Becoming an Owner Operator

There are definitely some perks and benefits to becoming an owner operator. You can make more money in less time OTR. But you won't enjoy being an owner operator unless you know what you're getting into and how to play the trucking game.

Let me ask you... would you just lease on to a trucking company, or get your own authority? Don't know the answer? That's cool. If you have no idea what I'm talking about, you're definitely not ready yet! lol.

(But you're in the right place to learn enough about becoming an owner operator to figure out a game plan for your next move.)

Becoming an owner operator can be the thing that takes your trucking career from ok to awesome. Or it can make it worse. I'll break it down so it makes sense to you.

Becoming an Owner OperatorBecoming an owner operator can be just the trick that takes your trucking career from ok to awesome. Or it can make it worse. I'll make it make sense to you.

Of Interest to Owner Ops

You'll learn the difference, plus other terms and scenarios to consider before becoming an owner operator, lease operator, or independent contractor — or before buying a truck. The term "owner operator" gets used pretty loosely out here. You'll see what I mean.

Being an owner operator is not a job or a hobby, it's a business. It requires certain skills and a certain mindset. I recommend driving for a trucking company for a year before becoming an owner operator, and I'll explain why.

If the information here helps you or you think it can help others like it and remember..... Sharing is Caring. 

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What is Required to Be an O/O


  • Right mindset - About the equipment and operating the business
  • A plan - Goals and the steps leading to achieve them
  • Discipline - You need to do what is required when it's required
  • Proper Equipment - Based on what you plan on hauling and your goals
  • Capital - A business term that means enough money to operate 


I explain these things in more detail later.  If they mean nothing to you read this entire page.

Right Mindset

It's a business. You're part of a team with brokers, mechanics, shippers, and receivers. How you communicate affects the relationship, and that can determine whether you get chosen over the next guy.

Just because it's your truck and your company doesn't mean you can treat people badly — it will work against you.

It's a business. You need to plan for breakdowns and fixed expenses. You need to keep organized paperwork, records, bookkeeping, and information.

It's a business. You have to think critically about whether you should take a certain load, or head in a certain direction, or pass.

Have a Plan

Have a business plan in place for how your will stay in business.  How much will you run each month?  What is the target rate you need to be profitable?  What is the least you will haul for?  How much should you set aside for maintenance?  Build credit for the business so you have it if you need it.

Discipline

There will be loads that make business sense to take, even if you don't feel like it.

There will be times you should work even though you'd rather take time off.

For example: you just had a breakdown that ate into your cash reserves right before you'd planned to take a few days off, and next month your insurance down payment (or some other known bill) is due. Then a great-paying load comes up. Freight opportunities aren't guaranteed, so if your reserves are low, that load should probably win out over the time off — unless the time off is truly needed.

Same goes for spending money dressing up the truck before you've built a real emergency reserve. Discipline means the reserve comes first.

Proper Equipment

Choose the type of truck you buy based on where you will be running and what you will be hauling and how long you will be out on the road.

You might need a certain amount of horse power, certain size cab to ensure the comfort that will keep you on the road for planned time out.

You might need a certain type of trailer based on what you want haul.  Some brokers won't book you with a trailer over 10 years old.  Others want to have E tracking.   Some require at least 3 straps sometimes 6 or 7.  (You want ratchet straps and not the cheap ones)

Don't worry, if you do the research and have a plan you will then be able to determine what equipment is needed based on that plan.

Capital

Before becoming an owner operator, be sure you have around $20,000 saved up and have established a line of credit with vendors, mechanics, and fuel card companies.

That way, you avoid being in a bind where you can't handle unplanned expenses like breakdowns, late payments, or anything weird that comes up.

Most important thing: don't be like the guys who start spending all their money as soon as it starts coming in. Set aside a maintenance account that you don't touch except for maintenance, and replenish it after every use. As soon as you can, also build a separate $5,000 to $10,000 emergency fund that you don't touch unless it's a true emergency.

Should You Buy a Truck - What is Leasing - Which Truck to Buy

Owner Operators Do You
Need a Good Driver ?

Ex Truckers - Part Timers - Felons - Find Loads Fast and Free

Owner Operators Benefits


  • Paid more in less time
  • More control over the loads you accept*
  • Can work when you want to*
  • Can write off more expenses
  • Can take who you want on the truck with you *

The asterisks means there are a lot of variances depending on how you choose to operate.  If you are leasing on to a company some let you choose from a load board.  Some offer you 3 loads and you choose 1.  Then at some companies you are expected to take the load they give you. 

