How to Start a Moving Company in 2026: FMCSA Authority, State Permits, Insurance and Job Economics

Moving is a business you can start with one truck and two strong people, and it's also one of the most regulated small transport businesses in the country. Household goods movers carry people's entire lives in the back of a truck, so federal and state rules go well beyond ordinary freight: specific insurance, written estimates, published tariffs, arbitration programs and consumer booklets. This guide is for anyone in the US starting a moving company in 2026, from a local two-person crew to an interstate carrier, and was checked against FMCSA regulations and the Texas and California mover agencies in October 2026.

Quick answer

To start a moving company, decide whether you'll do local (intrastate) moves, interstate moves or both. Form an LLC, buy or lease a truck, and get the right authority: a state mover permit for local moves where your state requires one, and a USDOT number plus FMCSA household goods authority, a BOC-3 and insurance filings for interstate moves. Then publish a tariff, set up estimates and contracts, and price by the hour or by weight.

• Interstate: USDOT number, household goods authority ($300), BOC-3, insurance on file

• HHG cargo insurance: $5,000 per vehicle, $10,000 per occurrence

• Texas: TxDMV registration for any household goods carrier, whatever the truck size

• California: BHGS mover licence, $500 fee, open-book exam and $20,000 cargo cover

• Our one-truck example breaks even at about 241 jobs a year

Local, interstate or labor-only: pick your model

Your licensing path, insurance cost and paperwork all follow from where your trucks go.

Local (intrastate) moves. Moves that start and end in the same state are regulated by that state, not by FMCSA's household goods consumer rules. Some states require a specific mover licence and tariff, some only general motor carrier registration, and some regulate little beyond business licensing. Most new moving companies start here: short jobs, hourly pricing, same-day cash flow.

Interstate moves. Any move that crosses a state line, and moves within a state that are part of an interstate trip, fall under FMCSA. You need a USDOT number, household goods operating authority and the consumer protection program in 49 CFR Part 375. Interstate work pays more per job but brings longer trips, weight-based pricing, more paperwork and more exposure to damage claims.

Labor-only. Customers rent their own truck or container and you provide loading, unloading and packing crews. Because you don't transport goods, you may not need carrier authority, though your state's definitions decide that, and you still need liability insurance and workers' compensation. It's a common way to build a crew and a reputation before buying trucks.

Brokers are different. A household goods broker arranges moves for a carrier to perform and needs separate FMCSA broker authority. Don't take deposits and hand jobs to other movers unless you're registered as a broker; unregistered brokering is behind many moving scams FMCSA warns about.

Federal requirements for interstate movers

Interstate household goods carriers register with FMCSA for a USDOT number and household goods operating authority. FMCSA moved registration into its Motus system, open to all customers from May 19, 2026, with identity verification through Login.gov; operating authority still costs $300 per authority type. Authority isn't granted until two filings are in place.

The first is a BOC-3, the designation of process agents in each state where you operate, so you can be served with legal papers anywhere you do business. Most carriers use a blanket process agent company that covers all states. The second is proof of insurance, filed by your insurer, covering both liability and cargo.

The liability minimum depends on your trucks. For for-hire carriers of non-hazardous property, including household goods, a fleet made up only of vehicles under 10,001 pounds gross vehicle weight rating needs $300,000 in bodily injury and property damage coverage, and a fleet with vehicles of 10,001 pounds or more needs $750,000. Household goods carriers must also carry cargo coverage of at least $5,000 for goods on any one vehicle and $10,000 for losses at any one time and place. These are minimums. A single high-value move can exceed them, so most movers buy more.

Then come the operating rules for any truck of 10,001 pounds or more in interstate commerce: drivers need DOT medical certificates, you need driver qualification files, vehicle inspection and maintenance records, and hours-of-service compliance (11 hours of driving within a 14 hours window for property carriers). A commercial driver's licence is only needed for vehicles of 26,001 pounds or more, which is why many movers run 26-foot box trucks just under that line. Expect a new entrant safety audit within 12 months of starting interstate operations, and register for the Unified Carrier Registration each year (UCR fees start at $55 for 0–2 vehicles for 2027). Our trucking business plan guide covers these in more depth.

