Everything except driving is being taken care of, you only need to be on time, accident free and cover as much miles as you can weekly. An owner operator, in most cases, operates their own equipment and has a say in where, when and how they decide to run. Lease their tractors from a trucking company, and then contract to haul that companys freight. It can be a great choice if youre good at budgeting and saving, as higher-paying loads can make up for the lesser ones. Top 5 Trucking YouTube Channels. Owner-Operator. Owner-operators are responsible for their own safety and equipment, which can lead to a higher level of job satisfaction. S&H Express is seeking CDL-A experienced owner-operator and company truck drivers. ? With enough information, you should be able to make a decision thats right for you. Additionally, company drivers have their schedule determined by the company. Figure out what sort of equipment youd need, and which upgrades youd find worth the extra cost. Of course, everyone is different. As vocational aspirations go, being your own boss is a classic. One key difference between these two drivers is that Owner/Operators receive 75% of the profits for every run, whereas company drivers receive 25%. More opportunities to widen your network How to become an owner-operator Step 1: Self-evaluate and figure out what you want to achieve Step 2: Get your DOC and MC numbers Step 3: Minimize expenditures They are independent owners that work with trucking companies to haul loads. There are many pros and cons of being an owner operator vs a company driver, but one of the main differences has to do with how much money each one can make. You make all the decisions about how to run your business. In general, being an owner operator gives you more freedom since you are your own boss. Despite the name, owner-operators dont necessarily own their trucks outright; you could always lease. But a predictable schedule isnt the same thing as working (or not working) whenever you want. You make all the decisions about how to run your business. Many drivers find that the biggest barrier to entering the owner-operator world is the cost of a semi-truck if you cant afford to purchase your own vehicle, then working as a company driver may be the best option for you. Only you can decide whether being an owner-operator or a company driver is the right choice for your personal circumstances. With a little planning and easy-to-use technology, you will be growing your business in no time. Vehicle registration. As an owner-operator, youre free to do so. Silver Spring, MD 20904. . This could possibly be attributed to the fact that owner-ops have more experience and have become accustomed to using trade magazines throughout their tenure. If youre looking for more stability and lower risk, then you might be better suited to working as a Company Driver. Owner-operators can also deduct the depreciation cost of there truck in a particular tax year that it was owned and used in your trucking business. How many loads can you pick up and drop off? If a company driver is let go, they may have a hard time finding new work quickly, as they will need to start the process of interviewing and onboarding with a new company from scratch. As an owner-operator, bad years hit your personal finances. As a company driver, youre an employee of someone elses business. Even if you ultimately decide to become an owner operator vs. company driver, this gives you a chance to. The upside? Here are some of the benefits and drawbacks of hauling freight as a company driver. Answer the following six questions to find the answer. You get to choose the truck you drive and don't have to worry about anyone else messing with your settings. Many fleet drivers also have adas in their vehicles to make sure they're driving . Additionally, youll have the opportunity to make more money. SilverSurfer said: Here's the basic breakdown. Learn more about it here. Employee drivers may have to deal with office politics or company policies, while owner operators have to worry about if they will be able to get a paycheck. Fuel discounts of $0.40 to $0.50 per gallon. Look for future partners: bankers, accountants, lawyers, other drivers. Otherwise, after paying expenses, you could end up making less as an owner operator vs. company driver. This is because Owner/Operators cover their own costs, requiring a higher income to sustain these costs while also paying themselves. Youre responsible for 100% of the losses. The right choice for you depends on your personal and financial goals; what you like about the trucking industry; your tolerance for business risk; and about a million other factors. Truck Owner Operators vs Company Truck Drivers: Pros and Cons 51,179 views Oct 3, 2020 We invited our owner-operators and company drivers to list some of their biggest pros and cons of. But is that your best option? Ines Zemelman, EA. Being your own boss 4. Owner-operators have the opportunity to be their own boss and run their business however they see fit. The capital investment of being an owner-operator can be a limiting factor for many drivers, as the cost of a semi-truck and the necessary maintenance can be prohibitively expensive. But in general, company drivers typically make between $15 and $25 per hour or 38 to 52 cents per mile. Fort Worth, TX 76131. Of course, there is also a downside to being a company driver. Mileage usually comes with a more consistent income, good if youre