How To Start A Cargo Van Business

In this post, we shall take a quick look at the necessary steps required to start a cargo van business. The cargo van business is lucrative business that most people are not aware of and starting it is not as tedious as you may think. Below is a walk through steps on how to start a cargo van business.

Create an LLC

Creating an LLC is the first step to take when forming a cargo van business. Small business like the cargo van takes advantage of this legal structure to provide liability protection for itself. To create your LLC, follow the steps below.

1.    Choose Your Preferred Business Name: A well thought out business name should reflect your brand. Think of a unique business name that is relevant to your business. Make sure the name is available and not taken by someone.

2.    Register Your LLC: Get all documents ready and submit it to the appropriate authority within your state or region. You may be required to pay a fee for processing your request. You may be also required to publish it on your local newspaper.

3.    Craft an Operating Agreement: This is not always required legally, it is however, important to create a functional agreement that clearly shows in detail the operating processes of your LLC.

Obtain an EIN Number (IRS)

EIN short for Employer Identification Number is vital for the tax and financial activities of your business. To get your EIN, follow these steps.

1.     Apply Online: Log into IRS website and fill in the required details needed on the EIN application form. This process is very simple and takes less than 10 minutes to complete.

2. Use Your EIN: Your EIN will become important when setting up your business account, recruiting employees or filling for your taxes.

Create a Bank Account Under the LLC separate

Distinguishing between your business and personal finances is critical for keeping proper records and safeguard your assets. To open a business account, follow the steps below.

1. Choose Your Preferred Bank: Chose a bank that gives good services for business account. These favorable terms may include low fees, excellent customer service etc.
2. Get Your Documents Ready: To open a bank account for your LLC, you will need to ensure that your LLC Article of Organization and Employer Identification Number are ready
3. Open Your Bank Account: Get the bank to open a business account for you. The account will be used for transactions related to your business.

Purchase Your Cargo Van

Ensure that you chase the right van when buying one for your cargo van business. Take these factors into consideration when buying your van.

1. Define Your Needs: Go for a van that matches the type of services you intend to render. Also, consider what distance you will be covering as well as the size of goods you will be transporting. It is also ideal to check for the fuel efficiency of the van.
2. Used Van vs. New Van: Chose if you want to buy a brand new van or a used one. The advantage of buying a new van is that it comes with warranties and fewer threat of mechanical issues.
3. Check, Test and Drive: If you decide to buy a used van, ensure it is tested by a professional mechanic to ensure that it is a good condition.

Get Commercial Insurance

Obtaining a commercial insurance is vital as it helps to safeguard your vehicle, business as well as the cargos. Below are quick steps to help you get a commercial insurance.

1. Research The Insurance Company: Find an insurance company that specializes in providing commercial vehicle insurance with a reasonable rate.
2. Get the Right Coverage: Make sure you chose the most appropriate coverage that caters for both collision and comprehensive coverage. Others are cargo coverage and liability coverage.
3. Buy the Policy: After deciding on which policy to settle for and that suits your needs, buy the insurance.

Start Looking for Contracts

Looking out for contracts is what lunches your cargo van business. Use the guide below to scout for contracts.

1. Network Locally: Look out for potential clients that needs cargo delivery services. These are usually products manufacturers, companies. Retail stores etc.
2. Leverage on Online Platforms: Take advantage of online cargo delivery service platforms and sign up with them.
3. Market Your Services: Leverage on social media to market your services.
4. Focus on Building Relationships: Initiate a cordial relationship with your clients. Give excellent service to boost repeated business.

Leveraging on the steps outlined above, one can put in a solid foundation for a cargo van business.