As far as working when you want to again it depends on the policy of the company you choose to lease to or how hard you need to run to handle fixed expenses like the truck payment and insurance, etc. 

Some have to run 3 weeks to cover those costs some can run 1.

Who can ride on the truck with you again depends on which route you take to become an owner operator and what outfit you partner with.

With your own authority all of these are your choices.  You're the company.

If you're lease on to a company, it's their authority and their rules.

Becoming an owner operator is not all glory. There are things that you should consider before becoming an independent contractor. It takes a higher level of responsibility, attention to detail and good business aptitude.



It is a Business

Many people that fail as an O/O, do so either because they are leased on to or do business with poor quality companies, lack vision, or don't see their operation as a legitimate business. Trucking as an Owner Operator is a real business.

Also, becoming an owner operator doesn't mean all of a sudden it's your world, you call all the shots and no one else matters. You still need to have a positive attitude and realize that everyone is part of a team to get the job done if you want to make money.

If customers don't get good service and on-time freight, they'll choose another carrier. Some drivers contribute to a carrier's poor reputation, then turn around and complain about low freight pay and slow freight. Think about it.

It's a shock to some new O/Os that you're still expected to do things you might not want to do, or go places you don't want to go, at some companies you lease on to.

Something else you might not want to hear: without your own authority, many owner operators don't end up making much more than an experienced company driver once expenses and taxes are paid. The biggest benefit is more freedom, not necessarily more money — unless you're business savvy, conservative, forward-thinking, and working with the right companies, brokers, and load boards.

Having a tax specialist who's familiar with trucking and the owner-operator business is also highly recommended.

Business PaperworkBudget Well and Use a Tax Professional

Owner Operator Trucking Tips and Advice

My advice is drive 1 year company driver first and learn all that you can.

Listen to the words of successful O/Os. This is Casey an owner operator out of North Carolina. He hauls cars and will give more advice about car hauling on the car hauling page but here he will tell you about the mindset an owner operator should have to help him be successful in the trucking industry.



Options For Becoming an Owner Operator

  • Own or buy your truck, but run it under another trucking company's authority instead of your own. This is called being "leased on" to that company — and it's what this page mainly covers.
  • Become a lease operator (a variation of O/O).
  • Get your own authority.
  • Owner operators can either lease on to an established trucking company, or get their own authority and become a motor carrier. It's impossible to say which route is best — it depends on your situation: your contacts, money in the bank, family, equipment, and business sense.

    Getting your own authority means more pay, but also more responsibility. With that route, you are the motor carrier, and you handle or delegate every administrative and regulatory piece of the business yourself. Follow the link above to learn more.

    Owner operators leasing their truck to a carrier are responsible for most of the expenses tied to moving that freight (a few companies cover tolls or other costs). That includes weight tickets, tolls, permits, inspection violations, fuel, maintenance, repairs, parking, lumpers, and more.

    Are you responsible enough to make this O/O venture work? Only you know.

    Leasing your truck on to a carrier has nothing to do with leasing a truck from someone else — it just means you're running your truck under another motor carrier's authority, usually getting your loads from them too. They tend to handle most of the paperwork, including paying you, which is why they keep 10 to 30 percent of what the load pays and pass you the rest. The upside: you don't have to wait on payment from the customer yourself.

    In this scenario, you're buying your truck, not leasing it from that carrier. Buying is the best deal if you can swing it.

    The cheapest way to buy your truck is a loan from a credit union or bank, then buying from a dealership or an individual seller. Some large trucking companies, like Swift and Schneider, sell trucks too.

    Some trucking companies will offer to sell or lease you a truck directly, often through a subsidiary that handles the loan or lease agreement.

    This can be a good option if you have bad credit or limited funds but great work ethic, the discipline to finish the terms, and a game plan for advancing your career. Again, this section is about buying your truck, not leasing one — for leasing, go here.

    If you have poor money management skills, hold off on becoming an owner operator. Save some money, fix your credit, work on your discipline, and do your year as a company driver first to learn the game.

    If you have good credit and the skills mentioned above, compare prices between the dealership and the trucking company. You might find your monthly truck note is cut in half, or better.