supporting a family. . With the Truckstop Load Board, its easy to find loads, negotiate rates, and even compare loads side by side to get the best rates! In contrast, the salary you earn as a company driver automatically removes all taxes and fees. Although they make more income per load, they also must pay all the expenses of operating a truck and business. The owner-operator knows the industry inside and out. Were listing this as a probut if what you really love is driving, and the rest is a distraction, this could be a drawback. We leave you with one critical piece of advice, no matter which route you choose. Responsibilities. Perks of Becoming an Owner-Operator While there is no guarantee that you will have more money in your pocket as an owner-operator, you will have the potential if you are running your trucking business efficiently. Owner/Operator and Company Driver are two terms youll hear often when it comes to the trucking industry, but they may not mean much to you if youre new to this world. Owner operator pros. Want to put a sticker on your truck, or paint flames along the side of the cab? If an owner-operator isnt on the road, they dont get paid. While your paycheck will be steady, you wont have the same financial opportunities as an owner-operator. We always frame self-employment as being your own boss. You could just as easily say youre your own employee. They dont need to worry about paying taxes, managing insurance, or handling other complex administrative tasks that an owner-operator cant avoid. Genuinely are their own bosses. A company driver is a traditional employee. #1: Being in charge Owner operators generally earn higher per-mile rates than company drivers, or a percent-of-load rate. In a nutshell, Owner/Operators are their own business but contract out their services to trucking companies. Owner-operators are responsible for all expenses incurred while operating the truck, such as insurance, fuel, maintenance, etc. A common complaint among carriers is around the struggle of negotiating with brokers. Company drivers typically have less responsibility than owner-operators and may find the work less stressful. Then you may find more freedom in the right company driver job. While there are many similarities between the two types of drivers, its important to choose which driver is right for your needs. When a contract ends, its up to the owner-operator to find new work to maintain revenue. A successful owner operator business requires lots of road time AND lots of break time or home time spent taking care of business. However, they must contract for enough loads, at high enough rates, to both cover expenses and make a living. Again, remember that these come down to personal preference, and even a detractor may be outweighed by the benefits of either role. It's also possible that your salary will be lower than that of an owner-operator. Theyre knowledgeable, disciplined business people dedicated to their work 24/7. That includes regular drug and alcohol testing, remaining alert behind the wheel, and following hours of service rules (while tracking hours on the trucks electronic logging devices [ELD]). Exactly how much youll make varies by the company you work for, as well as the region and even the type of freight. However, prospective owner operators absolutely must get their financial houses in order. (Since youre not a company employee, no taxes are withheld from your paychecks.). Owner operators tend to have more control over their careers than trucking companies. You have to pay for truck insurance, freight insurance, and fuel. Many owner-operators work on their own terms, often driving full-time with one or two weeks off every month. Owner-operators are able to generate more income than company drivers, but they also have a high overhead. (You wont be if youre operating your own business.). According to the Bureau of Labor Statistics, annual pay for cargo van drivers varies from $24,000 to $38,000but as an owner operator, you . Company Truck Driver vs Owner Operator Taxes. Many (though not all) carriers also offer benefits to their company drivers, like health insurance, vacation time, and other perks. So what exactly does it mean to be an Owner/Operator or a Company Driver? If you can afford it, you can do it. You're risking a lot to become a business owner. Look for a good career advancement program that offers rewarding growth opportunities. If youre a truck driver or thinking of becoming one, you might wonder whether its better to be an owner-operator or company driver. Prefer to drive three days a week and spend the rest at home? Either way, the good news is that youre not stuckyou can pivot from company driver to owner-operator and back again. Get a feel for how much home time you need. With a number of convenient locations across the United States, LubeZone is here to serve you no matter if you are an owner-operator or a company driver. Want to become a driver at Sunburst? Some of the biggest benefits of working as an owner-operator are as follows: Keep in mind that these benefits may not be appealing to everyone, and there are plenty of cons that we have listed down below. ), a map or minor office supplies, and the odd expense like a ticket. Owner/Operator: Everything is paid for by you, including . In most cases, you'll be paid by the mile and receive benefits, such as medical and dental insurance. Employees avoid the financial stress that owner-operators sometimes