Interstate mover setup checklist

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• LLC formed and EIN issued
• USDOT number and household goods operating authority in Motus
• BOC-3 process agent filing
• Liability and household goods cargo insurance filed by your insurer
• UCR registration for the current year
• Published tariff with rates, rules and accessorial charges
• Arbitration program through a neutral arbitration provider
• FMCSA consumer booklet and Ready to Move materials on your website and with estimates
• Estimate, order for service, bill of lading and inventory forms
• Driver files, medical cards and vehicle maintenance records

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The consumer rules every interstate mover must follow

What makes household goods different from freight is 49 CFR Part 375, FMCSA's consumer protection rules for interstate moves of individual shippers. Get these processes right before your first booking.

Tariffs and booklets. Keep a tariff that lists your rates, rules and charges. Before the bill of lading, you must tell customers the tariff sections behind their estimate are available to examine or receive on request, give them summaries of your arbitration program and complaint procedures, and provide FMCSA's "Ready to Move?" and "Your Rights and Responsibilities When You Move" booklets, either as copies or as links on your website.

Estimates. Before you sign a bill of lading with an individual shipper, you must give a written estimate, labelled as binding or non-binding, based on a physical survey of the goods. The customer can waive the physical survey, but only in writing, signed before loading, and you keep the waiver with the bill of lading. A binding estimate guarantees the total for the items and services listed, and you may charge for preparing it. A non-binding estimate is your best estimate of the total, you can't charge for it, and final charges are based on actual weight and your tariff. Accessorial charges, such as long carries, stairs or elevators, must be determined before the bill of lading is prepared, and estimates can't be changed after loading.

The 110 percent rule. If you give a non-binding estimate on a collect-on-delivery shipment, the customer only has to pay 110% of the estimate at delivery, and you must then release their goods; extra services they asked for after the bill of lading and certain impracticable-operations charges can be added within limits, with any balance billed later. Lowball estimates don't just annoy customers. They cap what you can collect on the day.

Liability options. By default, you're liable for the replacement value of lost or damaged goods up to the shipment's declared value, known as full value protection. A customer can waive that in writing and accept a much lower released value set by the Surface Transportation Board's released rates order. Your estimate has to include the liability election notice so customers understand the choice.

Arbitration. You must offer an arbitration program for disputes over loss, damage and extra charges. Arbitration is binding on you if the customer requests it for claims of $10,000 or less, and the arbitrator must decide within 60 days of receiving notice. Most small movers join a program run by a neutral arbitration provider rather than building their own.

An interstate move, step by step

Step 1

Physical survey or signed waiver

Step 2

Written binding or non-binding estimate

Step 3

Order for service

Step 4

Bill of lading and inventory at pickup

Step 5

Delivery and payment

up to 110% of a non-binding estimate

Step 6

Claims or arbitration if needed

State permits for local moves: Texas and California

States regulate local moves very differently, so read your own state's rules before advertising. Two big states show the range.

Texas. Intrastate motor carriers register with the Texas Department of Motor Vehicles for a TxDMV number. Most carriers need it only for trucks over 26,000 pounds or other special vehicles, but household goods carriers must register regardless of vehicle weight, so even a pickup or cargo van doing paid moves needs it. Household goods carriers with vehicles under 26,000 pounds need $300,000 of liability insurance and cargo insurance of $5,000 per vehicle ($10,000 aggregate multi-shipper), filed by the insurer through the state's TxMCCS system. Fees include a $100 application fee plus per-vehicle and insurance filing fees, and you can register for one or two years.

California. Household movers are licensed by the Bureau of Household Goods and Services (BHGS) in the Department of Consumer Affairs. Anyone paid to move household goods entirely within California needs a household mover licence, and movers that only move goods into or out of California need an interstate mover licence from the same bureau; companies doing both apply for the general licence. The application fee is $500. Each licence needs an exam qualifier, either an owner or officer or a full-time employee working at least 32 hours a week, who passes an open-book exam on the state's Maximum Rate Tariff 4 with a score of 70% or more. Owners are fingerprinted for a background check. You need vehicle liability insurance, cargo liability coverage of $20,000, workers' compensation if you have employees, and a $2,000 surety bond if you handle collect-on-delivery shipments.