Should You Become an Owner Operator?

  • You must have good work ethic
  • You must be disciplined in doing what you need to do
  • Good at money management
  • Have an understanding of general business concepts
  • Understand the freight lanes
  • Have minimum $5,000 on hand preferably $10,000 for repairs or guaranteed line of credit for it.
  • You want good credit so your payments are low

That's a hard question only you can answer, based on what you've learned here, what you already know, and the type of person you are.

I became an O/O after about 7 months of driving. I learned a lot of it the hard way, but I was also blessed to buy a good truck and lease on with a good company. I've met drivers who started out as owner operators too — most of them were retired from another career and had money saved for emergencies.

I don't recommend becoming an owner operator until you've driven a year or so. How ready you are depends on how well you handle business and how fast you pick up on the trucking industry. You need to understand the ins and outs before taking on that kind of responsibility.

It can be pulled off with less experience if you're ambitious and willing to take risks. But there's a lot you won't see coming that I can't teach you in an article — only time on the road will.

Can You Become an Owner Operator with No Experience?

Short answer: yes.

Do I recommend it? No.

But if you've read this entire page and actually follow the advice — setting money aside, having the right attitude and discipline, putting together a business plan — you'll likely be prepared enough to get through (or avoid) most of the pain that comes with having no experience.

Still, consider driving for a year first, unless you have a mentor to guide you along the way. I bought my first truck after about 2 months of trucking. I felt like I'd asked enough questions... it worked out, but wow, lol. Some things only time on the road and a good mentor can prepare you for.

Why I suggest drive company first for a year

  • You need to learn more about freight lanes
  • You need to learn some of the logistics behind trucking
  • You need to be exposed to the predictability
  • You get a chance to experience issues with the truck on company $$$
  • You get a chance to improve your driving skills with company equipment
  • You get to learn trucking overall without the responsibility of ownership

Here's an example of what I mean. After driving a while, you learn it's hard to get a load out of certain parts of Florida at certain times of year — same with California. You learn that freight coming out of those places gets real cheap in the slow season.

If you jump in off the street, you won't know any of that, and it'll cost you. You'll lose money heading to those places at the wrong time, because your expenses stay the same while your profit gets eaten up by low rates or delays waiting on a load.

Meanwhile, you could have run three trips from North Carolina to Chicago in the same amount of time and ended up with more money. You don't walk in the door with that kind of knowledge — you learn it through experience.

Talk to a lot of current owner operators before you make the jump. If possible, talk to one who already leases on to the company you're considering.

Remember, as an owner operator you're the one paying high fuel prices and every other expense tied to driving. Costs have gone up, but the rates haven't always kept pace.

O/Os tend to do best when they find a niche, or companies to work with directly and cut out the broker — especially if you're running on your own authority.

Or by hauling specialized freight, like household goods, heavy haul, or even shrubbery. I've heard hauling bread dough pays pretty well too.

Even leasing on to a specialized hauler can bring in a decent wage — let's get some driver feedback on that one in the comments. But if general freight can pay well, specialized freight usually pays even more, especially when it's a percentage-based rate.

Either way, hauling regular freight often doesn't net much more than an experienced company driver makes by the end of the year — unless every piece of the puzzle is in place: a great company, good equipment, strong rates, decent weather, and the ability to choose where and when you run.

The biggest advantage owner operators have is more control over where they run, and not having to run as hard to make it work (unless there's a new truck payment — then you don't have much room to slow down).

Road Train Flat Bed

How Much Do Owner Operators Make?

People always want to know how much an owner operator makes. There are a lot of variables. It mostly depends on the type of freight they've chosen to haul and how they're paid.

They might get paid a percentage of the freight charge, or paid by the mile. Just like with company drivers, the more specialized the freight, the more it typically pays.

Typically, an owner operator hauling regular freight over the road can expect to gross $100,000 to $150,000.

Remember, that's gross!

At the end of the year, after taxes and all expenses come out (depending on how the operation is set up), the driver usually nets anywhere from $35,000 to $100,000 — or more than $250,000 when hauling specialized freight.

Larry is an O/O with Fedex.

He is always looking for top notch team drivers with a clean record to run East to West and back. He is based out of Dallas. You must have a clean driving and criminal record to drive for this owner operator.

I talked to Larry for long enough to feel confident that he is someone you probably would want to drive for.

