Types of Truck Owner-Operators [And How to Choose]

Are you ready to buy a truck and operate your own business? 

The good news is that there are multiple paths you can choose to go down as an owner-operator. The bad news is that you might not know which path is the right one to take. Which path will help you succeed? Which will give you the freedom or support you need?

At Anderson Trucking Service (ATS) we have opportunities for owner-operators who want to haul freight for us or run under our authority, so we understand a thing or two about pursuing this career path. We’ll help you understand your options as an owner-operator in the industry so you can make the best decision for yourself.

Your owner-operator options include:

• Owner-operators who sign on with a company to haul their freight
• Owner-operators who have their own authority and find their own freight

Two Types of Owner-Operators

There are multiple pathways you can take to become an owner-operator. Arguably the easiest way to start your journey as an owner-operator is to research lease purchase programs, lease onto a carrier, and eventually purchase the truck. There's a long list of companies that don’t require a down payment (or have a minimal down payment) and no credit check. After the lease ends, you can pay the balloon payment and be on your way.

Once you’ve purchased the truck, you can continue to haul freight for that trucking company or you can sign your truck on with another carrier to haul freight for them. That’s the most supported path to take as an owner-operator. You can also choose to pursue your own authority. 

If you don’t decide to go the lease-purchase route, you can also secure financing on a truck from a bank and pay off the truck loan that way. 

1. Sign Your Truck On with a Trucking Company

Many drivers just getting their start as owner-operators sign on with a trucking company and lease their trucks onto them to haul their freight. This option will give you the most support as an owner-operator. 

The company will find loads for you and offer them to you. You’ll have the option to accept or deny loads, much like a lease driver would. In some cases, the company may let you help choose your loads, but most often you’ll be looking at their internal load board — not external load boards. 

Before you can sign your truck on with a company, your truck will need to meet that company’s truck specifications and it must pass a Department of Transportation (DOT) inspection. Some of the requirements include: 

• Providing paperwork (the title, truck value, cab card, and schedule 1 2290 Form)
• Plating the truck in a certain stay
• Attending orientation
• Going through training
• Following their operating rules
• Using their safety equipment and communication devices

If this is the route you want to go down, be sure you like the company you’re signing on with. You’ll be working with a dispatcher for that company and you’ll be restricted to hauling freight for that company. If you don’t like the freight they haul or the freight lanes they run in, the company may not work out for you. 

When you’re this type of owner-operator, you don’t have as much liability or risk. You’re not running under your own authority, so you aren’t responsible for all of the paperwork that other owner-operators are. 

Not only will you have a dispatcher or planner assisting you, but you also may have access to the company’s fuel and parts discounts and their network of shops. You may have a fleet fuel card to make your fuel purchases. Instead of needing a large cash flow to cover fuel or parts purchases, this money may be subtracted from your settlements.

If you don’t own your trailer, you’ll be considered a “power only” owner-operator, which means that you own your tractor only and you can rent a trailer for a small fee.

Essentially, as this type of owner-operator you’re similar to a lease operator but without the lease payment and term agreement. 

2. Haul Freight Under Your Authority 

When you're under your own authority as an owner-operator, you're entirely independent. You won’t have any support from a trucking company. 

Under your authority, you’ll be running your own company, even if you’re the only driver. In fact, this is how many large trucking companies today got their start (including ATS). 

You can choose to broker your freight, find your own line of customers, or bid on loads from digital load board apps. You won’t have a company backing you or helping you find freight. However, you have the opportunity to make as much money as you want; you’re limited only by yourself. 

While you’ll still need to pass a DOT inspection, you can do what you please with the truck. There are no limits on how old the truck is, you can do your own maintenance, and you can go to whichever shop you prefer. You can choose to have a camera in your truck or you can choose to run without one. 

You’ll not only manage the booking of loads, but you’ll need to manage your day-to-day. That means a lot of paperwork and a lot of details you may not have thought of. There are a lot of boxes you must check off, and if you don’t check them off, you can get yourself in trouble.  

Running under your own authority poses a lot of risks. It isn’t just your truck maintenance costs, insurance (physical damage, bobtail, occupational accident insurance), and fuel that you have to worry about. You’ll need to pay annual fees to maintain your authority and DOT number. 

You’ll need to secure a line of credit if you run into financial trouble (for instance, if you’re slammed with a huge maintenance repair). You’ll need quite the cash flow to cover expensive purchases, such as fuel. You’ll need some type of maintenance or escrow account. You’ll need to pay for everything from plates and permits to tolls. 

You also have a safety score to worry about. When you run under your authority, you’re subjected to DOT audits and you’ll be assigned a safety score. One minor infraction can significantly hurt your safety score and cause you to lose customers. 

With great risk comes great reward. The sky is really the limit when you have your own authority. You may even decide to hire drivers to work alongside you. 

Start Your Owner-Operator Journey Today

When considering which type of owner-operator to be, think about how much support you’d like. When you contract with a carrier, you’ll have tons of support. If you’d, however, like to run completely on your own and maybe even one day build your own fleet of drivers, secure your own authority and become a true owner-operator.

At ATS, you can work with us as an owner-operator by signing on with us to haul our freight.

If you’re interested in becoming an owner-operator with ATS, fill out an application today to speak with one of our driver consultants. 

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