To get a delivery contract, treat the work as a business from day one: register a legal entity, get your federal operating credentials, carry the insurance shippers actually require, and have a professional carrier packet ready the moment a broker or client asks for it. Most new operators move from business registration to a first contract in four to eight weeks, and the upfront spend on registrations and insurance runs into the low thousands before a single delivery happens.
Set Up the Business First
Form a state entity, usually an LLC or corporation, before anything else. Then apply for a free Employer Identification Number through the IRS online tool; the application takes minutes, and you need the EIN to open a business bank account and to file for motor carrier credentials.1Internal Revenue Service. Get an Employer Identification Number The IRS may delay the EIN if your state entity isn’t on file yet, so sequence matters.
If you plan to haul freight across state lines in vehicles rated 10,001 pounds or more, you fall under federal motor carrier regulation. Any self-propelled vehicle at that weight used in interstate commerce is a commercial motor vehicle and must display a USDOT number.2eCFR. Part 390 Federal Motor Carrier Safety Regulations; General You apply through FMCSA’s Unified Registration System. For-hire carriers also need Motor Carrier (MC) operating authority. The MC authority fee is $300, and processing typically takes about 25 business days.3FMCSA. Get Operating Authority (Docket Number)
Two more federal filings catch new carriers off guard. You must file a BOC-3 designating a process agent in every state where you operate, and each agent has to physically reside in that state. A P.O. box doesn’t qualify.4FMCSA. Form BOC-3 – Designation of Agents for Service of Process Most carriers pay a commercial filing service a flat annual fee to cover all 50 states. You also owe the Unified Carrier Registration fee each year; for a small operation with two or fewer vehicles, the 2026 UCR fee is $46.5Unified Carrier Registration. Fee Brackets
Insurance Is the Gate
Federal law sets hard minimums. For-hire carriers running vehicles rated 10,001 pounds or more must carry at least $750,000 in public liability for non-hazardous property. Carriers whose fleets are entirely under 10,001 pounds face a $300,000 federal floor.6eCFR. 49 CFR Part 387 – Minimum Levels of Financial Responsibility for Motor Carriers Hazmat haulers sometimes exceed $5 million.
Those are floors. Shippers and brokers routinely require more: cargo insurance of $25,000 to $100,000 to cover damage to the goods, plus commercial general liability of $1,000,000 per occurrence. You prove it with an ACORD 25 Certificate of Liability Insurance from your agent. Without that certificate on hand, you won’t clear the first screening round with most brokers.
Build the Carrier Packet
A carrier packet is the standard bundle of documents brokers, shippers, and 3PL companies expect before they’ll consider you. Having one ready to send within an hour of a request marks you as a professional operation. Most packets include:
- A completed IRS Form W-9 with your taxpayer identification number so the client can report payments to you.7Internal Revenue Service. About Form W-9, Request for Taxpayer Identification Number and Certification
- An ACORD 25 showing current liability and cargo coverage, with the client listed as certificate holder.
- A copy of your MC authority grant letter and USDOT registration.
- Clean motor vehicle reports for every driver, typically covering the past three years.
- An equipment list with make, model, year, and gross vehicle weight rating for each vehicle.
- Workers’ compensation proof if you have employees; some owner-operator contracts also ask for it.
- Maintenance records showing inspections, oil changes, tire replacements, and brake service for each vehicle.
Some clients also ask for bank statements or financial references to confirm you can absorb costs between invoice payments. Net 30 or Net 60 terms mean you could wait two months for your first check, so documented cash reserves matter.
Where to Find Delivery Contracts
Freight Brokers and 3PL Companies
Third-party logistics firms are the fastest path to steady freight. They sit between shippers and carriers, managing pools of loads and recurring routes. Once you’re in a broker’s system with an approved packet, you start seeing opportunities that match your equipment and service area. Digital load boards are the main marketplace. Costs vary by platform and tier; a major board like DAT runs from roughly $50 to over $300 per month, with cheaper plans showing available loads and premium tiers adding rate analytics and lane forecasting.
Government Contracts
Federal agencies post courier and delivery solicitations through SAM.gov, the central portal for government procurement. These contracts range from moving sensitive documents between offices to regular medical supply runs for VA facilities.8SAM.gov. Contract Opportunities Government work tends to pay reliably and on schedule, though the bidding process involves more paperwork than private contracts. An active SAM.gov registration is required, and it in turn requires your EIN and USDOT information.
