How to start a cargo van business — the steps in real order

Checked October 2026

The short answer: a cargo van business starts in this order — pick the kind of work, get the cargo van, set up the business papers, buy delivery insurance, choose your legal path, and then go to the companies that give out the work. Most new drivers do this backwards. They buy the cargo van first and ask about work last, and then the cargo van sits. The work comes from companies, so the steps that lead to companies matter most.

Step 1: Pick the kind of work before you pick the cargo van

Cargo van work comes in three shapes. Local delivery routes for businesses that ship small goods keep you near home and pay by the route, the stop, or the day. Over-the-road expedite work sends you hundreds of miles per run and pays by the mile. Delivery apps pay by the job and fill gaps. Each shape asks for a different cargo van, a different insurance setup, and a different legal path, so choose the shape first.

Step 2: Get a cargo van that fits the work

For route and expedite work, companies look for a cargo van or sprinter van in good shape that can start today. A high roof helps because tall freight is common. Buy the best cargo van your money reaches without a payment that eats the month, because a heavy payment turns every slow week into an emergency. Our guide to choosing the cargo van walks through the real choices.

Step 3: Set up the business papers

Companies contract with businesses, not with a person and a phone number. Many drivers form an LLC and get an EIN, which is the tax number the IRS gives a business for free. A business bank account keeps the money clean and makes tax time simple. Some companies ask for the LLC and EIN before they will even talk, and job postings for cargo van owner operators list them as basic requirements.

Step 4: Buy insurance for delivery work

Your personal car policy does not cover delivery work. You need a policy written for a cargo van doing deliveries, and companies ask to see proof before they give you work. Prices run wide — published prices run from about $2,400 to about $15,000 for a year — because the state, your record, and the work you carry all move the price. Our insurance cost guide explains what drives the number.

Step 5: Choose your legal path

There are three lawful ways to run. You can work local routes inside your state under the companies' own setups, which is where most new drivers start. You can lease on to a carrier and run under the carrier's authority and numbers. Or you can get your own DOT number and operating authority and haul for hire across state lines as your own carrier. Our DOT number guide gives the plain weight and state-line rules, and our own-authority guide gives the full filing steps.

Step 6: Go to the companies

This is the step the whole business stands on. Distributors, warehouses, supply houses, and local businesses that ship small goods give this work to drivers they know and can call. There is no office where the work is handed out to strangers. You find the companies in your city, reach the person who signs up drivers, and get on the list before they need you.