By the end of this lesson you can
- Choose a business structure and pricing model
- Know what a dispatch agreement should cover
- Find and keep your first carriers
Start here
The simple version
Think of it like this: Starting a dispatch business is like opening a small shop. You set up the shop, decide your prices, write down the rules with each customer, then take good care of them so they stay.
- Set up your business properly with the state and the IRS.
- Pick a simple price: a percent of each load, or a set weekly fee.
- Sign a written agreement with every truck company you help.
- Start with a few trucks and do a great job for them.
Words to know
- LLC
- A common type of small business you register with your state.
- EIN
- A free tax ID number for your business from the IRS.
- Dispatch agreement
- The written deal between you and the truck company.
- Client
- A truck company that pays you to dispatch for them.
Got the idea? The full lesson below goes step by step, with real examples, practice and checklists.
Set up the business
- Structure: many dispatchers form an LLC for liability separation. Business formation is handled by your state; talk to an accountant about tax treatment.
- EIN: get a free Employer Identification Number from the IRS at irs.gov.
- Bank account: a separate business account for your fees.
- Insurance: ask an insurance agent whether you need general liability or errors and omissions coverage for your setup.
- Authority: decide based on lesson 2 whether you'll work as a bona fide agent or need broker authority.
Choose a pricing model
| Model | How it works | Watch out for |
|---|---|---|
| Percentage per load | A percentage of each load's rate | Define the base: linehaul only, linehaul plus fuel, or including accessorials |
| Flat weekly fee | A fixed fee per truck per week | Say whether weeks with no loads are billed |
| Flat per load | A fixed fee per booked load | Short loads become expensive for the carrier |
For reference, Trucking Help Center's own dispatch service charges 5% of the rate confirmation total (linehaul plus fuel surcharge, not accessorials) or $250 per week, only in weeks a load is booked, with no contract. Whatever you choose, write it down clearly so there's never a dispute.
What a dispatch agreement should cover
Have a transportation attorney draft or review your agreement. Points to cover:
- The carrier appoints you as its agent to find and book loads on its behalf (the bona fide agent factor from lesson 2).
- Exactly which services you provide and which you don't.
- Your fee, its base, when it's earned and how and when the carrier pays it.
- Your authority to sign rate confirmations and setup packets for the carrier, and that the carrier approves each load.
- The carrier can refuse any load; no forced dispatch.
- Who is responsible for safety, compliance, insurance and the driver's hours (the carrier).
- Confidentiality of the carrier's information.
- How either side can end the agreement and what happens to loads in progress.
Finding your first carriers
- New owner-operators who just got their authority often need help most. Offer a clear, simple setup.
- Show your process: how you vet brokers, how you track loads, how you report each week.
- Ask satisfied carriers for referrals, and never make claims about earnings you can't back up.
- Start small. Two or three trucks you serve well beat ten you can't keep loaded.
Tools and the numbers to track
You need a phone line, email, at least one load board, a way to store documents, and a simple system (a spreadsheet or dispatch software) that tracks every load. Each week, review for each truck:
- Gross revenue and loaded miles, and true RPM including deadhead.
- Deadhead percentage.
- Days with no load booked.
- Accessorials requested vs paid.
- Invoices outstanding past due.
Send each carrier a weekly report. Clear numbers build the trust that keeps clients.
Practice scenario
Your first client conversation
An owner-operator asks: "What do you charge, what exactly do you do, and can I cancel any time?"
Your turn:
- How do you answer each question?
- What must be in writing before you start?
- What will you report to them each week?
Think it through, then show the model answer
- Give your pricing model with its base (for example, a percentage of the rate con total excluding accessorials, or a flat weekly fee and whether idle weeks are billed), list your services and what you don't do, and explain your notice terms.
- A signed dispatch agreement appointing you as their agent, with services, fee, approval of each load, no forced dispatch, responsibilities and termination terms. Have an attorney review your template.
- Loads booked, gross revenue, loaded and deadhead miles, true RPM, idle days, accessorials requested vs paid and invoices outstanding.
Common mistakes
- Starting without a written agreement.
- Promising earnings you can't back up.
- Taking on more trucks than you can keep loaded and documented.
- Mixing your fee with load payments.
Weekly carrier report
Send every Monday for the previous week.
Week of ___ Carrier ___ Truck ___ Loads booked: ___ Gross revenue: $___ Loaded miles ___ Deadhead ___ (___%) True RPM: $___ Days with no load: ___ Accessorials requested $___ / paid $___ Invoices past due: ___ ($___) Next week's plan: ___
Key takeaways
- Form the business properly, decide your authority position, and keep fees separate from load money.
- Choose one clear pricing model and write its base into the agreement.
- Track true RPM, deadhead, idle days and receivables for every truck, every week.
Check yourself
Answer in your head first, then tap to compare.
1. Why should the dispatch agreement say the carrier appoints you as its agent?
Because FMCSA's guidance lists a written contract appointing the dispatch service as the carrier's agent as a factor for bona fide agent status.
2. Your fee is "10% of the load." What's missing?
The base: linehaul only, linehaul plus fuel, or including accessorials. Spell it out.
3. Where do you get an EIN, and what does it cost?
From the IRS at irs.gov. It's free.
Free THC tools for this lesson
Official sources
- FMCSA: Definitions of Broker and Bona Fide Agents (final guidance, June 16, 2023)
- IRS: Apply for an Employer Identification Number (EIN)
General information, not legal or tax advice. Rules change; confirm your situation with the agency or a professional.