Texas vs California mover permits (2026)

Item	Texas (TxDMV)	California (BHGS)
Who needs it	Household goods carriers for compensation, any vehicle weight	Anyone paid to move household goods within, into or out of California
Application fee	$100 plus vehicle and filing fees	$500
Liability insurance	$300,000 (under 26,000 lbs)	Vehicle PL & PD per General Order 100
Cargo insurance	$5,000 per vehicle ($10,000 aggregate multi-shipper)	$20,000
Exam	None	Open-book Max 4 exam, 70% to pass

Who needs it

Texas (TxDMV)

Household goods carriers for compensation, any vehicle weight

California (BHGS)

Anyone paid to move household goods within, into or out of California

Application fee

Texas (TxDMV)

$100 plus vehicle and filing fees

California (BHGS)

$500

Liability insurance

Texas (TxDMV)

$300,000 (under 26,000 lbs)

California (BHGS)

Vehicle PL & PD per General Order 100

Cargo insurance

Texas (TxDMV)

$5,000 per vehicle ($10,000 aggregate multi-shipper)

California (BHGS)

$20,000

Exam

Texas (TxDMV)

None

California (BHGS)

Open-book Max 4 exam, 70% to pass

Elsewhere, expect some mix of a state motor carrier registration, a state household goods certificate or tariff, and city business licences. Many states also let consumers check a mover's licence online, and customers increasingly do, so make your licence number easy to find on your website, estimates and trucks.

Equipment, crew and insurance beyond the minimums

The biggest purchase is the truck. A 26-foot box truck is the workhorse for local movers: big enough for most homes, under the CDL threshold, and easy to hire drivers for. Many owners lease or buy used trucks to start and add a second vehicle once demand is steady. Track depreciation and maintenance from day one; our depreciation guide explains the tax side.

Around the truck you need furniture pads and blankets, dollies and hand trucks, straps and load bars, shrink wrap, mattress bags, tool kits for disassembly, and floor and door protection for customers' homes. Packing supplies can be a profit line if you sell boxes and packing services.

Your crew is your product. Hire movers as employees: you set their schedules and methods, and states increasingly treat moving helpers as employees, which brings payroll taxes and workers' compensation. Moving has high injury rates, so workers' comp premiums are significant; California requires every licensed mover with employees to carry it. Background checks matter too, because crews work inside customers' homes.

Beyond the federal and state minimums, most movers add general liability for damage to homes and buildings, higher cargo limits for valuable shipments, inland marine coverage for goods in storage or transit, and commercial auto physical damage for the trucks. Our business insurance guide explains each type.

The money: a labelled one-truck example

All figures below are illustrative assumptions for a local mover, not market data. Use your own quotes and local wages.

The company charges $150 an hour for a two-person crew with a 26-foot truck. An average job bills 5 hours, or $750. Each mover is paid $22 an hour for 6 paid hours (including the drive to and from the yard), and payroll taxes and workers' compensation add about 20%, so crew cost is about $317 per job. Fuel, wear and supplies add $60. That leaves about $373 per job to cover fixed costs. Fixed costs, including the truck payment, insurance, yard space, software, licences and marketing, total $90,000 a year.

Try it — moves you need to break even

Monthly Fixed CostsSelling Price per UnitVariable Cost per Unit

Contribution Margin / Unit₹373.00

Contribution Margin Ratio49.73%

Break-Even Revenue₹1,80,965.15

Break-Even Units242

Open the full Break Even Calculator (PDF, save, compare)

The company breaks even at about 241 jobs a year, or 20 a month, before paying the owner. At 40 jobs a month (480 a year), it earns about $89,000 before owner pay and income tax. At 30 a month, about $44,000. Moving is seasonal, with most demand from late spring through summer and at month-ends, so the winter months often run below break-even. Build a cash reserve in summer, and fill quiet months with commercial moves, storage, junk removal or labor-only jobs.

A few pricing practices protect that math: a minimum number of hours per job, a travel or truck fee, clear charges for stairs, long carries and heavy items, and a deposit that's refundable under clear terms. Use the quotation generator to send consistent written quotes, and keep them aligned with your tariff where you're required to have one.

Common mistakes new moving companies make

The first is operating before the authority is active. Advertising interstate moves before your FMCSA authority is granted, or running local moves in Texas without a TxDMV registration, invites penalties and makes your insurance harder to rely on.

The second is lowballing estimates. A non-binding estimate that's far too low caps what you can collect at delivery on interstate moves and creates angry customers everywhere else. Survey properly, or use binding estimates with clear inventories.

