How to Become an Owner-Operator Truck Driver in 2024

Are you planning to make changes? With owner operator jobs, you can have your own business within the trucking industry. 

An owner-operator is a person who performs business management and drives the truck. He is the owner of the business and operates the vehicle.

This is the perfect choice if you want to become a truck driver and operate independently. 

The owner-operator has many responsibilities, including finding clients, maintaining the relationship, driving, loading, and unloading, planning routes, maintaining the equipment, covering insurance, and maintaining financial records. The owner-operator takes care of everything. This means they can decide which gigs they want to take and which they want to pass. 

Whether you don't like a specific type of work or don't like to work for a particular industry, you can always avoid those gigs and specialize in the job you want. Also, owner-operators set their own rates, giving them freedom. This means that they can earn more than they would if they were an employee. A freight manager can also be part of this category as someone who manages the truck's operations. If you want to take a break from driving and have good management skills, you can also go for this role. 

The difference between a company truck driver and an owner-operator

Company truck drivers are employed at a certain business and take orders from their manager. On the other hand, owner-operators can decide which gigs they want to take and refuse the ones that they don't like. Also, the crucial difference is that the owner-operator needs to invest in their business. They should buy or lease trucks and other equipment and cover the overhead costs. 

Also, a company truck driver uses the equipment their employer provides and doesn't have additional costs. 

How to Become a owner-operator 

If you wish to become an owner-operator, you must be ready to invest. Understanding the costs. To become an owner-operator, you need to know the startup costs. First, you have the legal fees and licenses, which can cost anywhere between $100 to $1500. Next, you need to remember that maintaining trucks isn't cheap. 

The average annual cost would be $15,000. You will also need to pay the monthly loan or lease for the equipment. Add in the insurance, your living expenses, and marketing to get a clear idea of the initial investment. 

Create a business plan

As an owner-operator, you must create a defined business plan outlining your actions. You have the choice to operate your trucking business under your own authority or lease your trucks to another company. If you work under your own authority, you will make all the decisions and earn more. 

However, don't forget that you need to cover the other responsibilities, such as establishing relationships and marketing. If you want to lease your vehicle to a carrier, you will have an agent who provides you with work while also covering a portion of the expenses. This allows you to be self-employed and have a certain degree of freedom, but also don't forget that they will charge a fee. 

Form a business entity

In order for an owner-operator to work, they need to establish a business entity. For this purpose, work with an accountant to help you decide which business structure is ideal for your business.

Obtain a commercial driver's license

If you haven't worked in the trucking industry, you need to obtain a commercial driver's license or CDL. Authorities provide step-by-step instructions on how to get yours but keep in mind that the requirements depend on the category of vehicle and freight.

Federal requirements

Potential owner-operators need to familiarize themselves with the federal requirements. You need to cover a heavy vehicle use tax if you operate trucks over 55,000 pounds. Also, there is an international fuel tax agreement where you need to report fuel use and pay taxes. This depends on different states, so you need to check. Owner-operators might need to establish their USDOT number and MC number. This goes for truck drivers who transport hazardous material, drive interstate, or carry passengers.