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The U.S. trucking industry is a massive network of carriers, shippers, and receivers that ensures the delivery of products all across the country. There are several ways to work as a driver within this industry. One of the most popular (and lucrative) options is becoming an owner-operator. If you’re curious about what it takes to be an owner-operator, you’re in the right place. This blog will walk you through what it is to be an owner-operator and the pros and cons.
Owner Operator Meaning
As the title indicates, an owner-operator is an individual who owns and operates their own truck. This makes them both a business owner and a driver. While some owner-operators choose to run under their own authority, others prefer to lease their services to a larger trucking company, known as being a ‘leased owner-operator.’ In either case, being an owner operator offers independence and a chance at a bigger cut of the profits.
Pros of Being an Owner Operator
- Independence: Owner-operators make their own decisions and are not subject to the demands of an employer. They choose when to work, which loads to take, and which routes to drive. These types of drivers have more control over their work-life schedule than the average company driver.
- Higher Earning Potential: Owner-operators get paid per load, which means that they can influence how much they make by how many loads they take on. If they were working for a trucking company, the company would take part of the earnings from that load.
- Potential for Growth: Owner-operators can choose to expand their company beyond just themself and grow their business. Building your own business allows for self-determined growth, unconstrained by the word of a boss or other trucking company.
- Tax Deductions: While being an owner-operator increases overhead for the individual, they do have the opportunity to deduct business expenses (fuel, insurance, trucks, maintenance, etc) from their taxes. Utilizing tax deductions can reduce an owner-operator’s taxable income.

Cons of Being an Owner Operator
- Liabilities: The increased freedom that comes with being a business owner is accompanied by increased responsibility and higher personal costs. As a trucking owner-operator, you are responsible for all business expenses, licensing obligations, bookkeeping, and legal requirements. Overhead costs such as fuel, insurance, and truck maintenance are taken on by the owner-operator, unlike typical company drivers.
- Income Variability: An owner-operator’s income is determined by the amount and type of loads that the owner takes. Due to fluctuating market conditions (changing fuel prices for example), the amount of loads that an operator can take can vary, thus their income can be inconsistent.
- Long hours: Owner-operator trucking tends to result in working longer hours to ensure their business remains profitable. Managing business operations as well as driving can be time-consuming.
- Increased Risk; The increased income from owning your own business comes with increased risk if the business fails. Owner-operators bear all the risks, such as freight market downturns or truck breakdowns.
You can either start your own trucking business (under your own authority) or lease your truck to an established company. To be a successful owner-operator truck driver, it is crucial to understand the responsibilities that freedom and potential growth come with. The challenges of managing expenses, booking loads, and adapting in the fluctuating freight market are rewarded by the potential for higher earnings and business growth.
Recap
The difference between a typical company driver and an owner-operator is significant. As an owner-operator, you’re not paid by a company directly for every mile you drive or hour you work. Instead, you’re paid by the loads you transport, which gives you more freedom in terms of choosing routes and schedules. However, this also means you’re responsible for expenses like fuel, maintenance, insurance, and truck payments. If you’re contemplating this path, take the time to evaluate your financial situation, work-life balance, and long-term goals. Are you ready to embrace the freedom of being your own boss?
Frequently Asked Questions:
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What is an owner-operator?
An owner-operator is a truck driver who owns their truck and operates independently, either under their own authority or leased to a larger trucking company.
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What are the pros and cons of being an owner-operator?
Pros include independence, higher earning potential, and tax deductions. Cons involve higher costs, fluctuating income, long hours, and increased business risks.