Direct Outreach to Local Businesses
Pharmacies, auto parts stores, medical equipment suppliers, florists, and specialty food distributors all need regular delivery, and many prefer a single local contractor over juggling gig drivers. Walking in and speaking with the owner or operations manager skips every layer of competition on a load board. Bring a one-page summary of services, your insurance certificate, and a proposed rate structure. These relationships often start small and grow with reliability.
Branded Delivery Programs
Amazon and FedEx run structured contractor programs with built-in volume. Amazon’s Delivery Service Partner program requires proof of at least $30,000 in liquid assets to apply, and credit score is a significant factor in approval.9Amazon. Start a Business with Amazon Delivery Service Partner Program FedEx Ground uses an independent service provider model in which contractors own designated routes and hire their own drivers. Both programs offer volume but come with strict performance standards and limited pricing flexibility, so read the terms carefully before committing.
Submitting a Bid and What Happens Next
Most brokers and 3PLs use proprietary vendor management portals where you upload your carrier packet directly. For government solicitations, submit through SAM.gov or a linked procurement system. When a private company takes bids by email, put the solicitation or RFP number in the subject line so it reaches the right person instead of getting buried.
Expect a review period. The contracting party verifies your insurance, checks your safety record in FMCSA’s system, and compares your equipment list to the contract requirements. If you pass initial screening, a representative usually reaches out to discuss pricing, lane details, and start dates. Respond quickly. A carrier who replies the same day stands out from one who takes a week. Final approval sometimes includes a background check or a physical vehicle inspection.
Contract Terms to Read Before You Sign
This is where new carriers get burned, because they’re so focused on landing the deal that they skim the terms. Read the whole agreement.
Payment Terms and Fuel Surcharges
Net 30 and Net 60 schedules are standard, so you may not see money for 30 to 60 days after invoicing. If your cash flow can’t absorb that gap, factor the cost of invoice factoring into your bid. Check whether the contract includes a fuel surcharge that adjusts your rate when diesel prices rise. A typical formula uses a baseline fuel price and your vehicle’s average fuel economy to calculate a per-mile surcharge above the baseline. Without that clause, a sudden spike eats directly into your margin.
Detention Pay
Loading docks don’t always run on schedule. Detention pay compensates you for wait time beyond a grace period, commonly two hours. Rates generally run from $25 to $100 per hour once the grace period ends. If the contract is silent on detention, negotiate it in before signing. Four unpaid hours at a dock can turn a profitable route into a losing one.
Termination Clauses
Look at how much notice either party must give to end the contract. Windows typically run 30 to 90 days. A contract that lets the client terminate on seven days’ notice while requiring you to give 60 is a red flag. Aim for roughly symmetrical terms so a client can’t drop you without warning.
Indemnification
Nearly every delivery contract requires the carrier to indemnify the client, meaning you absorb legal and financial responsibility for losses during delivery. That’s standard. Review the scope. Some clauses are drafted so broadly that they make you responsible for the client’s own negligence, which your insurance may not cover.
Independent Contractor Classification
The contract should clearly establish that you’re an independent contractor, not an employee. The IRS evaluates this across three categories: behavioral control (does the client dictate how you do the work), financial control (who provides tools, how you’re paid, whether expenses are reimbursed), and the nature of the relationship (written contracts, benefits, permanence).10Internal Revenue Service. Independent Contractor (Self-Employed) or Employee? A contract that calls you independent but then dictates your routes, requires a uniform, and sets your hours creates misclassification risk for both parties.
Non-Solicitation and Force Majeure
Many broker contracts include non-solicitation clauses that prevent you from working directly with a shipper you were introduced to through the broker. Violations can trigger steep penalties, so read the duration and scope. Force majeure clauses excuse performance failures caused by events outside your control, like severe weather, natural disasters, or government shutdowns. Courts tend to read these clauses narrowly, covering only the events specifically listed, so vague wording like “other unforeseen circumstances” may protect you less than you’d expect.
Taxes You’ll Owe Once the Work Starts
As an independent contractor, nobody withholds taxes from your payments. You owe the full self-employment tax of 15.3%, which covers both halves of Social Security (12.4%) and Medicare (2.9%). The Social Security portion applies to net earnings up to $184,500 in 2026; Medicare has no cap.11Social Security Administration. Contribution and Benefit Base An additional 0.9% Medicare tax applies to net earnings above $200,000.
The IRS expects quarterly estimated payments covering both income tax and self-employment tax. The four due dates are April 15, June 15, September 15, and January 15 of the following year. Owing $1,000 or more at filing time without sufficient quarterly payments triggers an underpayment penalty.12Internal Revenue Service. Estimated Tax Contractors who don’t budget quarterly often get a painful surprise at tax time.