A problem he runs into is clowns who don't appreciate the opportunity. It's a shame because finding good people to work for is not easy. For me, I think this is a very serious message to all parents about how important it is to teach good work ethic to your children and make them appreciate opportunities and other things in life. (ok, didn't mean to go into all of that...)

O/O with more tips, advice and insight to add do so below

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Fake loads on the DAT Load board are becoming more and more common. Here are 6 ways you can screen for whether the loads you see are fake. Meaning …

How to Spot Fake Loads on the Loadboard - 6 Clues - Be Careful Not rated yet
Fake loads on the DAT Load board are becoming more and more common. Here are 6 ways you can screen for whether the loads you see are fake. Meaning …

Tips For Getting Better Freight Rates from Load Board Not rated yet
Here are Ways to Get More Money for Hauling Freight you find on the DAT load board. Freight rates are a matter of supply and demand. Too much capacity …

Do It Like Megan the Stallion - Go Independent Not rated yet
Megan the Stallion wanted more money and control over her career so she went independent. However, she did sign a deal with a larger company for distribution. …

Tips and Strategies For Maximizing Earnings as an Owner Operator Truck Driver in 2023 Not rated yet
Being an owner-operator truck driver offers the opportunity for independence, flexibility, and the potential for higher earnings. As we step into 2023, …

Should You Become an Owner Operator in 2023? Not rated yet
NO Way! Ok...now I have your attention lol. I met Floyd today who asked me how was rates right now for owner operators. He was considering it …

Looking to take over Lease on 2017 or newer 18 wheeler Not rated yet
Driver at Epes Transport looking to take over someone's lease on newer truck 2017-19. Less than 2000 a month. $1000 down serious inquiries only. jeanne_alan@att.net …

Negotiating Rates For Your Load With Multiple Stops - Video Not rated yet
When you consider taking truckload of freight with multiple stops, make sure you map where each stop is. Know the distance to first stop and the distance …

Trucking Risk Insurance Specialist Not rated yet
If you are opening a Trucking company make sure you can get Insurance. I get calls all the time from new owners who have started their company and …

Some Maintenance Advice For New Owner Operators Not rated yet
New owner operators might try to put off some work until it is absolutely necessary. Sometimes, it makes sense to be proactive. For example if you …

The articles are interesting Not rated yet
I read your article and i really find it interesting. Thanks for sharing such amazing articles with us

Getting My Truck Ready for First Trip Not rated yet
In this video about life as an owner operator I am preparing my 06 Freightliner Columbia for it's first trip going to Manassas Va. As an owner operator …

When is it time to switch to owner operator? Not rated yet
Before making the leap to becoming an owner operator, make sure you are comfortable with the numbers. Not comfortable. Just comfortable with the numbers. …

Jobs for Owner Operators by NC Logistics Company Not rated yet
Carolina Logistics, a leading transportation company, has owner operator trucking opportunities available now for professional CDL-A drivers! Requirements …

Hiring Quality Drivers Will Be One Of Your Biggest Challenges Not rated yet
When it is time for you to expand your trucking company hiring other drivers will be one of your biggest challenges. Not that you can't find drivers, …

In ATL need an opportunity to drive Not rated yet
Class A CDL Looking for Driver job from own operater or small company with some trucks to give me a chance to show my work ethic. Also to show …

Looking for a Owner Operator in NC for live haul contract Not rated yet
Looking for a owner operator to subcontract with a live haul company that haul chickens in NC contract already working. You will be home every night …

LEASE-PURCHASE PROGRAM for O/O Not rated yet
Be your own boss with NO money down or credit check. REEFER. 2 year OTR experience/ A CDL/No major felonies/max. 3 moving violations in 3 years. Long …

Now Hiring Owner Operators Not rated yet
ATTENTION: 6 Owner Operator Spots Open. Sign On and Receive Great Incentives. RDL Logistics (MC# 255999) offering New Owner Operators: · New …

Looking for CDL Driver to pull gooseneck trailer with RAM 5500 Not rated yet
Harris and Walton Distributors is a hot-shot carrier company that hauls loads to 48 states. New driver would be driving a 2017 Ram 5500 with a 40-ft BigTex …

Lease Purchase David McBride and Owner Operators Not rated yet
If you've spent anytime in this industry east of the Mississippi and are or were an owner operator you either know or have heard of David McBride. …

