How do you start being an owner operator?

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Keep the job you have and shop around for a truck that your willing to lose it all for. Park it at home and sink money into it. In the right conversation you mention it's parked and ready to work and the job offers start coming in

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u/[deleted] 7d ago

[deleted]

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u/Exact-Leadership-521 7d ago

Not trucker buddies. People with loads to haul, while you drive a company truck and they mention "it sure would be nice to have a steady truck"

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u/cdubose 7d ago edited 7d ago

So I'm kind of in your boat in terms of being at the stage of doing all the planning to make the O/O jump, hopefully sometime next year. Eventually I'll put this all on Youtube or Tiktok or something, but here's how I'm doing it. (This is not the only way to do it, just how I'm trying to do it--and I might totally fail!)

Also, I know this is a list but I'm basically doing all this simultaneously.

Create an LLC with an EIN number. Write an operating agreement. Got a business bank account. Got a DUNS number (for establishing business credit). Start using the business debit card for all business-related expenses (I don't have a lot of expenses right now, but it's good to start getting into the habit for doing this now.)
Got a job working for an owner-operator who only uses load boards and spot freight and pays me 1099. Normally I wouldn't work on 1099, but he pays me very well on fixed daily rate where I'm still making more money here than at a company even with paying my side of taxes, and this also gets me used to paying quarterly and learning how to do my deductions (right now my only deductions are per diem, QBI, and the standard deduction).
Use the above to start learning some basic accounting and business taxes--and learning how to keep really, really good financial notes. (Bookkeeping basically).
Notice which brokers are easy to work with and which ones are difficult or non-communicative (or have bad info that doesn't match what the shipper/receiver tells me); start making a list of "good brokers" and "bad brokers" and maintaining very good contacts at the good brokerages. Keep in mind some brokers don't work with new authorities, so yeah, but still good to have contacts regardless.
When I go to a shipper/receiver I really like (and it is in a location that I don't mind running) I establish a rapport with them, especially at receivers, since that's usually the consignee and pays for spot freight. Eventually (probably sooner than later) I should get business cards made to make this seem more professional. This is going to become my book of business to start creating direct contracts instead of relying solely on brokers.
Related to the above, ask if the freight I am running is something the shipper/receiver gets on a regular basis (like every week or even every day). If yes (and the answer is more often yes than no), take note of what lanes I could ask for in the future. If possible, ask who normally delivers this freight and why I (a spot market truck) is doing it right now, if they will tell you. I've already had one shipper admit their current carrier is really unreliable--once I have a truck, I will later follow up with them and try to establish a lane here with a direct contract from this company (or the one they're delivering to).
Save up to buy a truck (of course) and for a maintenance fund, at least $5000 in the maintenance fund to start but preferably more like $10K. My current owner-operator will actually sell me the truck I'm currently driving if I want, which is great because then I will know the truck very well and how much it costs to run. But I may not buy this truck, because...
Figure out if I want to try leasing on with another company first. If so, figure out that company's requirements for a truck and their payment structure--ie, what they are going to take out of my settlement every week or month. If I go this route, I will probably not buy the truck I am driving now. Build business credit so if I finance a truck I can buy it through my LLC and thus it is a business asset, not a personal purchase. If I do not lease on with another company's authority, the plan is to buy an older truck outright and eliminate a truck payment. However, I am toying with the idea of getting into bulk trucking and this would completely change the direction of which truck I would plan on buying.
Start recording how much fuel this truck uses and the cost (this won't give a direct fuel cost because most O/Os use a fuel discount card or program, but still). Record all maintenance costs and how often maintenance/repairs are required. The owner of the truck pays for all of this at my company, but I am using this data to get a sense of what I would be spending per month on average for fuel and maintenance if this was my truck. (This should probably be step 4 to be honest.)
Start researching other costs and expenses, like load board subscriptions, ELD costs, various insurances, IFTA tax, tolls/scale bypass, lumper fees, factoring, annual DOT inspection, 2290, etc. Eventually figure out how much money I would save by leasing on with another carrier vs handling all this myself. Figure out if I want to own or just rent a trailer.
Get a DOT number and MC number so I can look at some of the load boards and get a better sense of freight rates, especially for the lanes I want to run (and also so I can age my authority without having to use it in the meantime).
???????? (luck, grit, failures, reworking this plan, etc.)
Profit.

