How to Start a Moving Company: Licenses, Costs (2026)

Quick answer: To start a moving company, choose local or long-distance service, form an LLC, get a USDOT number and household goods operating authority (MC number) from FMCSA if you will move goods across state lines, add any state mover license, buy liability and cargo insurance, lease or buy trucks, hire a reliable crew and set clear hourly or weight-based pricing.

Moving is a service business with steady demand: people relocate for jobs, family, school and housing changes year round, with peaks in summer and at month ends. It is also heavily regulated for interstate work and physically demanding, with real risk of injuries and damage claims. This guide covers how to start a moving company in 2026, including federal and state licensing, insurance, equipment, pricing and invoicing. It is general information, not legal advice.

What does a moving company do?

Moving companies transport household goods or business property from one place to another. Service types include:

• Local moves: within one metro area or state, usually priced by the hour.
• Long-distance and interstate moves: across state lines, usually priced by weight and distance, and regulated by the Federal Motor Carrier Safety Administration (FMCSA).
• Labor-only moving: loading and unloading rental trucks or portable containers.
• Packing and unpacking services and packing materials.
• Specialty moves: pianos, safes, antiques, office and commercial moves.
• Storage: short- or long-term storage between homes.

What licenses does a moving company need?

Interstate moves: FMCSA registration

If you will move household goods across state lines for compensation, you need federal registration through FMCSA:

Requirement	What it is
USDOT number	Identifies your company for safety monitoring; required for interstate commercial vehicles above certain weights
Household goods operating authority (MC number)	Authorizes you to move household goods for hire across state lines. The filing fee has long been $300 per authority type; confirm on FMCSA's site
Process agent designation (BOC-3)	Names agents in each state to receive legal papers
Liability insurance filing	Proof of public liability coverage filed by your insurer, at federal minimum levels
Cargo insurance filing	Required for household goods carriers
Dispute settlement program	Participation in a neutral arbitration program for loss and damage claims
Tariff	Published rates, rules and charges available to customers
Unified Carrier Registration (UCR)	Annual registration fee based on fleet size

New household goods authorities go through a protest period and, later, a safety audit of new entrants. FMCSA explains the rules for movers at its Protect Your Move site. Our guide to starting a trucking business covers USDOT, UCR, IRP and IFTA in more detail.

Local and intrastate moves: state rules

Many states license intrastate movers through a public utility commission, department of transportation or consumer affairs agency, with their own insurance, tariff and estimate rules. Some states also require a USDOT number for intrastate commercial vehicles. Check your state's requirements before you take a paid job.

General business licenses

• Form an LLC or corporation (see how to start an LLC).
• Get an EIN for payroll and banking.
• City or county business license.
• Sales tax registration if you sell packing materials or storage where taxable.

What insurance does a moving company need?

• Commercial auto liability: for your trucks, at or above federal and state minimums.
• Cargo (motor truck cargo) insurance: covers customers' goods in your care.
• General liability: property damage at the customer's home, such as a scraped wall or broken door frame.
• Workers' compensation: moving has high injury rates and premiums reflect that; most states require it once you have employees. See our workers' compensation guide.
• Warehouse legal liability if you offer storage.
• Umbrella coverage as you grow.

For an overview of policies, see our guide to business insurance.

How much does it cost to start a moving company?

Costs depend mostly on trucks. The table shows typical categories with illustrative planning figures; get real quotes for your market.

Item	Notes	Illustrative cost
Box truck (used, 20 to 26 ft)	Buy, lease or finance	Wide range, often tens of thousands of dollars
Equipment	Dollies, hand trucks, furniture pads, straps, ramps, tools, wardrobe boxes	$2,000 to $5,000
Insurance (first-year deposit)	Auto, cargo, GL, workers' comp	Often the largest recurring cost
Licensing and registration	LLC, local license, FMCSA authority if interstate, UCR	Hundreds of dollars and up
Marketing	Website, truck wrap, Google Business Profile, reviews	$1,000 to $5,000
Software	Estimating, scheduling, invoicing	Monthly subscription or free tools
Working capital	Payroll, fuel and repairs for 2 to 3 months	Plan for slow early months

Our guide to startup costs shows how to organize these into a budget lenders will accept.

How to start a moving company: step by step

1. Pick your service area and niche: local apartment moves, full-service residential, senior moves, office moves or long-distance.
2. Write a business plan with pricing, crew costs and a marketing plan. Use our business plan template.
3. Form the business and open a business bank account.
4. Get licenses: state mover license, and USDOT plus household goods authority if interstate.
5. Buy insurance and have your insurer file proof with FMCSA if required.
6. Get trucks and equipment. Many start with one truck and add a second after steady bookings.
7. Hire and train a crew. Background checks, lifting technique, padding and wrapping, and customer service. Read hiring your first employee for payroll setup.
8. Set pricing, estimates and contracts. Written estimates, an order for service and a bill of lading for each move.
9. Market locally. Google Business Profile, reviews, realtor and property manager partnerships.
10. Invoice and collect promptly, ideally on the day of the move.

Local vs interstate moving: what changes?

