{"id":18425,"date":"2023-08-07T05:32:49","date_gmt":"2023-08-07T12:32:49","guid":{"rendered":"https:\/\/www.dat.com\/resources\/?post_type=resources&p=18425"},"modified":"2025-09-23T10:40:37","modified_gmt":"2025-09-23T17:40:37","slug":"how-to-become-an-owner-operator","status":"publish","type":"post","link":"https:\/\/www.dat.com\/resources\/how-to-become-an-owner-operator","title":{"rendered":"How to Become an Owner-operator"},"content":{"rendered":"

If you\u2019re interested in a career on the road, becoming an owner-operator can have major benefits. It offers the freedom to manage your own load matches and independence in your trucking career. But operating your vehicle independently also comes with plenty of responsibilities \u2014 from taking care of taxes to dispatching to meeting registration deadlines and more. However, as long as you stay on top of your backend responsibilities, you can have a stable career as an owner-operator that keeps growing for years to come. <\/span><\/p>\n

Let\u2019s take a look at what makes an owner-operator \u2014 and what you should expect if you\u2019re considering becoming one. There are plenty of costs and benefits associated with any new career, and it\u2019s important to understand what steps you\u2019ll need to take for success before you get started.<\/span><\/p>\n

What is an owner-operator?<\/b><\/h3>\n

The term \u201cowner-operator\u201d doesn\u2019t just refer to truckers \u2014 there are all kinds of owner-operators across many different industries. The common thread is that all types of owner-operators work on both the back end and the front end of a business. That means that, as an owner-operator, you\u2019ll be running the business itself, as well as focusing on the actual daily performance of your business\u2019s services.
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In terms of trucking, an owner-operator is someone who does just that: owns and operates. The daily operations of trucking \u2014 transporting goods across the country to carry on the supply chain \u2014 are still the central part of your career. But being an owner-operator can either mean running your trucking business independently, or it can mean becoming contracted or \u201cleased on\u201d to a larger carrier business. Both have their advantages and disadvantages, so it\u2019s all about finding which path is right for you.<\/span><\/p>\n

Independent vs. leased-on owner-operators<\/h3>\n

Running your own business as an independent owner-operator means you\u2019ll need to lease or own your own vehicle, as well as balance your budget, keep track of registration requirements and taxes, and make sure you\u2019re always insured. There are lots of components to a successful trucking operation, and owner-operators need to stay on top of all of them.<\/p>\n

As with any small business, you\u2019ll need to keep track of lots of backend responsibilities to keep your business running smoothly. But when you own your own business, you also have more control over your schedule and your income. You can find and dispatch your own loads for the best matches and you can build a sustainable business of your own. In other words, you are your own boss. <\/span><\/p>\n

On the other hand, being a leased-on owner-operator means that you own your own truck but are contracted with a larger <\/span>carrier<\/span><\/a>, hauling loads under that carrier’s authority. Most of the time, leased-on owner-operators don’t have their own authority and wouldn’t be eligible to use the load board for interstate shipments (but could maybe use it for intrastate).<\/span><\/p>\n

While independent owner-operators source their own loads, leased-on drivers have an arrangement with carriers to deliver the loads assigned to them and share revenue with the carrier company. This means that your profit margins might be lower as a leased-on driver, but the benefits of being leased-on provide a stronger safety net than going independent.<\/span><\/p>\n

So owner-operators can either take the high-risk, high-reward path of going independent, or opt for consistency and security by becoming leased-on.<\/span><\/p>\n

How to become an owner-operator<\/h3>\n

When you\u2019re first starting a trucking company, owner-operator requirements can get a little hectic. Once you\u2019ve made sense of all the registration, insurance, and financial requirements, though, you\u2019ll be well on your way to creating a strong foundation for your business.<\/span><\/p>\n

First things first, you\u2019ll need a commercial driver\u2019s license (CDL)<\/strong>. If you\u2019ve never driven a commercial vehicle before, you\u2019ll need to develop the skills necessary to drive a truck for interstate transportation. CDL certification is the most basic form of commercial driving registration, and you can get training at a CDL school or with a registered CDL training program via a larger trucking company.<\/p>\n

After you\u2019ve gotten your license, you\u2019ll need to get registered. We\u2019ll discuss <\/span>registration<\/b> a little later in the article. For now, all you need to know is that every owner-operator needs to get <\/span>authority<\/span><\/a> from federal and state government agencies before they can start their business.<\/span><\/p>\n

You may also need <\/span>insurance<\/b> to become an owner-operator. Leased-on owner-operators are typically able to operate under the insurance of the carrier they\u2019re contracted with, but independent owner-operators will need to get their own. There are several types of trucking insurance, each with a unique goal. The most common type of insurance is primary liability insurance, which offers anywhere from $700,000 to over a million dollars of coverage. In addition to liability insurance, you will also invest in separate insurance for your cargo. <\/span>Cargo insurance<\/span><\/a> can be paid at a yearly rate or at a per-load rate.<\/span><\/p>\n

For quality trucking insurance you can trust, check out DAT\u2019s insurance partners, like <\/span>Loadsure<\/span><\/a>, which lets you access per-load insurance that\u2019s flexible based on how much your loads are worth. With per-load cargo insurance, you can avoid getting overcharged by paying a yearly rate for cargo<\/span> insurance. Plus, Loadsure lets you get up to $2 million in liability insurance.<\/span><\/p>\n

How much do owner-operators make?<\/h3>\n

So, how much exactly can an owner-operator expect to make? The answer is: it varies. Of course, that probably isn\u2019t the answer you wanted to hear. But, like any small business, the amount you make is based on the strength of your business model, your personal drive, and the strength of the tools you use. When you\u2019re finding great freight matches, and you\u2019re not taking losses due to underinsurance or expired licenses, it\u2019s easier to stay on top of your budget than it would be otherwise.
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Another reason that an owner-operator trucking salary is variable is because you\u2019ll need to invest a lot upfront. Once you decide to <\/span>become an owner-operator<\/span><\/a>, you\u2019re likely going to be making a multi-year commitment if you want to see a real profit and growth. That\u2019s because owner-operators generally don\u2019t make as much in their first year as they do later on in their careers. On top of that, it\u2019s important to remember that you\u2019ll have some additional costs you wouldn\u2019t encounter if working for another business, like needing to buy your own health insurance plan if you elect to get health insurance.<\/span><\/p>\n

In the end, the gross salary for owner-operators usually hovers around $200,000 \u2014 but this isn\u2019t actually the size of the check you\u2019ll take home. An effective owner-operator business will usually pocket a net salary of around $50,000 a year after all their costs are taken into account. This figure can range anywhere from a few thousand dollars lower to tens of thousands higher. It all depends on the type of freight you can find, the type of budget you\u2019re maintaining, and the operating costs of your business.<\/p>\n

With the registration fees, insurance payments, and the cost of leasing or even buying a truck, your first year might not yield the financial rewards you were expecting. But remember, you\u2019re making an investment for the future. Later on, owner-operators can find trucking to be a profitable and rewarding career path.<\/p>\n

What permits are needed for an owner-operator?<\/h3>\n

Once you\u2019ve gotten your CDL, it\u2019s time to get registered. There are plenty of registration requirements for freight carriers, and you\u2019ll need to stay on top of annual renewal guidelines in order to avoid non-compliance fines. In addition to state-specific requirements, all commercial carriers must have these basic federal requirements:<\/span><\/p>\n