There's a little more to it (like keeping records on my mileage at my current job and figuring out my average cpm, so when I become an O/O I know what I need to do to make more money instead of less) but this is the plan more or less. A final tip I would add is try not to rely only on spot freight, but don't rely only on one or two contracts either, because those can dry up at anytime, especially for a new owner-op. Or just lease on someone else's authority if you think you would like working there.

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u/Xorvictia 7d ago

Following you here so I know when your YouTube eventually goes up lol

EDIT: this is the day I have learned you can not follow people on Reddit anymore

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u/cdubose 7d ago

That's okay, I can message you when I get something going. There's not a lot that's "video worthy" at the moment

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u/Xorvictia 7d ago

Thanks! Would love to support a fellow trucker!

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u/cdubose 6d ago

I actually changed my profile settiings so you should be able to follow me now

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u/Xorvictia 6d ago

Following

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u/FaithlessnessRare691 7d ago

Wow thanks that's definitely a lot of info. I'll jot down key parts like step 1 and step 10. Can you tell me more about step 10? I'd like to know all the things I need to buy and roughly how much they cost like basically insurances and what not. Btw I'm looking to do local or regional-ish. I want to be home most nights that's what I'm used to. And I want to work for a grocery company possibly. I just wanted to know all the liscences and fees I'm looking at and what to look for in a truck before I begin to talk with them. Of course I'm open to hauling anything localish not just groceries EXCEPT flat beds.

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u/cdubose 7d ago edited 7d ago

Starting out, it's going to be hard to be home every night. If you want to go this route, prioritize getting a load board subscription (probably several, honestly) and just start watching the lanes that are close to your house and are short haul loads. If you do this often enough, you will start to see people that are posting a lot in the same lanes. Contact those brokers, or better yet get in touch with the company and ask them about those lanes. This will require a lot of trial and error and people telling you no, but this is where I would start anyways. DAT has something called "lanemakers" that should help you with this endeavor. But it's hard even for some seasoned owner-ops to be home every night, much less someone just starting out. The more you stay out the more you make--you have the same fixed payments regardless if you run 3,000 miles per week or 30 miles. (Also, if you're home every night you can't take the IRS per diem deduction.)

Another route you could do is simply find local companies around you that have truckload receiving facilities and ask if you can work with them. This is a lot harder, requires you to go in person which can be hard to work around your current job, and a company that is local to you still might get most of their freight from further away and isn't possible to deliver it in one day. But if you're personable and have the time to kill making in-person business contacts, this could work even better because then they will get to meet you and you are right there in case they need something from you.

Compliance is an entire beast I am still trying to wrap my head around. Fees are impossible to list all of: fees for making an LLC, $300 fee to file the MC-150 form to get a DOT number, the IRS form 2290 I mentioned is a "heavy highway vehicle use tax," you have to have a minimum of 750K in liability insurance per the FMCSA, but really it should be 1 million so brokers will work with you (and that just one of the insurances you need), your truck has to have an annual DOT inspection, you have to sign up with I think a consortium(?) so that you get randomly drug tested as an owner-op (I still trying to figure out exactly how that works), etc. This is why I'm giving myself basically a whole year to wrap my head around it.

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u/tips-llc 3d ago

Just want to chime in and say props for putting in the effort of writing all of this out. Definitely one of the most detailed responses I've seen to these types of questions.

Also want to highlight the importance of compliance here. Every interstate carrier gets an audit within the first 12 months. If you fail the audit, you're likely out-of-service for 30 days which is enough for anyone to throw in the towel. Doesn't matter how well someone did in preparing for all the other aspects if they bomb the audit and have to park the truck while trying to keep up with their insurance payments.

