Trucking business
The trucking industry in the US is very important to the economy; in 2022, it carried 72.5% of all domestic freight by weight [American Trucking Associations]. If you want to start a trucking business, choosing the best state for Trucking Business is the first thing you must do. This choice could have a big effect on your bottom line, your ability to hire drivers, and your overall success. Here is a full list of things to think about, along with numbers that show how appealing the top candidates are:
Key Things to Think About:
Business costs for trucking business
- Taxes: State Corporate Income Tax Rates are very different. Some states, like Texas, Washington, and Nevada, don’t have this kind of tax, which makes them good places to live financially. States like California, on the other hand, have a high 9.3% corporate income tax that makes it harder to make money.
- Registration Fees & Permits: Each state has its own rules about how much it costs to register a truck or trailer. Think about the weight classes of your vehicles and look into the fees that go with them. Also, think about how much permits cost for certain routes or types of cargo.
- Fuel Costs: Diesel prices change from state to state because of taxes and the local market. Oklahoma and other states that have historically had lower fuel prices can be very helpful..
Regulations for trucking business:
- Truck Weight Limits: There are federal limits, but some states have stricter limits on weight within their own states. It is very important to know these limits in order to avoid fines and route restrictions.
Licenses and registration: Find out how easy and quick it is to get the licenses and permits you need in the state you’re considering. For example, the TX DMV permit [Personal Truck Services] can be issued in just 48 hours in Texas, which speeds up the process. - Labor and Market: Freight Availability: Look at the types of freight that are usually moved through your target area. Think about how things like major highways, ports, and industrial hubs affect the amount of freight that moves.
- Driver Availability and Pay: It is important to have a large pool of qualified drivers. Compare the average truck driver salary to the cost of living in states with a lot of CDL holders. North Dakota has a high driver salary of about $78,797, but it may not have as many qualified drivers as states with more people.
- Quality of Life: Things like rest stops, truck stops, and the overall infrastructure (like road quality and traffic) can affect how happy and loyal drivers are.
The Top Candidates:
A number of states consistently rank high for trucking businesses because of a mix of the above factors that are good for business:
- Texas: Known as the “Trucking Mecca,” Texas is a great place for businesses to operate because it has no corporate income tax, low fuel prices, and an easy registration process. The state’s location in the middle of the country and its large network of highways make it a hub for moving goods, which opens up many opportunities. However, because the state is so big, it might be hard to find drivers.
- Oklahoma: Oklahoma is another place where taxes and business costs are low. It has lots of open space, not much traffic, and trucks use less fuel because of this. Even though Oklahoma may not have as much freight as Texas, it is a good option because it has a lower cost of living.
- Ohio: Ohio has great access to a huge freight market because it is strategically located at the intersection of major routes from the East Coast to the Midwest and the South. The state has a good number of truck driver job openings with good average pay, which makes it easier to hire drivers. But Ohio does have a corporate income tax, which you should take into account.
- Washington: Washington has a higher cost of living, but it makes up for it by having no state income tax and some of the highest average trucking wages in the country. This combination might be good for getting and keeping qualified drivers. Also, Washington is close to major ports on the West Coast, like Seattle, so there is a steady flow of freight.
- Indiana: Like Washington, Indiana has a high average wage for truck drivers and no state income tax. The state is an important part of the national freight network because it is in the middle of everything and has good infrastructure. Businesses that want to pay their drivers fairly and live in a state with a lower cost of living than Washington might want to consider Indiana.
Extra Information:
You can use these tools to learn more about and compare states for your trucking business:
The American Trucking Association (ATA) website has useful information and tools for people who work in the trucking industry.
State Department of Transportation Websites: The website for each state’s Department of Transportation has information on rules, permits, and infrastructure in that state.
Industry Publications: Magazines like “Overdrive” and “Transport Topics” have news and information about the trucking industry, including information that is specific to each state.
Making the Final Decision:
All of the above factors must be carefully thought through when picking the best state for your trucking business. The best choice for your business will depend on its niche, goals, and budget. There is no one “perfect” answer. To do a thorough analysis, use the information, resources, and strategic points of view listed here. Remember that the best state will not only help your bottom line but also set your trucking business up for long-term success in an industry that is always changing.