Item	Local or intrastate	Interstate
Regulator	State agency (varies) and local licensing	FMCSA, plus state rules where you are based
Registration	State mover license where required	USDOT number and household goods authority
Typical pricing	Hourly with a minimum	Weight and distance, plus accessorial charges
Estimates	State rules, often written estimates	Binding or non-binding written estimates under federal rules
Liability options	State rules vary	Full value protection or released value (60 cents per pound per article)
Required consumer documents	Varies by state	Rights and Responsibilities information, Ready to Move brochure, bill of lading
Drivers	CDL if vehicle requires it	CDL if required, DOT medical card, hours-of-service and logs

Most new movers start local, build reviews and cash flow, then apply for interstate authority once they have the trucks, insurance and systems to handle long-distance jobs.

How to write an accurate moving estimate

1. Survey the home. Do an in-person or video walkthrough of every room, closet, garage, attic and storage unit. Phone estimates based on "a two-bedroom" are the leading cause of disputes.
2. Build an inventory. List furniture and estimate boxes. Note heavy or specialty items such as pianos, safes and gym equipment.
3. Check access. Stairs, elevators that need booking, long carries from the truck, parking permits and narrow streets that need a shuttle truck.
4. Estimate time or weight. For local moves, estimate crew hours from volume and access; for long distance, estimate weight from the inventory.
5. List extras. Packing, materials, disassembly, storage and travel fees.
6. Put it in writing. Show what is included, the pricing basis, deposit, cancellation terms and liability option, and have the customer sign.

A good written estimate becomes the basis for the invoice, so customers see the same line items on both. You can draft estimates with our estimate template.

How should a moving company price its services?

Local moves are commonly priced by the hour for a crew and truck, with a minimum (often two or three hours), plus a travel fee and materials. Long-distance and interstate moves are typically priced by shipment weight and distance, with accessorial charges for stairs, long carries, shuttles and packing.

Worked example: pricing a local two-bedroom move

Your costs per hour for a three-person crew and one truck (illustrative):

• Labor: 3 movers x $22 per hour wages = $66, plus about 20% for payroll taxes and workers' comp = $79.20
• Truck (payment, insurance, fuel, maintenance) averaged per job hour = $28
• Overhead (marketing, software, office, liability insurance) per job hour = $18
• Total cost per hour = $125.20

To earn roughly a 25% margin on price, divide cost by 0.75: $125.20 / 0.75 = about $167 per hour. You might set $169 per hour for three movers and a truck, with a three-hour minimum.

Sample moving company invoice

Description	Qty	Rate	Amount
3 movers and 26 ft truck (start 8:00, finish 13:30)	5.5 hrs	$169.00	$929.50
Travel fee (round trip from depot)	1	$85.00	$85.00
Wardrobe boxes (purchased)	4	$14.00	$56.00
Mattress bags (purchased)	2	$9.00	$18.00
Stair carry, 3rd floor walk-up	1	$75.00	$75.00
Subtotal			$1,163.50
Less deposit paid at booking			-$150.00
Balance due on completion			$1,013.50

List packing materials separately because they may be taxable in your state; use the sales tax calculator if so. Our moving company invoice template shows a full layout, and you can create one in the free invoice generator. Taking a booking deposit reduces no-shows; see deposit invoices.

Common mistakes when starting a moving company

• Taking interstate jobs without authority. Operating without registration can bring federal penalties and leaves customers unprotected.
• Underinsuring. One damaged piano or injured mover can wipe out a year's profit.
• Vague estimates. Unclear estimates lead to disputes and bad reviews. Put assumptions in writing.
• Pricing below cost. Matching the cheapest competitor without knowing your hourly cost is a fast way to fail.
• Treating movers as contractors. Crews who work your schedule with your trucks are usually employees; misclassification brings back taxes and penalties.
• Skipping inventory sheets. Documenting item condition at pickup protects you in damage claims.
• Holding goods hostage. Federal rules limit how much an interstate mover can demand at delivery; never refuse delivery to extract extra charges.

How to manage seasonality and cash flow

Moving demand is uneven. Summer, the end of each month and the end of school terms are busy, while winter weekdays can be quiet. Plan for it: raise rates or minimums on peak days, offer discounts for midweek and off-season moves, build commercial and office clients who can move on weekends year round, and keep a cash reserve for slow months when truck payments and insurance still come due. Collecting a deposit at booking and the balance on completion, by card or bank transfer, keeps receivables close to zero.

Growth ideas for moving companies

• Add packing services and sell packing materials.
• Offer storage through a partner warehouse or your own.
• Build relationships with real estate agents, senior living communities and corporate HR departments.
• Add junk removal or donation hauling for clients clearing out before a move.
• Expand to office moves with weekend scheduling.

Ready to roll

Knowing how to start a moving company means getting licensing, insurance and pricing right before the first truck leaves the lot: FMCSA authority for interstate work, state licensing for local moves, solid coverage and an hourly rate built from real costs. When the job is done, send a clear invoice with our free invoice generator: no sign-up, and it builds the PDF in your browser for immediate download.