17 Steps to Successfully Start your Owner Operator Trucking Business

Mar 10

Are you interested in becoming an Owner Operator truck driver? Getting your own Carrier Authority is a huge opportunity to become independent & make more money, but where do I start? Putting all the research & steps together can feel overwhelming, but following this step by step should make it easier.

What exactly is an Owner Operator?

An Owner Operator is an independent Trucking Business owner. Being an Owner Operator gives you the freedom of becoming your own boss. You can control when and where you work & how much money you make, you can even hire additional drivers, and get additional trucks.

Owner Operator Salary

The best part about owner operators is they can control how much money they make. The average Owner Operators truck driver salary is about $221,000, but you are capable of making more. This can change depending on many things such as, what you choose to haul, what lanes you drive, and more.

Before you start..

Many first time business owners make mistakes while getting their business started. To ensure your business gets up and running smoothly you need to create a step by step plan. Start by evaluating your situation such as, your finances, your lifestyle and your future.

How do I start as an Owner Operator?

1. Start by getting your Commercial Drivers license.

In order to drive a Commercial Motor Vehicle you have to get a Commercial Drivers License. To get this license you need to pass a DOT physical, complete knowledge & driving tests and specify what type of equipment you are going to be using.

2. Invest in a truck and trailer

After getting your license you are going to want to invest in some Equipment . Make sure you're positive about what you plan on hauling when purchasing your equipment because the type of equipment decides what you will be able to haul. Many people wonder if it is worth buying your own semi truck, it definitely is. Your equipment is a crucial investment.

3. Research & Apply for the Proper Authority.

Having Carrier authority means that you have Government permissions to Haul Freight as your own Trucking business. Types of authority vary depending on what you would like to do, such as, what type of cargo you plan on hauling, where to, and more. Now you're going to need to figure out what type of authority you need for your business. You can learn more on the FMCSA website. Completing this can have some application fees, but you will need all of your truck's information such as the VIN Number, Truck make, year, weight & license plate number.

4. Decide on a Business Name

Depending on the state you live in, getting your business name squared away can vary. Usually you can do this through the secretary of state but you can visit your state's official website and cooperate under the appropriate guidelines.

5. Get Approved beforehand for Primary Liability and Cargo Insurance

This step is very important because it can save you time & resources to make sure you're eligible for insurance before your business is up and rolling. You're going to want to apply for the proper insurances such as cargo insurance. This will vary depending on your own business details.

6. Choose a Tax classification/ Business entity & get your EIN umber

Research different business entity options such as LLCs, Corporations or Sole Proprietorships and more. Find the option that fits you the best & make your move. To file your taxes for your business you will need an EIN Number which you can find on the IRS website. To learn more about Filing your taxes as an owner operator visit the Truckstop website.

7. Getting an MC & DOT number

Depending on the details of your business you may need both an MC Number & a DOT Number. Head to the FMCSA website to research & receive your MC Number. To receive your USDOT you can visit the portal & sign up for it.

8. Apply for a Unified Carrier Registration

Now that you have successfully received the numbers you need, you are going to apply for a Unified Carrier registration. UCR verifies your insurance coverage in all the states you're operating in. Apply for your permit.

9. California Drivers

If your home state is California you have to register to get a CA Number. To see additional guidelines for your home state visit your states legislature website.

10. Heavy Vehicle Usage Tax

Before you register for an International Registration Plan you need to pay for HVUT. The Heavy Vehicle Usage Tax is an annual tax that is needed for all heavy vehicles that use public highways. Form 2290 talks in detail about this & after you've done research you need to fill out the OOIDA sheet 7 then Agree to the IRP.

11. Intrastate Licensing

If you plan on using your truck to…

Transport Commerce within only one state.
You can go through the State Driver Licensing Agency to check with them to find out what requirements need to be displayed.

12. Interstate Licensing

If your going to use your Commercial License to…

Transport Commerce across State lines ( including leaving the country)
Transport commerce from one point to another within a states boundaries but the ultimate destination of the cargo is outside of the state.

13. Set up an International Tax & Fuel Account

Now that you've agreed to the IRP you need to set up an International Tax & Fuel Account. This agreement is between all 48 states & Canada that simplifies fuel tax collection. It means you can travel throughout the states & each state has a share of revenue. When you get your IFTA you just have to give one fuel tax return from your base jurisdiction. Set up your account through your base jurisdiction.

14. Drug & Alcohol testing

As a truck driver you are required to have a negative drug test in order to drive trucks & even hire drivers. You need to enroll in a Testing program.

15. New Entrant Safety Assurance Program

Within your first Year and a Half of doing business, you will get a mandatory audit to prove that you're following the proper regulations. To be prepared you need to start record keeping.

16. Additional Permits

There are some jurisdictions like Orgeon and New Mexico, to name a few that require extra permits to drive on their roads. Even to cross their states, you will need the permit. If you down want to file a permit with their state you can get per trip permits which allow you to drive there temporarily. This varies on where you are going to move the freight & if you're going to be moving military freight, government or international loads.

17. Find loads.

Congratulations! now that your business is up and running, its time to book your first load. You may be wondering, how do owner-operators find loads? There are websites designed to help you find loads, these are called load boards. On a load board you can find loads that are perfect for you. But not all load boards are the same make sure you do your research and find a good load board.