A cargo van or Sprinter is the lowest-cost way into for-hire delivery. No CDL, modest fuel, a van you might already own. That low barrier is real, and it is also why the space is crowded and full of bad advice about when you do and do not need to be registered. Here is how to start a cargo van business the right way, without guessing on the rules.

Step 1: pick your lane

Cargo van work splits into a few real models, and they have different rules and different money:

  • Courier and same-day local: medical, legal, parts runs, inside one metro or state. Often the fastest to start.
  • Final-mile and parcel: delivering for Amazon, FedEx Ground contractors, or regional carriers. Steady volume, strict requirements, margins you do not fully control.
  • Expedited and cargo-van freight: running loads off the boards, sometimes long distance, often crossing state lines.
  • Box-out growth: many van operators use the van to build a track record, then step up to a box truck once they have clean years and cash.

Which lane you pick decides whether you need federal authority, so choose before you register anything.

Step 2: the DOT number question everyone gets wrong

Here is the rule that trips up cargo van operators. Federal USDOT and operating-authority requirements generally attach to vehicles with a GVWR of 10,001 lbs or more. A typical cargo van or Sprinter is rated under 10,001 lbs, so a lot of interstate cargo van work does not require a USDOT number or MC authority at the federal level.

But do not stop reading there, because the exceptions are where people get burned:

  • Heavier Sprinters and some cargo vans are rated right at or above 10,001 lbs. Check the sticker on the door jamb. If your GVWR hits 10,001 interstate for hire, you need the USDOT number and likely authority.
  • Your state may require intrastate registration at a lower threshold. Several states regulate for-hire vehicles regardless of weight.
  • The platform or broker can require more than the government does. Amazon, courier networks, and brokers often require a DOT number, specific insurance, and background checks even when the law does not.

When in doubt, check your exact GVWR and your state's rules, and read DOT number vs MC number so you know which, if any, you need. Guessing "I'm just a van, the rules don't apply" is how people get shut down at a scale or dropped by a platform.

Step 3: form the business

Even at this scale, set up an LLC (roughly $50 to $500), get a free EIN, and open a business bank account. If you plan to contract with Amazon, FedEx Ground partners, or courier networks, they will want to see a real business entity and commercial insurance, not a personal name and a personal auto policy.

Step 4: get commercial insurance, not a personal auto policy

This is the step that ends more cargo van businesses than any other, because people try to run commercial deliveries on a personal auto policy. When the insurer finds out the van was being used for hire, they can deny the claim and drop you. You need a commercial auto policy built for delivery use, and for most contract work you will also need cargo coverage and often general liability.

If you do have a USDOT number, your liability is filed with FMCSA and the broker-standard limit climbs to $1,000,000. We keep the coverage and cost detail in cargo van and Sprinter van insurance so this guide can focus on getting started.

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Step 5: find the work

Your realistic channels, roughly easiest to hardest to land:

  • Courier apps and networks: sign-on is quick, pay is modest, good for building a reputation.
  • Final-mile and Amazon-type contracts: steadier volume, strict insurance and compliance, application and approval required.
  • Expedited load boards: Sylectus and cargo-van-focused boards, where you negotiate your own rates on longer runs.
  • Direct local accounts: pharmacies, labs, print shops, parts suppliers. The hardest to get and the best margins, because there is no middleman.

Whatever you run, work your cost per mile. Vans feel cheap to run until you count fuel, tires, maintenance, and the miles you drive back empty.

What it really costs to start in 2026

If you already own a suitable van, cargo van is genuinely one of the lowest-cost starts in the industry:

  • LLC and EIN: $50 to $500.
  • USDOT and authority: free to $300, only if your weight or model requires it.
  • Commercial insurance down payment: usually the biggest single number, and it is non-negotiable for contract work.
  • A used cargo van or Sprinter: roughly $12,000 to $45,000 depending on age and mileage if you need to buy one.

Realistically, starting with a van you already own, you can be legal and insured for a few thousand dollars plus the insurance. Starting from scratch with a bought van, figure $15,000 to $50,000 all-in.

Get a real quote on your operation

The honest truth

Cargo van delivery has the lowest barrier to entry in trucking, which means the most competition and the thinnest margins. The operators who win treat it like a business: real commercial insurance, a proper entity, tight cost-per-mile discipline, and a plan to either build a book of direct accounts or step up to heavier equipment. The ones who fail try to run commercial freight on a personal policy and get wiped out by one claim.

How McClure helps

We write commercial cargo van and Sprinter coverage for real delivery operations, and if your van crosses the weight line into DOT territory, we handle the federal filing too. Start your application here and tell us what you are hauling and who you are contracting with, so we build coverage that actually passes their requirements the first time.