How Much Does It Cost to Start a Moving Company?

FAQ

Can I start a moving company with just one truck?

Absolutely. Most successful moving companies started with a single box truck and a two-person crew. A used 26-foot box truck, basic equipment, and proper licensing can get you operational for $10,000-$15,000 if you keep costs lean. Focus on booking 3-5 local moves per week to build cash flow, then reinvest in a second truck once demand consistently exceeds your capacity. The single-truck model also lets you learn the business before taking on the complexity of managing multiple crews.

What licenses and permits do I need to start a moving company?

At minimum, you need a business license, a USDOT number (free from FMCSA), and state-specific mover registration or PUC authority. If you plan to do interstate moves (crossing state lines), you also need MC (Motor Carrier) authority ($300 filing fee) and a BOC-3 process agent designation. Many states require movers to file tariffs or rate schedules. Some cities require additional local permits. The licensing process for interstate authority takes 2-4 weeks, so apply well before your planned launch date.

How much does moving company insurance cost?

Insurance is one of the biggest ongoing expenses. Expect to pay $3,000-$8,000 per year for commercial auto insurance per truck, $800-$3,000 for general liability, $800-$3,000 for cargo insurance, and $3,000-$10,000 for workers comp if you have employees. Moving is classified as a high-risk industry, so premiums are higher than most service businesses. Your rates will depend on your location, driving records, fleet size, and claims history. Shopping multiple brokers who specialize in moving company insurance can save 15-25%.

What is the difference between local and long-distance moving?

Local moves typically stay within the same state and are charged by the hour ($100-$200/hr for a two-person crew with truck). Long-distance or interstate moves cross state lines and are charged by weight and distance. Interstate moving requires MC authority from FMCSA, higher insurance minimums ($750,000 cargo liability), BOC-3 filing, and compliance with federal household goods regulations. Long-distance jobs generate higher revenue per move but require more capital, more complex logistics, and more regulatory compliance. Most new companies start local-only and add long-distance after their first year.

How much can a moving company earn in the first year?

A single-truck local moving company doing 3-5 moves per week can generate $150,000-$300,000 in gross revenue in the first year. After expenses (fuel, labor, insurance, truck payments), net profit margins for well-run moving companies typically range from 10-20%. That translates to $15,000-$60,000 in first-year profit for a small operation. Multi-truck companies with strong marketing can hit $500,000+ in revenue, though the added complexity of managing crews and vehicles can eat into margins if not managed carefully.

Should I buy or lease my box truck?

Buying a used box truck outright ($8,000-$25,000) is the most common approach for new moving companies because it avoids monthly lease payments that strain cash flow during the critical startup phase. Leasing makes sense if you want a newer, more reliable truck with lower maintenance costs and you have consistent revenue to cover $1,200-$2,000/month payments. A third option is renting from Penske or Budget on a per-job basis while you build up cash to buy, though this cuts deeply into margins. Whichever route you choose, get a pre-purchase inspection from a diesel mechanic before committing to any used truck.

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