The Official Roadmap to Starting a Moving Company in Delaware
A verified guide sourced exclusively from the DelDOT Office of Public Carrier Regulation (OPC).
Financial Check: The "Drayperson" Tax
Delaware imposes a unique "Gross Receipts Tax" on movers (Draypersons) for intrastate moves. Are you prepared to file this monthly/quarterly?
Step 1: CPCN Application
Authority: DelDOT Office of Public Carrier Regulation (OPC).
- Apply: Submit application for "Certificate of Public Convenience and Necessity" (CPCN).
- Fee: $400.00 one-time filing fee for original authority.
- Process: Your application will be reviewed for financial fitness and safety compliance.
Step 2: Insurance & Tariff
You must file rates and proof of coverage.
- Liability: Minimum $350,000 for intrastate property carriers (though $750k recommended for interstate alignment).
- Tariff: You must file a tariff listing your rates. Filing fee is $100.00.
- Changes: Any future rate change costs $100 to file.
Step 3: Vehicle Inspections
DelDOT is strict about vehicle safety.
- Frequency: Public carrier vehicles must be inspected semi-annually (every 6 months).
- Fee: $20.00 per inspection ($40/year per truck).
- Sticker: Passing vehicles receive a compliance sticker/medallion.
Step 4: Operational "Must Haves"
Required by Delaware law.
- Business License: Must obtain a specific "Drayperson/Mover" business license from the Division of Revenue ($75/year).
- Financials: Must file an annual financial report with OPC ($7.50 fee).
- Markings: Name and CPCN number must be displayed on the vehicle.
The "Don't Get Fined" Zone
- Late Fees: Late filing of your annual financial report triggers a $100.00 fine.
- Drayperson Tax: You owe ~0.3983% tax on intrastate gross receipts (first $100k/month often exempt). Interstate moves are exempt.
- Inspection: Missing a semi-annual inspection results in a $10 late fee plus potential suspension.
Official Government Portals
Frequently Asked Questions
1. What license do I need in Delaware?
You need a "Certificate of Public Convenience and Necessity" (CPCN) issued by the DelDOT Office of Public Carrier Regulation (OPC). You also need a business license from the Division of Revenue categorized as a "Drayperson".
2. What is a "Drayperson"?
"Drayperson" is the official Delaware tax classification for movers. It requires you to pay a Gross Receipts Tax (approx. 0.3983%) on revenue from intrastate moves. Interstate moves are exempt from this specific tax.
3. How much is the CPCN fee?
The filing fee for a new CPCN application is $400.00. This is a one-time fee, provided you maintain your compliance and pay annual renewal/filing fees.
4. How often must trucks be inspected?
Delaware requires public carrier vehicles to be inspected semi-annually (every 6 months). The fee is $20.00 per inspection per vehicle.
5. Do I need to file a Tariff?
Yes. You must file a tariff listing your rates and charges with the OPC. The filing fee is $100.00. You cannot change your rates without filing an amended tariff and paying the fee again.
6. What are the insurance requirements?
State regulations typically require minimum liability coverage of $350,000 for intrastate property carriers. However, most movers carry $750,000 to comply with federal standards if they ever cross state lines.
7. Are there annual reporting requirements?
Yes. You must file an annual financial report with the OPC. The filing fee is $7.50. Late filing results in a $100.00 penalty.
8. Do I need a USDOT number?
Yes. A USDOT number is required for vehicle registration and identification, and it is a standard requirement for all commercial motor carriers in Delaware.
9. Can I charge differently than my tariff?
No. You must charge the exact rates listed in your filed tariff. Charging more or less (without a filed discount provision) is a violation of state regulations.
10. What if I am late on inspections?
If you miss your semi-annual inspection window, you will be charged a $10.00 late fee per vehicle and risk having your vehicle's operating authority suspended.
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