Posted by: May 05, 2023

How to start a logistics company in Texas

Starting a logistics company can be a lucrative move in today’s economy. Setting up your business in Texas can be a smart choice because Texas has been growing in population and is likely to keep doing so. 

Starting a logistics company is a process that involves identifying a niche within the market and drafting a cohesive business plan. You’ll also need to decide on a name and business structure, secure any necessary financing, and apply for required permits. An attorney can help you through this process, taking into account the needs of your particular company.  

What Is a Logistics Company?

How to Start a Logistics Company in Texas

Logistics companies transport either passengers or freight from one location to another. They can comprise anything from a one-truck operation to a global shipping company. Some international examples include UPS, Federal Express, and DHL. A local moving or bike rental company also qualifies as a logistics company. 

Why Start a Texas Logistics Company?

Texas is an ideal place to start a logistics company. According to the census bureau, Texas has grown more than any other state in the United States since 2000 and has a population of more than 30 million. This growth is projected to continue as the population should almost double by 2050. More people means more opportunities for new businesses in Texas. 

What Kind of Logistics Company Do You Want to Form?

Because logistics is so broad, it is crucial to establish a niche, or a specialty, within the field. In starting a logistics company, it is necessary to identify what or who needs to be moved. Someone starting a company must also select the freight or passengers’ starting point and destination. 

You’ll also want to consider the size and scope of your operation. A logistics company can begin with one van or attempt to be something more extensive from the outset. 

It may be helpful to ask specific questions to help decide whether to start a logistics company. These include:

  • Does the company I want to create move people or goods?
  • Where will the company move them from?
  • Where will the company move them to?
  • Do you want (or need) to start small or big?
  • How much access to capital do you have to start a business?

Answering these questions in as much detail as possible will help you craft a business plan.

Logistics Company Business Plan

As with any new business, it is vital to develop a business plan. A company must first have a name. Think about the niche and be creative. 

A business plan requires several elements, including:

  • Executive summary, which briefly explains your business and its purpose;
  • Company description, which outlines the company and provides its mission and vision statements;
  • Market analysis, which assesses competitors and your place in the market;
  • Marketing plan, which describes how you plan to sell to your target market; and
  • Financial analysis, which explains the finances of your business, including income statements and balance sheets.

Crafting a well-thought-out business plan can help you prepare for the road ahead.

What Is Your Business Structure?

When starting a logistics company, you’ll need to decide which business structure to use. Given your business’s goals and requirements, a business attorney can help you choose the best structure for your business.

Sole Proprietorship

A sole proprietorship is the simplest form of business. It means an individual controls the company, and outside of licensing, the paperwork is kept to a minimum. The government does not tax the business directly but instead taxes the owner on their personal tax return. 

However, a sole proprietorship also has a significant drawback. If someone sues the company, it provides no legal protection; the other party can come after the owner’s personal assets.


A partnership is a business owned by two or more individuals. As with a sole proprietorship, the government taxes owners on their personal tax return but does not separately tax the business. 

Partners can either be general, meaning they have complete control over the business, or limited, meaning that they are investors without control over the company. The downside of a partnership is that, like a sole proprietorship, it lacks limited liability. However, Texas also recognizes LLPs, general partnerships that offer limited liability to partners.

Limited Liability Company

A limited liability company (LLC) can have one or more members in Texas. An LLC can elect to be taxed like a partnership so that the company’s tax obligations pass through to the members individually. But it also protects members’ personal assets if the company is sued.   


A corporation is also an option in Texas. A corporation provides limited liability, thus protecting shareholders from personal liability. However, it also has an additional layer of taxation that an LLC does not. Essentially, the government assesses taxes twice—once on the business’s profits and again on individual shareholders’ distributions. 

Are There Licensing Requirements for a Texas Logistics Company? 

Yes. You may need to obtain a general business license, commercial driver’s licenses, or a warehouse license. In addition, there may be special licensing requirements based on the niche of your business. Licensing requirements may be based on federal, state, or local laws. This can make it difficult to identify all the licenses you need. Luckily, a skilled attorney can help you navigate this stage of the process. 

Consult With us for More on How to Start a Logistics Company

Adam Curley of the Curley Law Firm is a knowledgeable attorney with over a decade of experience. His practice focuses on business law, and he knows how to start a logistics company in Texas. Contact us today to discuss how to establish a Texas logistics company.