Be Your Own Boss: 14 Steps to Start an Owner-Operator Trucking Business

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There are two types of professional truck drivers on the road: company drivers and owner-operators. A trucking company employs company drivers, while owner-operators run the business themselves.

Both career paths are a great way to earn a living, but there are some key differences. In the US, most truck drivers are commercial drivers, while about 16% are independent owner-operators.

Here’s everything you need to do to become an owner-operator and jumpstart your independent trucking career.

What is an owner-operator in trucking?

In trucking, owner-operators are independent drivers who don’t work for a specific company. 

Instead, they might have multiple regular shipping clients, or they may use tools like the Truckstop Load Board to find regular work and earn a living.

They also typically own or lease their trucks and equipment. Many drive a single rig, but it’s not uncommon for owner-operators to have multiple trucks and employ a few other drivers.

Owner-operator vs. own authority

If you’re currently a company driver considering getting your own authority to run your own business, make sure you know what you’re signing up for. Getting your authority gives you the freedom to make all your own decisions, but it also requires business savvy and all the responsibilities of owning and running a business.

Another option is becoming an owner-operator without getting your authority. In that case, you own your own truck but work independently under a larger carrier’s operating authority. Before you decide, make sure you understand the benefits and challenges that come with both. 

Owner-operator vs. company truck driver

If you’re currently driving for a company but are considering becoming an independent owner-operator, here are the main ways your role would change.

• A company driver uses equipment owned by the company they work for. An owner-operator owns or leases a truck and buys or leases other equipment they need for the job.
• The company dispatcher assigns loads to a company driver. Owner-operators find and choose the freight they will haul, either from the spot market or by leasing with a trucking company. Most owner-operators find their loads on load boards like Truckstop, which makes finding the right loads for you fast and easy.
• A company driver picks up and delivers loads assigned by the company. Owner-operators are responsible for everything related to running a small business, from finding freight to hauling loads to bookkeeping and paperwork and making financial decisions.
• Company drivers are not responsible for paying for fuel, truck maintenance, repairs, or insurance. The employer covers those costs. Owner-operators are responsible for all expenses of owning and running a trucking operation.
• A company driver is paid by the mile and might receive other pay in the form of a raise, bonus pay, or pay for duties that extend beyond driving the truck. As business owners, qwner-operators make money by negotiating rates with brokers, whether on a load-by-load basis or payment terms set by a contract.

14 steps to becoming a successful owner-operator truck driver

Many owner-operators get their start as company drivers before going independent, but that doesn’t mean you can’t start your trucking career as an owner-operator. The driving knowledge and skills you need for each job are essentially the same.

Here are the steps you need to take to become a successful owner-operator.

1. Decide if the owner-operator lifestyle is a good fit for you.

Becoming an owner-operator — and truck driving, in general — is more than a career. It’s a lifestyle.

Over-the-road (OTR) truck drivers may spend weeks on the road away from their families, friends, and homes. That makes it a difficult career choice if you’re a single parent or if you’re caring for an older family member.

As an owner-operator, you also don’t have the built-in resources of working for a large company. Be sure you’re ready to take on the responsibility of driving and running your own business, from invoicing to regulation compliance.

2. Take a look at your finances.

Striking out on your own requires personal investment, which could mean taking on additional debt.

If you have a family who depends on your owner-operator income, build up emergency savings before going on your own. This creates a safety net if you have slow months or it takes a while to get regular loads.

Put all your financial information into a spreadsheet to figure out how much you’ll need to make each month to pay for your expenses. You’ll have to estimate how much you can earn on your routes, so use low estimates to be on the safe side. 

Owner-operators should also be aware of the International Fuel Tax Agreement (IFTA) for filing fuel use and paying taxes accordingly. Make sure you factor these costs in.

3. Create a business plan.

If you’ll be applying for any loans or grants to start your business, you’ll need a business plan. Most business plans include the following components:

• Executive summary
• Company overview
• Marketing plan
• Goals and milestones
• List of staff (if any)
• Financial plan

An executive summary is a short description of what your business does, who the business serves, and where you’re located (your official business mailing address).

A company overview tells a story. Describe why you’re starting your business, where you’ll work, and your long-term vision for your business.

Your marketing plan should include details about how you intend to find business. If you have a website, are active on social media, or belong to any networking groups, add them here. You can also add that you intend to find trucking loads on load boards.

Goals and milestones don’t have to be set in stone, but it’s good to have them. You should also list your staff and develop a financial plan for your business. This should contain detailed numbers on profits and losses you’ve had in the past, but also revenue projections, cost projections, and any investments and debts you’ve acquired to start your business.

4. Get a commercial driver’s license (CDL).

If you don’t have one already, obtaining a commercial driver’s license (CDL) is crucial to becoming an owner-operator truck driver.

