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How to Start as an Owner-Operator
If you’re in the trucking business and want to become your own boss, you’ve probably looked into becoming an owner-operator. Here’s how to become an owner-operator in the trucking industry… and how to unlock some serious savings as you do so.
What is an Owner-Operator?
An owner-operator is a self-employed trucker that is also a business owner who manages their own fleet of semi-trucks.
A lease-purchase owner-operator is a truck driver who leases or rents their vehicles from another commercial vehicle company. The trucker may or may not outright purchase their vehicle down the line. The primary benefits to this strategy are flexibility and that it requires less capital to begin. The largest drawbacks include limited control, potentially restrictive lease agreements, and often still having to cover maintenance costs for leased trucks.
An owner-operator with sole proprietorship owns and manages all motor vehicles in their own truck fleet; their fleet counts as both personal property and business assets. This type of business is relatively easy to start up and allows people full control of their own businesses. The drawbacks include significant personal liability, scalability obstacles, and higher upfront costs compared to a lease-purchase alternative.
Becoming an Owner-Operator
1. Creating a Business Plan
A business plan will outline your business goals, services, and more. It may be necessary to have one if you want to go to others for investment. A business plan can also help you better understand projected costs and whether this venture is one that is feasible for you.
A business plan typically includes an executive summary, company description and structure, market analysis and strategies, services, financial projections and, if pitching to investors, a request for funding. The idea is to make the business seem feasible, competitive, and worthy of investment.
Once a business plan is established, you can start getting appropriate licenses, registrations, and more.
2. What You’ll Need
To start your own trucking company in the United States, you will typically need at least the following items:
- Semi truck
- Valid Class A commercial driver’s license (CDL)
- Appropriate endorsements for your intended freight
- USDOT number/business registration with the U.S. Department of Transportation (DOT)
- Appropriate truck insurance, which can include commercial auto liability insurance, general liability insurance, and cargo insurance
- Compliance with all federal and state laws and regulations
- Unified Carrier Registration (UCR)
- BOC-3 processing agent to file BOC-3 forms with the Federal Motor Carrier Safety Administration (FMCSA)
- Operating authority/docket numbers
Most drivers will also need an electronic logging device (ELD) that is compliant with FMCSA standards, according to the official FMCSA website. Additional licensing and insurance might also be necessary for trucks that haul hazardous materials.
Previously, drivers needed Motor Carrier numbers (MC numbers) as well, but the industry is phasing them out as of 2025.
3. Getting Work
Once a driver has these items, it’s time to find work. Owner-operators may seek contracts with independent companies or find loads on load boards.
4. Filing Taxes
U.S. law requires that owner-operators, as self-employed individuals, file taxes and International Fuel Tax Agreement (IFTA) reporting every quarter.
Specific taxes that owner-operators may be subject to include:
- Self-employment tax
- Federal income tax
- Heavy Vehicle Use Tax (HVUT)
- Federal Highway Use Tax (FHUT)
Owner-Operator FAQs
How long does it take to become an owner-operator?
The timeline for becoming an owner-operator depends on several factors, including prior experience, whether the person already has the right CDL, and how long paperwork takes to process. For some people, this process may take a few weeks or months while others may need years.
Can you become an owner-operator with no experience?
Someone can become an owner-operator without any prior commercial truck driving experience. However, making the transition from a company driver to a successful owner-operator truck driver is much easier and quicker than starting without any experience.
How can owner-operators save on fuel costs?
The easiest way to save money on fuel costs as an owner-operator is to partner with Motor Transport Alliance. Our fuel card is perfect for small businesses and startups, unlocking benefits like enhanced fraud protection, fuel discounts, maintenance and tire discounts, and more.
Best of all, we require minimal paperwork, no annual fees, and no contracts to get started.