face. My last week as company driver I did 3000 miles and my . Ready to start your owner-operator trucking business? The following are a few of the benefits for both owner-operators and company drivers. In theory, owner operators can choose to be home more. Owner-operators have much more responsibility than company drivers, and the workweek never truly ends when you dont have set hours and clear boundaries for your responsibilities. Owner/Operators are responsible for all of their costs while Company Drivers have their costs covered by their employer. Weve just launched our new mobile factoring app! Search active loads by location and equipment type. Sign up for a free, 7-day trial to experience Bobtail today. Although every carrier sets its own pay rates, in general, short-haul company drivers are paid by the hour while long-haul drivers are paid by the mile. Youre driving the routes, taking care of your equipment, negotiating rates, and building relationships with shippers and brokers. This could possibly be attributed to the fact that owner-ops have more experience and have become accustomed to using trade magazines throughout their tenure. Youll be responsible for keeping your tractor, books and business in order as well as for building relationships with vendors and potential clients. Certificate of insurance. At what cost? Thats the dark end of entrepreneurships risk vs. reward spectrum. If youve been driving OTR for more than five years, then you know what you love about the truck driving life. Before you finish your business plan, youll need to choose which sort of owner operator youll become. Making more money. If theres a surplus at the end of the year, you can reinvest it or take a hefty dividend; your money, your choice. then you may find comfort in submitting a maintenance issue to the manager, climbing into your personal vehicle at the end of the workday, and heading home without worrying about paying for an unexpected repair and losing income while youre truck is in the shop. One mans entrepreneurial dream in anothers nightmare. From full-service oil changes and preventative maintenance, to complete truck repairs, our team of certified technicians is ready to help keep you on the road. That sounds awesome but an owner operator has overhead and other expenses to pay for. Owner-operator vs. company driver Benefits of being a trucking owner-operator 2. However, they make more per mile for long hauling. Increased control over your income 3. If youre looking for the ability to make your own schedule and be your own boss, then becoming an Owner/Operator may be better suited for you. (Some companies will review a drivers experience and help them determine when theyre ready to become an owner operator.). A lot of lease operators make about the same as company drivers after all expenses, that is why many of them go back company. If you drive for multiple carriers, you might be able to mix and match, but be aware that your record-keeping will be more complex. Some companies also offer bonuses at sign-on, as well as whenyou meet certain milestones. Then you can launch your owner-operator business and see how you like it. Owner-operators have more control over their own schedules and make more money, but also have more responsibility and risk. Additionally, youll have the opportunity to make more money. Some companies offer a minimum guaranteed weekly pay, so even if the work is slow, you wont lose income. Youre running a business, handling everything from management to the day-to-day task of hauling freight. Owner-operators can design their schedules around their personal lives, leaving room for things like childcare, home projects, and more. We are sorry, something went wrong. Whats the difference between the two roles? The responsibilities on the shoulders of owner-operators are numerous. Example of facts tending to show an employment relationship: Company owns Driver's truck, tells him where he has to go for maintenance. If you sign a contract to drive for a single company, youll typically have to choose just one payment method. $$$$$ owner operator vs company driver .. Learn what you can about maintenance, safety, fuel efficiency, Department of Transportation (DOT) regulation, federal and state laws, permits, claim filings, taxes and recordkeeping. Should you make your way in the trucking industry as an owner-operator or as a company driver? The trucking company pays all of their costs and provides them with standard employee benefits such as PTO, health insurance, and covering maintenance costs. They must keep driver qualification files (DQFs) on themselves or other drivers, if they hire. Theyre just different. Owner operators have a lot more power over their work schedules than company drivers do. Owner Operator vs. Company Driver: Which is Right for You? An owner operator is an independent truck driver who owns or leases their own trucks. However, if you operate a vehicle locally, the pay will usually be by the hour. 100% of the Fuel Surcharge. Owner operator vs. company driver: which offers the freedom and rewards you want? They assume all the risks and responsibilities of business ownership. Can you trust them to give you (rather than their company drivers) enough business to make a profit or are you on the hook for lease payments that may exceed your earnings? Either way, youll find yourself behind the wheel. That being said, company drivers have the potential to earn very competitive