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.
- 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.
- 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.
- 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
- 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.
- 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.
- 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.
- 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.
- Research
The Insurance Company: Find an insurance company that specializes in
providing commercial vehicle insurance with a reasonable rate.
- 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.
- 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.
- Network
Locally: Look out for potential clients that needs cargo delivery
services. These are usually products manufacturers, companies. Retail
stores etc.
- Leverage
on Online Platforms: Take advantage of online cargo delivery service platforms
and sign up with them.
- Market
Your Services: Leverage on social media to market your services.
- 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.
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