Steering Your Trucking Career: How to Become an Owner Operator

Becoming an owner-operator might seem like an excellent career move if you want to become independent. However, there are a few things you need to consider before deciding.

At some point, truckers will check for owner operator jobs because they want to provide independent services. However, there are lots of doubts that need to be solved. You are starting from the things you need to start your business. You might be tired of working for a company or feeling like an entrepreneur. However, becoming an owner-operator brings benefits as well as responsibilities. In this article, we share the considerations and things you need to do to become an owner-operator.

What is an owner-operator?

In the trucking world, being an owner-operator means having a business and working for yourself. While you get to keep all the profits, you also need to take care of other tasks such as signing contracts, creating meaningful relationships with customers, working with trucking companies, and being a temporary member of their team. Track owner-operators have their own or leased vehicles and take care of maintenance, insurance, and other costs related to the business operations. While you carry all the costs, you also have the freedom to choose the jobs and only work with clients you have signed a contract with. You can decline or accept jobs depending on your skills and preferences. We have two categories. A lease purchase owner-operator is leasing their vehicle. On the other hand, a freight agent manages other drivers.

Aspect	Description
Initial Investment	High initial costs for purchasing or leasing a truck, insurance, and permits.
Earnings Potential	Potential for higher earnings compared to company drivers; varies by contracts.
Flexibility	Greater control over routes and schedules; ability to choose loads.
Responsibilities	Includes maintenance, fuel management, finding loads, and handling finances.
Skills Required	Business management, logistics, mechanical knowledge, and driving expertise.
Challenges	High operational costs, market volatility, long hours, and regulatory compliance.
Opportunities for Growth	Potential to expand into owning a fleet or specialized transport services.
Work-Life Balance	Can be demanding with extended periods away from home; flexible scheduling is a benefit.
Regulatory Requirements	Must comply with federal and state regulations, including obtaining a CDL.
Networking	Essential to build relationships with shippers, brokers, and other opera

Requirements for an Owner Operator

If you wish to operate independently, you need to meet the requirements. We also share the legal requirements for everyone who wants to enter this business. 

USDOT Number 

Most states require commercial vehicles to have this number. It is essential for all the companies that travel through the states, transport passengers, transport hazardous materials, or need a safety permit. The registration process includes visiting the website of the Unified Registration System, which costs $300. An MC number is required to transport regulated commodities. If you want to learn more about the requirements specific to your case, visit the Federal Motor Carrier Safety Administration site. Usually, the owner-operators need an MC number and USDOT. If they are working for hire, transport passengers across states, transport federally regulated freight across states. Also, remember that the fee isn’t refundable, and you can get your number within a month.

Heavy Vehicle Use Tax

The Heavy Vehicle Use Tax (HVUT) applies to all operators using a heavy vehicle for their operations. This tax is paid annually and is applied to vehicles weighing more than 55,000 pounds, referring to the gross weight of unloaded and fully equipped vehicles. Additionally, the owner-operator must complete IRS Form 2290 to operate a heavy vehicle.

Intrastate Licensing Through State Driver Licensing Agency

You need this licensing to use your commercial motor vehicle across the states. You also need this if the cargo originates from or goes to another country.

How to become an owner operator?

Make a decision

Decide whether being an owner-operator is the right for you. Don’t forget to count on the cons, such as dedicating time and effort to your business. Yes, we understand that becoming an owner-operator has crossed your mind at a certain point in your career. But do you have the time and can commit to growing and maintaining a business? Truck drivers already spend a lot of time away from home. As an owner-operator, you must dedicate even more time to your business. Truck drivers only cover the responsibilities within their role. However, owner-operators are also managers. 

Get your licenses 

If you already don’t have it, you should get your commercial driver’s license. Keep in mind it requires more effort than the standard license. If you work with special cargo, you might need additional licensing. 

Invest in your owner-operator business.

Being a business owner isn’t easy. You must cover taxes, vehicle buying or leasing, licenses, registration, maintenance, and insurance. Also, count in the weight taxes. There are a lot of costs associated with being an owner-operator. You shouldn’t forget truck maintenance, leases, loans, and insurance. At the same time, you need to pay your living expenses. And yes, being your boss means you will handle all the financial responsibilities yourself. 

Get a truck

Buying a new truck sounds exciting and marks the start of a new journey, but it can also be a challenging move. Taking a loan or investing your savings can sound scary, but it is very important to do some planning first. Decide according to the freight you plan to transport and your business needs.

Decide what type of owner-operator to become

Do you want to be your own boss or lease your vehicle to another company? These are essential questions when deciding what owner-operator type to become. Most owner-operators lease their vehicles to a carrier. You can easily find work, and it covers some of the expenses. This is also helpful if you are new to the industry and want to learn more about the operations. However, operating independently is what makes more money. But don’t forget that you must commit some resources to find loads to haul. 

Obtain insurance

The type of insurance you get depends on whether you operate solo or lease to a company. If you choose to lease, the insurance coverage is limited. You must get comprehensive insurance covering non-trucking liability, physical damage, truck cargo, and lease gaps.

Non-trucking liability insurance protects drivers when they aren’t performing duties for the company. Physical damage collision coverage covers vehicle damage in a collision. Truck cargo coverage protects cargo in case of theft or damage.