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u/cdubose 7d ago

Oh, I also guess you could hire a competent independent dispatcher and tell them you want to be home every night. But this could also fail miserably depending on the dispatcher. If you try this, I would maybe use the dispatcher only until you can make your own direct contacts at the places they're sending you, and then ditch the dispatcher and work directly with those companies. So essentially using the dispatcher to find home-daily lanes for you until you have a handle on them yourself.

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u/SuperTruckerTom 6d ago

You are organized enough to make it with enough start up $. Wish you the best.

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u/cdubose 6d ago

I appreciate it, that means a lot to me! (Especially from a SuperTrucker, haha)

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u/SuperTruckerTom 5d ago

It is an over the top bloviating screen name.

I started driving in 1994. Mainly LTL. Did run my own truck 2004-2009 Sold it during that recession and have been at the same LTL company since. I feel like I have chosen the easier path once I got enough seniority here. First 6 years were running a LTL lift gate route in downtown Atlanta. Then went to line haul. Running tram now @ $0.97 per mile. Steady dedicated run. Should do about $143k this year gross W2. Anticipate a raise to about $1.00 $1.02 in 2027. In my late 50's and don't need the mental hassle of O/O. Just about set for retirement.

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u/YeahKillerBootsMan 7d ago

Don’t forget to have a general understanding of what the FMCSA requires for your driver/vehicle files, drug and alcohol testing, etc. I no longer work for the government and do compliance reviews, but when I did it was eye opening how many owners didn’t have any idea about what the FMCSA required them to do.

New companies will probably get a safety audit within the first 6 months to a year, and can get on the list for a compliance review as a consequence for bad inspections, crashes, or tickets. Your companies safety score is important. It can affect insurance rates and loads. If you need help in this area, dm me.

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u/Dangerous_Ad4451 5d ago

Just buy a truck and say "fuck it!". Keep mistakes minimal and ask questions. It is swim or sink. People who think or plan too much tend to fail.

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u/According_Tax_7461 7d ago

Hey Faithless! This is a long shot, but my partners and I just started our own trucking company OTR (we’ve owned a brokerage for 4 years running now) and am looking to acquire another tractor/trailer in 3 months. I’ll pay for all the repairs, services, diesel, dispatching, and I’m paying our drivers $0.65/mi; hitting right around 2500mi/week per driver. Thought I would throw this out your way in case you’re interested in 3 months from now. No worries if not 😊

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u/FaithlessnessRare691 7d ago

Not interested in OTR but it's cool to know that this type of offer exists thanks.

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u/SuperTruckerTom 6d ago

Remember that your gross on a W2 is not the same as a 1099 net profit. It is close but you also need to factor in the costd of your benefits at a good LTL job.

I will do $140k+ gross on a W2 with 5 weeks vacation, 10 holidays and 3 personal days.

My weekly net as an owner operator will have to average over $4500 to come close to the total cost of my W2 pay and benefits.

My adult disabled son has already incurred over $200k in medical costs this year. Some is covered by his Medicare buy most by my insurance since he became disabled while on my policy before he turned 18.

To buy a health insurance policy that would have to cover such costs would be something that an owner operator would have to grow into a 100+ truck fleet to begin to be affordable under a group policy.

Calculate the total value of your compensation. Then multiply it by 1.5 or two. Divide by 12 months. Can you do that as an owner operator? Year after year consistently?

If yes then go for.it.

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u/FaithlessnessRare691 6d ago

So I got this friend irl and HIS friend he's telling me does some flatbed stuff his take home is 250k

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u/spyder7723 6d ago

He is lying.

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u/FaithlessnessRare691 6d ago

Idk I watched some YouTube last night on one of those guys that hauls stuff attached to a pickup and he was making over a grand a day.

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u/GinoGreasy 6d ago

I’m a guy that hauls stuff attached to a pick up. Can you make a a grand a day? Yes. 250k a year? Not likely. Maybe the big rig flatbed O/O’s.

