An owner-operator owns or leases the truck. The question is whose authority the truck runs under: an established carrier's, through a lease agreement, or the owner-operator's own.
Leased onto a carrier
- The carrier's authority, insurance filings and broker relationships cover the loads.
- The carrier typically takes a percentage of revenue or charges fees.
- Less paperwork and a faster start, but less control over rates and freight.
Your own authority
- You register with FMCSA, carry your own insurance and handle your own compliance.
- You keep more of each load and choose your brokers and lanes.
- New authorities can face higher insurance costs and some brokers prefer carriers with a longer history.
Questions to answer first
- How much cash do you have for insurance down payments and slow-paying brokers?
- Do you want to find freight yourself, use a dispatcher, or have the carrier provide it?
- How comfortable are you with filings, renewals and records?
Read the lease carefully
Federal leasing rules require a written lease covering compensation, chargebacks and other terms. Read every deduction and escrow clause, and ask an attorney if anything is unclear.
Our truck affordability calculator and cost per mile calculator help you run the numbers either way.
General information, not legal or financial advice.
This article is general information, not legal, tax or regulatory advice. Rules change; confirm current requirements with the responsible agency or a licensed professional.
