How to Start a Moving Company
Moving is a licensed, regulated business — the truck is the easy part. Here are the four gates you have to pass, how local and interstate work are regulated differently, the setup sequence, the costs a new operator forgets to price in, and where new companies usually fail.
What this actually takes
Moving is a licensed, regulated business. The truck is the easy part; the paperwork, the insurance, and the pricing model are what decide whether the company survives its second year.
The four gates
- Business registration
- Entity, EIN, local license
- Operating authority
- State for local, federal for interstate
- Insurance
- Liability, cargo, auto, workers’ comp
- A pricing model
- Hourly, flat rate, or both
This is a general overview for people researching the industry, not legal or financial advice. Licensing requirements differ by state and change over time — verify everything with the relevant regulator before you commit money.
Local versus interstate: two different businesses
This is the first real decision, and it determines who regulates you.
| Local (within California) | Interstate | |
|---|---|---|
| Regulator | Bureau of Household Goods and Services (BHGS) | FMCSA, federal |
| Authority needed | California household mover license | USDOT number and household goods operating authority |
| Typical pricing | Hourly, with a required Not to Exceed price | Weight-based or binding flat rate |
| Estimate rules | Written, only after inspecting the goods | Binding, non-binding, or not-to-exceed |
| Required disclosures | Three specific documents to every customer | Federal booklets and valuation options |
The consumer-facing requirements are published — the BHGS consumer page and the FMCSA Protect Your Move program are both worth reading from the operator’s side, because they tell you exactly what you will be held to.
The setup sequence
- Decide the scope firstLocal hourly work, long-distance, labor-only, or a niche like pianos or offices. Each has different equipment, insurance, and licensing needs. Trying to do all of them on day one is the commonest early mistake.
- Form the entity and get the numbersBusiness entity, EIN, state and city business licenses, and a business bank account.
- Get the operating authorityState household mover licensing for intrastate work; USDOT registration and household goods authority for interstate. Budget time here — it is not instant.
- Insure properlyGeneral liability, cargo, commercial auto, and workers’ compensation. Cargo coverage is the one people underestimate, and workers’ comp is not optional once you have employees.
- Build the paperworkEstimate template, moving services agreement, bill of lading, inventory sheet, and the required consumer disclosures. This is what regulators actually check.
- Buy or lease equipmentTruck, dollies, four-wheelers, straps, blankets, shrink wrap, tools, and floor protection. Blankets and straps are cheap; the truck is the capital decision.
- Hire and trainEmployees versus subcontractors is a structural choice with tax, insurance, and liability consequences. Decide it deliberately.
Pricing, and why most new companies get it wrong
A working example helps here. California Movers USA publishes $175 per hour for two movers and one truck on local jobs and staffs them with employees rather than subcontractors. Model that cost structure honestly before you set a rate — the gap between the two staffing models is where most new companies quietly lose money.
The instinct is to price below the established companies. It is also the fastest way to fail, because the rate has to carry costs that are invisible on day one.
- Crew wages plus payroll taxes, not just the hourly wage.
- Workers’ compensation, which for moving work is not cheap.
- Truck payment, fuel, maintenance, and commercial insurance.
- Materials — blankets wear out, shrink wrap and tape are consumed on every job.
- Non-billable time — travel between jobs, loading the truck, admin, quoting.
- Claims. Damage happens. Budget for it rather than being surprised.
- Marketing and lead cost, which in this industry is substantial.
For reference, a standard full-service hourly package in this market runs around $175 per hour for two movers and one truck — with disassembly and reassembly, protection, loading, transport, unloading, and placement included. That is the number to work backwards from when you model your own costs.
The parts nobody warns you about
Seasonality. Summer is frantic and winter is quiet. The business has to survive January on money earned in July.
Claims handling. How you handle the first damaged item defines your reviews for a year. Have a written process before you need it.
Crew retention. Moving is physical work with high turnover. Companies that train and keep people deliver better and cost less in the long run than those that churn day labor.
Building requirements. Certificates of insurance, elevator reservations, and parking permits are routine in dense cities. Not being able to produce a COI loses jobs.
Lead quality. Broker leads are easy to buy and expensive to convert. Direct enquiries and repeat customers are the healthier base.
Where new companies fail
- Operating without proper authority, then getting shut down or reported.
- Underinsuring, and losing everything on one claim.
- Pricing below cost to win jobs, then cutting corners to survive them.
- Giving firm prices without inspecting — which in California is not a valid written estimate.
- No written scope, so every job ends in an argument about what was included.
- Using untrained day labor and absorbing the damage claims that follow.
- Growing the truck fleet faster than the crew that can staff it.
How to verify anyone in this industry
This works whether you are checking a competitor, a partner, or eventually being checked yourself.
For interstate operators, the FMCSA publishes a registered mover search showing registration status, household goods authority, and complaint history. For California intrastate work, the BHGS publishes a license search on its consumer page.
Both are free and take a couple of minutes. If you are planning to build a company in this industry, get familiar with them early — they are the record your future customers will check.
Related reading
From the customer side, which is worth understanding if you are going to serve them: how to choose a local moving company, how to choose an interstate mover, and moving insurance and valuation.
And from the operational side: moving supplies and what each is for, how to pack for a move, and the office moving checklist.
If you are looking for a mover rather than looking to become one, tell us what you are moving.
Questions people ask
Do I need a license to start a moving company?
Yes. Intrastate work in California requires a household mover license from the BHGS; interstate work requires FMCSA registration and household goods authority.
What insurance is required?
General liability, cargo, commercial auto, and workers’ compensation once you have employees. Requirements vary — confirm with your regulator and insurer.
How much does it cost to start?
It depends entirely on whether you buy or lease a truck, and on your insurance rates. The truck and the insurance dominate the number; everything else is comparatively small.
Employees or subcontractors?
A structural decision with tax, insurance, and liability consequences. Get advice specific to your state before deciding.
Can I start with labor only?
Many do. It lowers the capital requirement, and the licensing picture differs from full-service moving — check what applies where you operate.
What kills most new moving companies?
Underpricing and underinsuring, usually together.
General overview only, not legal or financial advice. Reviewed September 2026 — verify current requirements with the FMCSA and your state regulator.