The third is weak paperwork on damage. Inventory and condition notes at pickup, photos of high-value items, and signed delivery receipts are what settle claims. Without them, every scratch is your fault.

The fourth is buying too much truck too early. A truck payment is a fixed cost every month, even in January. Start with one truck, or with labor-only work, and add capacity when you're turning jobs away. Finally, don't let a single bad review sink you: reply promptly, handle claims fairly and fast, and show your licence numbers everywhere, because customers comparing movers are looking for exactly that.

Official links

• 49 CFR Part 375 — household goods consumer rulesEstimates, delivery charges, arbitration
• 49 CFR 387.303T — insurance minimumsLiability and HHG cargo
• TxDMV number (Texas)Household goods registration, insurance and fees
• California BHGS — household movingMover licence, exam and insurance

What to do next

Decide whether you'll start local, interstate or labor-only, then read your state's mover rules and apply for your registrations before you advertise. Form your LLC, get insurance quotes early because they shape your budget, and model your jobs with the break-even calculator. When you're ready to hire, read how to hire your first employee.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

What license do you need to start a moving company?

It depends on where you move goods. Interstate moves need a USDOT number and FMCSA household goods operating authority, which costs $300, plus a BOC-3 and insurance on file. Local moves are regulated by states: Texas requires a TxDMV registration for any household goods carrier regardless of truck size, and California requires a household mover licence from the Bureau of Household Goods and Services, with a $500 application fee.

How much insurance does a moving company need?

For interstate household goods work, FMCSA requires liability coverage of $300,000 if your fleet has only vehicles under 10,001 pounds and $750,000 for heavier trucks, plus cargo coverage of $5,000 per vehicle and $10,000 per occurrence. States set their own minimums for local moves, and you'll also need workers' compensation once you have employees.

Do I need a CDL to drive a moving truck?

Not for the typical 26-foot box truck. A commercial driver's license is required for vehicles of 26,001 pounds or more gross vehicle weight rating. But trucks of 10,001 pounds or more used in interstate commerce are commercial motor vehicles, so drivers need DOT medical cards and you must follow hours-of-service and inspection rules even without a CDL.

What's the difference between a binding and non-binding moving estimate?

A binding estimate guarantees the total price for the items and services listed, and the mover may charge for preparing it. A non-binding estimate is the mover's best guess; final charges depend on actual weight and the tariff, and the mover can't charge for it. On interstate moves, a customer with a non-binding estimate only has to pay 110% of the estimate at delivery to get their goods.

Can I start a moving company with just a pickup truck or cargo van?

Yes, for labor-only or small local moves, but the licensing rules still apply. Texas, for example, requires household goods carriers to register regardless of vehicle weight. Labor-only services, where customers rent their own truck and you load and unload, may avoid carrier registration in some states, so check your state's definition of a household goods carrier.

Is a moving company profitable?

It can be, mainly on labor and scheduling. In our labelled example, a one-truck local mover charging $150 an hour for two movers and a truck earns about $373 per job after crew and truck running costs, breaks even at about 241 jobs a year, and makes about $89,000 before owner pay at 40 jobs a month. Damage claims, unpaid hours and slow winters cut that quickly.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.49 CFR 387.303T — Security for the protection of the public: minimum limits — Code of Federal Regulations (via LII) · accessed 9 October 2026
2. 2.49 CFR 375.401 — Estimates — Code of Federal Regulations (via LII) · accessed 9 October 2026
3. 3.49 CFR 375.407 — Charges at delivery on non-binding estimates — Code of Federal Regulations (via LII) · accessed 9 October 2026
4. 4.49 CFR 375.211 — Arbitration program — Code of Federal Regulations (via LII) · accessed 9 October 2026
5. 5.49 CFR 375.201 — Carrier liability for loss and damage — Code of Federal Regulations (via LII) · accessed 9 October 2026
6. 6.TxDMV Number — intrastate motor carrier registration — Texas Department of Motor Vehicles · accessed 9 October 2026
7. 7.Household Moving (HHM) — Applicants — California Bureau of Household Goods and Services · accessed 9 October 2026
8. 8.49 CFR 375.213 — Information for prospective individual shippers — Code of Federal Regulations (via LII) · accessed 9 October 2026
9. 9.49 CFR 387.303 — note on suspension — Code of Federal Regulations (via LII) · accessed 9 October 2026