Guide to Starting a Trucking Company in Texas

Starting a trucking company in Texas requires compliance with both the Texas Department of Motor Vehicles (TxDMV) and federal regulators. Texas operates one of the largest commercial vehicle networks in the United States, governed by the Texas Transportation Code. To operate legally, carriers must secure a USDOT number from the Federal Motor Carrier Safety Administration (FMCSA) and, for intrastate operations, a Texas Department of Motor Vehicles Certificate of Operating Authority, commonly known as a TxDMV Number. The process involves registering a business entity through the Texas Secretary of State, obtaining specific insurance coverages, and paying fees based on fleet size and vehicle weight. Navigating these requirements is essential for owner-operators and fleet managers looking to capitalize on high-volume lanes like the I-35 and I-10 corridors. DispatchTool streamlines this transition by managing IFTA reporting calculations and providing truck-safe routing that accounts for Texas-specific bridge heights and weight restrictions. Carriers can use the platform to maintain digital records of their TxDMV certificates and ELD data in one centralized location. Create a DispatchTool account to automate your dispatching and stay compliant with Texas reporting deadlines.

Business Structure and Texas SOS Filing

Before applying for motor carrier authority, you must register your business with the Texas Secretary of State (SOS). Most trucking companies choose between a Limited Liability Company (LLC) or a Corporation to protect personal assets. The filing fee for a Texas LLC is $300, typically processed within 3 to 5 business days for online filings via SOSDirect. Additionally, businesses must apply for a Federal Tax ID (EIN) from the IRS, which is required for IFTA accounts and heavy highway vehicle use tax (Form 2290) filings. If you operate under a name other than your legal name, you must file an Assumed Name Certificate (DBA) at the county level or with the SOS.

Obtaining TxDMV Intrastate Authority

For carriers operating exclusively within Texas borders, a TxDMV Number is mandatory under Texas Transportation Code Chapter 643. The application is submitted through the eFILE system. The standard filing fee is $100 for a two-year certificate, plus an annual vehicle registration fee of approximately $10 per vehicle. You must provide proof of insurance and a process agent. Processing times for Texas intrastate authority typically range from 7 to 14 business days once all documentation, including insurance filings, is verified by the state. Unlike federal authority, there is no mandatory 21-day protest period for Texas-only registrations.

Federal DOT and MC Number Requirements

If your trucks cross state lines or haul interstate commerce that originates outside of Texas, you must obtain a USDOT number and Operating Authority (MC Number) from the FMCSA. The application fee for an MC Number is $300. Following the application, the FMCSA mandates a 21-day protest period before authority is granted. During this time, you must file your BOC-3 (Designation of Process Agents) and ensure your insurance provider submits the required BMC-91 or BMC-91X filings. Failure to complete these steps within 90 days results in the dismissal of the application and forfeiture of the filing fee.

Texas Insurance Minimums and Filings

Texas law establishes strict insurance minimums for commercial motor vehicles. For trucks with a Gross Vehicle Weight Rating (GVWR) over 26,000 lbs carrying general freight, the minimum liability coverage is $500,000. However, most shippers and brokers require a minimum of $1,000,000 in primary auto liability and $100,000 in cargo insurance to secure loads. For hazardous materials, the requirement increases to $1,000,000 or $5,000,000 depending on the substance. These policies must be submitted to the TxDMV via Form E for intrastate carriers or to the FMCSA via the insurance company for interstate carriers.

Unified Carrier Registration (UCR) and IFTA

Texas-based carriers operating in interstate commerce must register for the Unified Carrier Registration (UCR). Fees for 2024 start at $37 for fleets of 0-2 vehicles and scale upward based on fleet size. Additionally, if your vehicle exceeds 26,000 lbs or has three or more axles, you must register for the International Fuel Tax Agreement (IFTA) through the Texas Comptroller of Public Accounts. IFTA requires quarterly tax returns reporting all miles driven and fuel purchased. Texas also requires an International Registration Plan (IRP) for apportioned plates if you operate in multiple jurisdictions, with fees calculated based on the percentage of miles driven in each state.

Texas Heavy Highway Vehicle Use Tax (Form 2290)

Any commercial vehicle with a taxable gross weight of 55,000 pounds or more must file IRS Form 2290 annually. The tax year runs from July 1st to June 30th, and the maximum annual tax is $550 per vehicle. You must present a stamped Schedule 1 from Form 2290 to the Texas Department of Motor Vehicles to renew your heavy vehicle registration. Failure to provide this proof of payment will result in the denial of vehicle tags. This federal tax supports the Highway Trust Fund, which provides significant funding for Texas infrastructure projects.

Sources

Texas Department of Motor Vehicles (2025) — https://www.txdmv.gov/motor-carriers FMCSA Registration Requirements (2024) — https://www.fmcsa.dot.gov/registration Texas Secretary of State Fees (2024) — https://www.sos.state.tx.us/corp/fees.shtml

Frequently asked

How much does it cost to start a trucking company in Texas?

Initial regulatory costs typically range from $1,500 to $5,000. This includes the $300 SOS filing, $300 FMCSA fee, $100 TxDMV fee, and down payments for insurance which can range from $1,000 to $3,000 per truck.

Do I need a Texas CDL to own a trucking company?

No, you can own a trucking company without a Commercial Driver's License (CDL), but you must hire drivers who possess a valid Class A or B CDL. If you plan to drive the vehicle yourself, you must meet all Texas DPS medical and licensing requirements for vehicles over 26,000 lbs.

How long does it take to get a TxDMV number?

The Texas Department of Motor Vehicles typically processes intrastate authority applications in 7 to 10 business days, provided that your insurance company has filed the required Form E electronically.

What is the minimum insurance for a hot shot truck in Texas?

If the truck and trailer combination has a GVWR over 26,000 lbs, you must carry at least $500,000 in liability. For vehicles between 10,001 and 26,000 lbs, the Texas minimum is $300,000, though most brokers still require $1,000,000.