How to Start a Trucking Company in Ontario
Thinking about starting your own trucking business in 2026? This guide walks you through everything—from CVOR registration to getting insured as a new authority. No sugarcoating, just what you actually need to know.
Last updated: February 2026 | Based on current MTO requirements
Before You Start: A Reality Check
The trucking industry has a high failure rate—roughly 80% of new trucking companies don't survive past year two. The ones that make it share common traits: adequate capitalization, realistic expectations, and proper planning.
This guide won't promise easy money. It will show you exactly what's required to give your trucking business the best chance of success.
What It Actually Costs to Start
| Expense Category | Low Estimate | High Estimate | Notes |
|---|---|---|---|
| Truck (Down Payment or Purchase) | $50,000 | $180,000 | Used vs. new, lease vs. buy |
| First Year Insurance | $15,000 | $25,000 | New authority rates |
| CVOR + Permits + Plates | $2,000 | $5,000 | IFTA, IRP if cross-border |
| Operating Capital (3-6 months) | $30,000 | $60,000 | Fuel, maintenance, living expenses |
| ELD + Safety Equipment | $1,500 | $4,000 | Mandatory ELD, dash cams |
| Business Setup + Legal | $1,000 | $3,000 | Incorporation, accounting setup |
| TOTAL | $99,500 | $277,000 | Not including trailer |
The 6-Step Launch Process
Validate Your Business Model
Before spending a dollar, figure out exactly how you'll make money. The trucking industry has razor-thin margins—typically 3-7% net profit for well-run operations.
Key Questions to Answer:
- • What freight will you haul? (General, reefer, flatbed, specialized)
- • What's your operating radius? (Local, regional, long-haul, cross-border)
- • Who are your target customers? (Direct shippers, brokers, dedicated contracts)
- • What rate per mile do you need to be profitable?
Pro tip: Talk to owner-operators already doing what you want to do. Buy them lunch. The insights you gain are worth more than any business course.
Register Your Business
Get the legal foundation in place. This isn't glamorous, but skipping steps here causes headaches later.
Get Your CVOR
The Commercial Vehicle Operator's Registration is your license to operate commercial vehicles in Ontario. Without it, you can't legally run a trucking company.
CVOR Application Requirements:
- • Completed CVOR application (Form 1900)
- • Business registration documents
- • $250 application fee
- • Vehicle information (once you have equipment)
- • Processing time: 4-6 weeks
Your CVOR creates a safety record that follows your company forever. Learn how CVOR affects your insurance rates →
Important: Apply for CVOR early. The 4-6 week processing time can delay your launch if you wait until you have your truck.
Acquire Your Equipment
This is where most of your capital goes. The buy vs. lease decision depends on your financial situation, risk tolerance, and business plan.
Buying Used
- + Lower initial cost ($50k-$90k)
- + No monthly payments (if paid cash)
- + Full ownership equity
- - Higher maintenance risk
- - No warranty protection
Leasing New
- + Warranty coverage
- + Predictable monthly costs
- + Newer, more reliable equipment
- - Higher total cost over time
- - Locked into payments
Whatever you choose, get a pre-purchase inspection from an independent mechanic. A $300 inspection can save you from a $30,000 mistake.
Secure Insurance Coverage
Insurance is often the biggest surprise for new trucking companies. As a new authority, you'll pay significantly more than established operators—and fewer insurers will quote you.
What You Need:
$2M minimum (Ontario requirement)
$100k minimum (broker requirement)
Required if financing/leasing
If leasing onto a carrier
Expect to pay $15,000-$25,000 for your first year. This is 40-60% higher than what experienced operators pay.
Complete New Authority Insurance GuideLaunch Operations
With paperwork done and equipment insured, it's time to find freight and start generating revenue.
Finding Your First Loads:
- Load boards: DAT, Truckstop.com, Loadlink (start here)
- Freight brokers: Build relationships, negotiate rates
- Direct shippers: Harder to get, but better margins
- Dedicated contracts: Steady work, often lower per-mile rate
Essential Systems:
- • ELD device (legally required)
- • Accounting software (QuickBooks, FreshBooks)
- • Fuel card program (Comdata, EFS)
- • Dash camera (front and rear)
- • GPS tracking
Mistakes That Kill New Trucking Companies
Undercapitalization
The #1 killer. If you can't survive 3-6 months of slow freight, unexpected repairs, or a bad customer, you're one setback away from failure. Never start a trucking company with just enough money to buy a truck.
Taking Every Load
Desperation leads to accepting loads that don't cover your costs. Know your break-even rate per mile. If a load doesn't hit that number, it's losing you money— even if it pays something.
Ignoring Maintenance
A $500 preventive maintenance item becomes a $5,000 roadside breakdown. Set aside $0.10-$0.15 per mile for maintenance reserves. This isn't optional.
Not Tracking Numbers
If you don't know your cost per mile, revenue per mile, and profit per load, you're guessing. Successful owner-operators track everything. Get accounting help if numbers aren't your strength.
Ready to Get Insured?
Getting insurance is often the hardest part for new authorities. Use our calculator to estimate your costs, or connect with brokers who specialize in new trucking companies.
Third-generation insurance broker and CEO of Mitch Insurance, a family-run brokerage since 1948. Adam has led the company to multiple industry recognitions including IBAO Brokerage of the Year and works with over 70 of Canada's top insurance companies.