pay, and since they don't have the same costs as owner-operators, the final earning potential is highly variable. Company drivers paychecks and free time are their own, to spend as they choose. They generally dont have access to the lower-cost, company-subsidized group plans available to company drivers. An owner operator is someone who would not work for CR England. But when it comes to being your own boss, you also have the responsibilities of a business owner, meaning its your responsibility to take care of the costs of running a business on top of other responsibilities. Thats easier than ever, thanks to load boards, spot trucking, and broker networksbut it requires a lot of forecasting and future planning. Federal Motor Carrier Safety Administration, 12510 Prosperity Drive Being a fleet driver means you'll have more restrictions, but you trade that for stability and job security. This essentially means that owner-operators are independent workers with the freedom to pick the jobs and the loads they accept. Successful owner operators arent lone wolves, free to roam the roads. Contact us today to learn more about how we can serve you, or stop by your nearest location for all your trucking needs! If you are a company driver, you have less freedom, and less time off, and you don't get to choose your own jobs. Unlike legacy factoring companies, we dont charge hidden fees; you pay a single, low factoring fee between 1.99% and 2.99%, depending on business size. Does your company respect its drivers? The money you spend on the road for work could boost the amount of money you get back from taxes. Drivers with more experience and specialty endorsements such as HAZMAT typically earn closer to the top end of the range, while newer drivers earn closer to the lower end. Owner Operator ProFreedom Your business is yours, your truck is yours, you can create your own schedule, determine your own routes, and make all the executive decisions. You can decide if you want to travel with a partner (animal or human). If you are willing to take on more responsibility and risk for the chance to make more money, then becoming an owner-operator could be the right choice for you. will likely be paid fully by the carrier. No matter what you decide, remember that there are always pros and cons to any decision the key is to find the right balance for you. A company drivers paycheck is only as good as the company they work for if the company is struggling, or doesnt pay a competitive wage, the driver may suffer the financial consequences unless they find a new position with a more attractive company. By providing your email, you indicate you have read and understood our Some companies also guarantee minimum weekly pay to protect your earnings during wait times or breakdowns. Theyll get paid regardless. Its easier to walk away from a job than from a substantial down payment and lease or loan obligations. If something goes wrong, the owner-operator is the one that pays for it in both time and money. Lease-operator: With this option, you're leasing your truck from a trucking company and hauling loads for the same company. They are responsible for their truck payment, truck repairs, insurance, and maintenance expenses. You dont share the fruits of business success. Double Leap LLCJob Details: Dispatch company finding loads for cargo vans. Youll use your companys equipment to haul designated loads on specified routes and be paid either by the mile or by the hour. Where would one get a truck from . Soon after you get your CDL you can sign up with a company and start earning a paycheck. A company driver is a regular employee driver for a trucking company. Which Career Path is Right for You? Please send these documents so I can register you with our company. Above all else, working harder and smarter is the key to earning more. What do its leading company drivers earn per year? Independence: An owner-operator has more freedom to select which loads they want to transport. Interested in learning more about the difference between these two roles? Since the equipment belongs to the company, they handle the maintenance. Before you decide to strike out on your own, be sure youve tried one of the best company driver jobs available in todays market. Owner-operators are responsible for maintaining their own equipment and ensuring that it is properly insured as well as the costs associated with keeping a semi-truck on the road. They don't own the vehicle they drive, aren't financially responsible for vehicle maintenance, and are usually paid per mile. Factoring companies pay your invoices today, then collect from the brokers or shippers who hired you. Owner Operator Owner operator is an independent driver who has his/her own assets. Owner operators have a lot more power over their work schedules than company drivers do. A lease operator is a glorified company driver that pays all the bills and expenses, but owns nothing. A lease operator is a contract driver, tied into the carrier through the lease to haul their loads, and can not haul loads independent of the carrier they are leased to. You also wont receive company benefits, like vacation time or health insurance. In this instance, you're not actually a true owner-operator since you're still tied to a . An owner-operator is a self-employed commercial truck driver or a small business. Its probably best to learn the ropes as a company driver before taking on the significant financial