Business registration
Choose the business structure that fits your tax and liability situation, register it where required, obtain local licenses if applicable, and keep business finances separate. An EIN is commonly used for banking, tax administration and customer paperwork.
Commercial auto insurance
Personal auto policies generally are not designed for a for-hire delivery business. Describe the actual use of the van to the insurer, including cargo, operating radius, interstate travel, annual mileage and drivers.
Cargo and general liability coverage
Commercial auto, cargo insurance and general liability cover different risks. Brokers, platforms and direct customers may impose their own limits. Obtain written confirmation before accepting work that requires specific coverage.
USDOT registration
Do not rely on the idea that every cargo van is automatically exempt. FMCSA safety-registration requirements consider the vehicle and operation, including interstate commerce and vehicle weight. Verify the actual GVWR and operation.
Operating authority
FMCSA operating authority is a separate question from the USDOT number. For-hire interstate transportation of federally regulated property may require operating authority. Operators leased to another authorized carrier may follow a different structure.
State and local requirements
State business registration, vehicle registration, taxes, permits and intrastate carrier rules vary. If you operate only within one state, do not assume federal rules are the only rules that matter.
Customer and platform requirements
A platform, broker or shipper can set requirements beyond government minimums. These may include cargo limits, certificates of insurance, background checks, vehicle age or dimensions, safety equipment and proof-of-delivery procedures.
Records to organize before launch
- Business registration and EIN documentation
- Commercial insurance policy and certificates
- Vehicle registration and maintenance records
- Authority and registration records if applicable
- W-9 and banking information
- Customer agreements and rate confirmations
- Invoices and proof of delivery
- Mileage, fuel, toll and expense records
Insurance and compliance guide →
Complete cargo van startup guide →