Looking to drive for an Owner operator  Not rated yet
I have been driving since 2009. Worked as a company driver until 2014. Did a lease with a company and truck is giving me major problems between the payment …

Don't lease a truck Not rated yet
Don't lease a truck; all you're doing is paying the bills for the trucking company. True owner-operators struggle to make it on $1.50 per mile, so …

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Insurance Agent in PA Not rated yet
Hello if you are in the PA area and is looking to become an Owner operator and obtaining your own Authority. I will help you get DOT # Authority …

Otr experienced driver 22 yrs looking for work  Not rated yet
Experienced driver 22 yrs otr... Mechanically inclined ... Clean record ... Located in the northeast .... Doesn't have too be home much ... Just want 2500to …

I have freight coming out of Farmington NM and Texlin TX Not rated yet
Hey fellas I am a fright broker/agent who cares about the driver. I have some freight coming out of Farmington NM and Texline TX if anyone is interested …

Looking to hire. Riverside, CA 92507 Temp assignment Not rated yet
3PL warehousing company is looking to hire an owner operator to move containers between 2 warehouses in Riverside, CA 92507 This is a 3 month assignment …

Owner Operators team up with my network of carriers Not rated yet
tired of paperwork? keep falling short of cars to haul? we'll fill your truck with a load if you need 3 or more autos to transport. we'll also do all your …

Need Company Drivers and Owner Operators Not rated yet
Dynamic Freight Carriers out of Tyler, TX is in need of Five Company Drivers. We also need Owner Operators. If you have two years of experience of pulling …

Ross Dirigo o/o Not rated yet
Hi, my name is Ross.I am an o/o in houston tx with a day cab and aluminum end dump trailer.work has been so inconsistent that maintaining my own authority …

Will having lost a load in the past keep me from getting insurance Not rated yet
IF I HAD A LOST LOAD BOUT TEN YEARS AGO WILL I BE ABLE TO GET CARGO INSURANCE AGAIN

Jacksonville FL Driver will pull for Owner Operator Not rated yet
If any owner operator is looking for a driver out of Jacksonville, FL, please email me: aysmith761@yahoo.com. Navy veteran

Owner Ops wanted - Carolina National Transportation in Dearborn MI Not rated yet
Owner Operators Wanted Containers/Inter modal Rail Pick Up and Delivery Fully Insured/Bonded Weekly Settlements Plate Program 100% Fuel Surcharge …

Need Owner Operator Teams for seasonal work Not rated yet
Power only from Dec 1, 2014 through Dec 22, 2014. Round trips from Dallas, TX to Los Angeles, CA. Up to 7 round trips. Drop & Hook, no touch freight. …

restart as trucker after driving 2005/6 Not rated yet
after driving for almost 2 years truck I started this year again and I am driving right now already 4 months for Swift. I think about to get a better paid …

Owner Operators Wanted by Florida Trucking Company Not rated yet
Owner Operator's Wanted Hickory Hill Trucking Inc. Hickory Hill Trucking is seeking Qualified Owner Operators, Flatbed, Van, and Reefer 80/20 split …

Illinois Trucking Company Needs Wants Owner Operators - 3000WK Not rated yet
BELLWOOD, IL COMPANY SEEKS EXPERIENCED OTR OWNER OPERATORS. HOME EVERY WEEKEND IF YOU CHOOSE!! HOW DOES THIS SOUND? - 3 hour approval - Send me or …

double eight ball xpress Not rated yet
team o/o looking to lease on to reliable company clean cdl haz-mat yrs.exp.got 2003 pete plez contact michaeldmarean@gmail.com

Thanks - Really Good Info Not rated yet
This is really good info. I plan on getting my own truck next year and lease on to a carrier. I think for me to jump from being a company driver to having …

Want an insurance quote for a big truck with no truck Not rated yet
Is it possible to get a insurance quote without have a truck or a mc # but you know what type of truck you well be getting...I'm just want a quote to put …

OTR Driver needed in Houston Tx area Not rated yet
Houston Owner Operator Seeking A Driver (In Houston,TX) Haul-Away Transport, LLC is a small company that is based out of Houston, Texas and we …

synthetic oil saves owner operators money Not rated yet
If you are interested in the best protection for your engine and drive train and want save money then check out my web site. I offer the best oil and …

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