It’s not difficult, but it can be a little more involved than getting a regular driver’s license. You’ll need to pass a physical exam, determine your license type (most likely Class A), take a knowledge test, earn your CDL permit, and then take a CDL skills test to be fully licensed.

Once you have your CDL, you can legally drive a heavy commercial motor vehicle as a company driver or owner-operator.

5. Register your business name and choose a business structure.

Per federal regulations, you must form a legitimate business as a legal entity to run your company. To do this, go to your state’s secretary of state website and search the database to see if your business name is available. You’ll then need to decide on a business structure.

If you’re on your own, you’ll likely be creating a sole proprietorship or a limited liability company (LLC). However, there are other business structures to consider. You can get more information on forming a business from the Small Business Association.

As a sole proprietor, you can independently make every business decision without input from a partner or board of directors. The downside is that all the business’s financial and legal aspects are tied to you, so your personal assets could come into play if your business faces a lawsuit or you have issues with your debt.

With an LLC, your personal assets at protected from any liabilities or debts associated with your business. 

Once you’ve decided on a business structure, complete the application and pay the registration fee to submit it.

6. File for your USDOT number.

Your U.S. Department of Transportation (USDOT) number is assigned to you by the FMCSA. It identifies you as a carrier operating in interstate commerce. You can apply for your USDOT number through the FMCSA website.

Note: The FMCSA changed form requirements in 2024, and processing can take up to 30 days.

7. Get your trucking authority.

Your motor carrier (MC) number identifies you as a carrier “for-hire” who transports goods contract-by-contract. Unlike a driver employed by a company, you’ll operate on your own and be your own boss. This is what truckers refer to when they talk about “trucking authority” or “operating authority.”

You can usually apply for your MC number through the FMCSA website. Or, let Truckstop do the heavy lifting. Sign up for our Carrier Package to get your trucking authority and two months free of Truckstop Load Board Pro.

8. Decide whether to buy or lease a truck.

Buying your own truck can require a hefty down payment. If you can afford a down payment and get a loan for a new truck or a used truck, buying may be a good choice.

Leasing a vehicle is cheaper, but then you don’t own it, so you won’t build up any equity and may end up paying more in the long run.

To figure out which is best, answer these questions:

• How long will I keep the vehicle?
• Do the financing options work for my budget?
• Are there any tax implications or benefits?

9. Purchase truck insurance and liability coverage.

The FMCSA requires owner-operators with their own authority to have liability coverage. FMCSA also requires general freight carriers to have at least $750,000 in coverage, but most shippers and freight brokers require $1 million in coverage.

You can also purchase other insurance types to protect your business, including cargo insurance, personal property insurance, roadside breakdown coverage, and more. Truck cargo coverage is essential for protecting the goods being hauled in the event of damage or theft.

10. Use load boards to find freight and negotiate load rates.

Once you’ve formed your business and obtained your authority, you can start browsing load boards. The Truckstop Load Board makes it easy to negotiate load rates, find routes, and monitor paperwork, so you can keep your owner-operator business running smoothly. Truckstop also provides a complete set of tools for managing your owner-operator business.

11. Get an electronic logging device (ELD).

To comply with regulations, you’ll need to buy an FMCSA-compliant ELD. Create accounts as a driver and as a fleet manager since you technically fill both roles.

You must physically or electronically connect your ELD to your truck to record hours of service information.

12. Increase cash flow with invoice factoring.

Factoring helps you increase cash flow by getting your invoices paid quickly. Owner-operators often build relationships with trucking companies to secure regular work and improve cash flow.

With Truckstop Factoring, you can follow this plan:

• Haul a load.
• Submit your invoice to Truckstop.
• Get paid faster.
• Your broker pays Truckstop in 15-30+ days.

Instead of waiting a month for an invoice to process, you get paid almost immediately.

13. Follow the golden profit ratio.

To know if your owner-operator business is performing well, you need to know that it’s profitable. That means knowing your profit margin.

First, calculate your gross profit. This is the difference between your revenue and operating expenses.

For example: 

• $200 revenue – $150 expenses = $50 gross profit.
• Divide that by your total revenue, and you’ll have your profit margin, which you can represent as a percentage:
  • $50/$200 = 0.25 or 25%
• So, your ratio is 25%.

There isn’t a set “golden” ratio in this equation, but most experts say you have a healthy business if it’s between 10% and 20%.

14. Create a system for managing finances.

Finally, you’ll need an easy way to track your finances, both for tax purposes and to make sure the business runs smoothly. You can manage this with a simple spreadsheet, but software programs like Truckstop can also help you do this.

Mobilize your operations with Truckstop Go

Mobile apps help you access whatever you need when you’re on the road. And when it comes to finding the best loads, rates, and lanes, Truckstop Go has you covered. Download Truckstop Go to get started.