How to Start a Moving Company

Starting a moving company means choosing a business structure, registering with federal and state agencies, getting the right insurance, and buying or leasing equipment. The steps are concrete and manageable. This guide walks through each one so you know exactly what to do and in what order.

The type of moving business you start shapes every decision that follows — your equipment needs, your federal registration requirements, and how much capital you need on day one. The 4 main models each have a different risk and cost profile.

Local moving

Local movers handle moves within a single metro area or county. You don't need federal operating authority from the FMCSA for purely intrastate work, which lowers your startup paperwork. This is the most common entry point for first-time moving business owners.

Interstate moving

Interstate movers cross state lines, which triggers federal regulation. You'll need a USDOT number and operating authority (an MC number) from the Federal Motor Carrier Safety Administration (FMCSA) before you can legally haul household goods across state lines.

Commercial moving

Commercial movers relocate offices, warehouses, and retail spaces. Jobs tend to be larger and higher-value, but the sales cycle is longer and you'll compete against established regional players. Specialized equipment — like furniture dollies, crating materials, and lift gates — is often required.

Franchise moving

Buying into a moving franchise gives you a recognized brand, a proven operating system, and sometimes preferred vendor pricing on trucks and supplies. The trade-off is an upfront franchise fee and ongoing royalties. It's a faster path to credibility, but you give up some control over how you run the business.

A business plan forces you to answer the questions that will determine whether your moving company survives its first year: who your customers are, what you'll charge, what it costs to run a truck, and when you'll break even. The SBA outlines the core components every plan needs.

For a moving business, the most important sections are your market analysis and your financial projections. Research how many moves happen in your target area each year, what competitors charge per hour or per job, and what your fixed costs look like — truck payments or leases, fuel, insurance, and payroll. Your financial projections should cover at least the first year with monthly cash flow, and ideally 3 years out.

Most moving company owners form an LLC. It separates your personal finances from the business, which matters a lot in an industry where property damage claims and on-the-job injuries are real risks. Without that separation, a lawsuit against your business can reach your personal bank account.

To form an LLC, file Articles of Organization with your state's Secretary of State office and pay the state filing fee. After your LLC is approved, apply for an Employer Identification Number (EIN) from the IRS — you'll need it to open a business bank account, hire employees, and file taxes. You can apply for an EIN at no cost through the IRS website, and online applications are processed immediately.

If your moving trucks have a gross vehicle weight rating over 10,001 pounds — which covers most standard moving vans — you need a USDOT number from the FMCSA. If you plan to move household goods across state lines, you also need operating authority, which means getting an MC number.

Register for both through the FMCSA's Unified Registration System. Once you have operating authority, you'll also need to file proof of insurance with the FMCSA using Form BMC-91 or BMC-91X before you can legally operate. Interstate household goods carriers must carry at least $750,000 in public liability insurance.

Local-only movers who stay within one state may not need federal operating authority, but check your state's transportation agency — many states have their own intrastate carrier registration requirements.

Beyond federal registration, most states require moving companies to hold a state-issued mover's license or household goods carrier permit. Requirements vary — some states require a separate bond, others require proof of insurance filed with a state agency, and some require both.

At the local level, you'll likely need a general business license from your city or county. If you plan to park commercial vehicles at a home address or a facility in a residential zone, check local zoning rules before you sign any lease. A tax professional can help you figure out which state and local registrations apply to your specific situation.

Insurance is one of the most important decisions you'll make when starting a moving company — and one of the most expensive line items in your budget. Getting the coverage wrong can leave you personally on the hook for a damaged piano or an injured crew member.

• Commercial auto insurance: covers your trucks and drivers on the road. Required in every state for commercial vehicles.
• Cargo insurance: covers damage to customers' belongings while in your care. Interstate movers must file proof of at least $5,000 per vehicle in cargo coverage with the FMCSA.
• General liability insurance: covers property damage or bodily injury claims that happen during a move — for example, a doorframe damaged while carrying furniture.
• Workers' compensation: required in most states once you hire employees. Covers medical costs and lost wages if a mover is injured on the job.
• Public liability insurance: interstate carriers must maintain at least $750,000 in public liability coverage under FMCSA rules.

Talk to a commercial insurance broker who works with transportation businesses. They can bundle policies and make sure your coverage meets both federal FMCSA requirements and your state's rules.

Your truck is your biggest startup cost and your most important asset. Most new moving businesses start with 1 or 2 trucks — either a 16-foot or 26-foot box truck — and add vehicles as revenue grows. Buying used is common at the start; leasing keeps your upfront costs lower but adds a fixed monthly obligation.

Beyond trucks, you'll need moving blankets, dollies, hand trucks, straps, shrink wrap, and basic packing supplies. Budget for these before you take your first job — showing up without proper equipment damages your reputation fast in a business that runs almost entirely on reviews and referrals.

Many moving companies start with the owner driving and doing the physical work alongside 1 or 2 part-time helpers. As you add trucks and jobs, you'll need to hire full-time movers and drivers. Anyone driving a commercial vehicle needs a valid driver's license — and depending on the vehicle's weight class, a Commercial Driver's License (CDL) may be required.

Once you hire employees, you'll need to set up payroll, withhold payroll taxes, and carry workers' compensation insurance. A payroll service or accountant can handle the mechanics. What catches new moving business owners off guard is the cost of workers' comp in a physically demanding industry — get quotes before you hire so the number doesn't surprise you.

Most local moving companies charge by the hour — typically a 2-person crew rate plus a truck fee. Interstate moves are usually priced by weight and distance. Research what competitors in your area charge before you set your rates. Pricing too low to win jobs is a common early mistake that makes it hard to cover your actual costs.

Your first customers will likely come from Google, Yelp, and word of mouth. Claim your Google Business Profile before you open — it's free and it's how most people find local movers. Ask every satisfied customer for a review. In the moving industry, a strong review profile is worth more than any paid ad in your first year.

Staying in good standing as a moving business means keeping up with both your state business requirements and your federal carrier obligations. Miss either and you can lose your operating authority or face fines.

On the state side, most LLCs need to file an annual report and pay a renewal fee each year to stay active. On the federal side, the FMCSA requires interstate carriers to keep their insurance filings current — if your coverage lapses, your operating authority can be revoked. Keep your USDOT registration updated any time your business information changes, including address, fleet size, or ownership.