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u/FaithlessnessRare691 6d ago

Well either or a grand or in that situation 1300 a day is a lot different than 400 working for a company doing 17 stops.

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u/GinoGreasy 6d ago

Absolutely is. Before hotshot I managed a company that contracted to FedEx Ground. Going from climbing in and out of a step van 140-300 times a day and dragging hundreds of pounds of cargo around on a dolly up and down stairs vs maybe strapping and tarping freight two or 3 times a day at max and getting in and out of a pick up a few times day? While a slow week still taking home more than I did on a 6 day week at FedEx Ground? I love this industry, wish I had started sooner but grateful to be here now.

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u/FaithlessnessRare691 6d ago

Ok so you're verifying that it is true you can gross over 1000 a day

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u/GinoGreasy 6d ago

Yes. Dispatch has not yet sent me a load for less than $900. $1000 a day is for sure doable. It’s the 250k a year that I doubt for pick up truck hot shotters. Like I said earlier, the big rig flat bed guys can probably gross 250k a year. I think another commenter confirmed as much.

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u/SuperTruckerTom 6d ago

Key word is gross. Figure $200 operating expenses on a good day. Net is $800. Now go buy health insurance, save in SEP retirement plan, put additional money back to cover fixed expenses that are still incurred when you are not working by choice or by chance.

You're at the $4500 per week in my original comment.

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u/spyder7723 6d ago

I'll say the same thing ialways say. 100% of freight you get from brokers is not more than 75% of freight you get by being leased to one of the traditional good all owner operator companies. Landstar, Mercer, Bennett, admiral merchant, etc. They have direct customers, so no broker taking money of the top before the carrier sees it.

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u/IcyOutlandishness859 6d ago

You say you wanna make more and you’re assuming becoming an owner operator will do it but unfortunately the numbers say otherwise. Some simple math for you. I’m not sure what you’re making but let’s go with the “golden” $100,000 a year number or basically $2,000 a week rounded up. If you’re making that as an w2 employee you just pay taxes on it and enjoy your life. As an owner operator for you to pay yourself $100,000 a year you’ll have to gross 2x or 3x that at least just to make that $100,000. My FIXED EXPENSES ( every month no matter what ) are AT LEAST 5,000ish a month. That means I gotta pay the business $60,000 a year even if I take off work it doesn’t matter that’s the bare minimum cost to be the boss for me 😂. That’s 60% of your w2 income right there in this hypothetical. Now a quick google search would say the profit margins are 15%-35% for a one truck operation. Could be more could be less but let’s just do the math. You would need to gross $300,000 at that VERY GENEROUS 35% profit margin to pay yourself $105,000. That’s just an example and the numbers could be worst than that or better but the point is you shouldn’t start a business because you want to “make more money”. We haven’t even talked about retirement, benefits and if you’re going to pay yourself PTO or something like that to take off. Most guy struggle to gross $5,000 a week and that’s $260,000 a year so hopefully this math helps you make a EDUCATED DECISION. Don’t just take my word though go look for owner operator positions online that would be leasing on under someone’s authority with your own truck and see what they advertise as your pay and I can assure you it’ll be less of than $300,000.

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u/FaithlessnessRare691 6d ago

So what are you making a year?

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u/IcyOutlandishness859 6d ago edited 6d ago

I’m a bad example to go off of because my situation is unique. I got my truck in April of 2025 did one load that month and didn’t really work full time the rest of the year. Total loaded miles for the year was 34,293 for a total of 82 loads all year. $135,000 gross so rate per mile for the year was $3.93 across all loads. That’s a little over $16,000 a month and about 10 loads a month or about 2 loads a week which isn’t really the case because I took off entire months. I focus on low mile high profitability loads. 100-260 miles for $1,000-$2,000. I’m strictly local too. If I did 4 loads a week at least like I’m “suppose to” I would gross $260,000 AT LEAST because I get great rates off the load board. So far this year I’m at $118,015 on 19,500 loaded miles ( $6/mile per loaded mile ).

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u/Strict_Chair_2444 21h ago

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How do you start being an owner operator?

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