obligations of an owner operator. Company truck driver tax deductions are a terrific method to save money on taxes. There are pros and cons to being either an owner-operator or a company driver. An employee who hauls freight with tractors and trailers provided by their employer, usually paid per mile driven. (If you dont, you probably wont have that job for long.) Fleet: The nice thing about being a company driver is that you start and end at the truck terminal. As a result, keep meticulous records of any job-related expenses. Company truck drivers dont have to worry about running a business, but they do need to comply with company rules and policies. Owner operator trucking vs Company Driver. For some drivers, the choice between the two roles may be obvious. Keep in mind that while each of these can be seen as a positive, they may be outweighed by detractors that are unique to your own situation. Thats the question, and theres no easy answer. That's the whole point of this podcast, to . From our side, we can pair you with companies that offer great rates and percentage pay. Follow us on LinkedIn, Facebook, Instagram, and Twitter to keep up with our latest industry insights! That can create cash flow problems, and since your truck runs on fuel, cash flow is essential for business survival. There are technically three types of owner . Owner-operators are in charge of customer acquisition and account management. It pays to drive for the best! Both have their pros and cons, and there is no single right answer for all drivers. Owner operators have to find and pay for their health insurance plans. They can also drive part-time and take off as much time as they want. Will family obligations pull you away from work? The solution to cash flow problems in the trucking industry is a financial tool called invoice factoring. A boss wont tell you when to work, but the market might. They use vehicles that belong to the companies they're working for. Thats very different from confronting the challenges facing a small business person as an owner operator vs. company driver. Company driver: An employee who hauls freight with tractors and trailers provided by their employer, usually paid per mile driven. 2017-2022 LubeZone | All Rights Reserved. Do you prefer the security of a steady paycheck, letting someone else suffer truckings maintenance, marketing, financial, legal, regulatory and administrative headaches? Learn to live on a budget. Our business address is: Attn: Class A Drivers MH Sub I, LLC dba Internet Brands 909 N. Sepulveda Blvd, 11th Floor El Segundo, CA 90245 To: [email protected] Name: Email: Subject: Message: The Difference Between Company Drivers and Owner-Operators. When you drive for someone else, you make more money than you take home. One of the biggest advantages for many drivers is a consistent paycheck. But you won't have such job stability and all the other additional benefits that come with working in a company. Owner operator vs. company driver when you understand why YOU drive, youll make the right choice. However, it also involves a great deal of responsibility. Owner-Operator vs. Company Driver As the name suggests, an owner-operator both owns and operates the truck that he is driving. In the same vein, if you find that the idea of being solely responsible for the operating costs of a semi-truck fuel, maintenance, wear and tear, loan payments, etc. Owner-operators have a great deal of flexibility and independence, but they are also responsible for the business side of their operations. That means paid vacation and, often, good health insurance (no small perk). Of course, they also have to find, price, book and drive every trip (and return trip, too). Be sure youll be happy with the loads and routes youre most likely to drive, too. These include, but are not limited to: Youll also be responsible for your own taxes. Void Check or Direct Deposit Form for payments. There are advantages and disadvantages to each, many here will tell you being a lease operator does not pay enough for the risk, I will put here the weekly gross compare to my best week (I was a company driver only for couple of month) As company driver. Reduce or pay off your debt. She and others like her bring a fresh face to trucking, and don't fit the traditional idea of what an owner-operator looks like. Youre in charge of how you want to run your business, how much or little you want to work, where and when you want to deliver cargo, and which jobs youll accept. The cons can include long hours and lower pay. Here are some more details on what you can expect as an owner-operator or a company driver. The average income of a company driver is about $55,000. 1100 Northway Drive They drive the company truck assigned to them. When it comes to being an owner-operator, there is a lot of responsibility that comes with the job. Owner-operators make more money than company drivers. For this business, you will need to find a . They are an independent business person who is responsible for finding their own work, maintaining their truck, and covering all of their own expenses in the trucking industry. Owner-operators do. A company driver is provided a truck to drive by the company they work for as an employee. If youve been a professional truck driver for fewer than five years, then your best choice might be a company driver job. Do you have $15,000 or so to invest in an owner-operator business. You can brand your company however youd like. Look below at a breakdown of some of the biggest pros and cons when it comes to deciding whether or not you want to work as a company driver or take the leap and become an owner-operator. How do you find your way home in the event of a family emergency? Does your home life give you flexibility to work odd hours? For many drivers, the biggest advantage to being an owner-operator is freedom and money! Remember that preventative maintenance is key to keeping your vehicle on the road and avoiding costly repairs. There are many benefits to working with Owner/Operators and Company Drivers, with both being skilled professionals dedicated to delivering your cargo safely and efficiently. If youre excited by the prospect of becoming an entrepreneur, then be prepared to learn everything about trucking. You can potentially earn more money as an owner-operator, too. Our preventative maintenance solutions are designed to get the professional driver back on the road FAST. Owner-operators are truck drivers that own their own trucks and only haul truckloads from the company. As an independent business owner, you will typically be responsible for your own insurance costs. An owner-operator is an independent business person who owns or leases a truck and contracts with either shippers or freight brokers (or both) to haul loads. Whether youre a company driver or an owner-operator, you must comply with safety regulations set forth by the Federal Motor Carrier Safety Administration (FMCSA). Also, be prepared to supplement your earnings in the early days you may not receive your first check for two or three weeks. After all, the day-to-day tasks youll perform are largely the same: loading and unloading freight and driving your truck on the open road. No one peers over your shoulder at work, judging your every move. If you have to hurry back home, you need someone to take care of your truck and load. The trucking company for which youre hauling is your lender, too. The business owner trades one boss for many, with every customer asserting some control over schedules and income. If theyre above average, then you may be better off driving for a company known for supporting drivers in times of crisis. Common owner-operator expenses include truck/trailer lease/purchase, insurance, fuel, maintenance, etc. Are you prepared to carry high dollar freight? If you do become an owner-operator, you may struggle with a quirk of the industry: Brokers and shippers often take weeksor even monthsto pay your invoices. Owner-operators have more control over their own schedules and make more money, but also have more responsibility and risk. Always Partner With A Good Carrier. Owner Operators Forums - Being an Owner Operator: Pros, Cons, Advice, Discussion . Call Davey now for more Owner Operator details: (833) 673-1558. Again, its less stressful than running the business. Owner operators usually prefer the financial independence of this arrangement, as opposed to being a lease operator. You are not just responsible for purchasing a truck, but you are also responsible for keeping that truck on the road. Unless you happen to have another source of healthcare, youll need to sign up independently, such as through the national health insurance exchange at Healthcare.gov. Suite 302 Owner-operators are essentially self-employed truck drivers that own their trucks and manage the jobs they do themselves. Owner operator vs. company driver - what's the difference? They are financially responsible for their own fuel, insurance, equipment upkeep and repairs. There are two basic methods: Percentage of load can result in some big paydays, but also some loads that dont pay that well. . Some companies also guarantee minimum weekly pay to protect your earnings during wait times or breakdowns. You might be wondering how owner-operators get paid. Here are just a handful of factors to consider. As an owner-operator, you're free to do so. It should be large enough to cover a down payment and other start-up costs. Owner-operators tend to lean heavily towards printed magazines while company drivers tend to prefer email newsletters. An owner-operator is a truck driver who owns his or her own truck. What are your companys top mileage rates? Build a healthy savings account, too. Strategic Dispatch. However, if the truck requires maintenance at the end of the day, it will . Owner Operator vs. Company Driver. There are Main differences between Owner Operators and company drivers. What loads do you hope to haul? For company drivers, the pros include regular paychecks, benefits, and job security. You wont need to find and book your own loads, and your employer will typically keep you busy. You have to handle business compliance as well as driver compliance. Dont forget: that income needs to arrive BEFORE your bills come due. We dont even make you sign a contract. What is an Owner Operator? They own their equipment and book their loads. Purchase their trucks independently or lease them through a third-party leasing company, and then contract to haul a single trucking companys goods. But behind the scenes, there are many differences between the two that can affect your career. You might also earn per diem, which is reimbursement for meal and lodging expenses while on the road. Here are some of the benefits and drawbacks of being an owner-operator. An owner-operator is a contract driver with full control over the loads hauled, but does not have authority. If you find a great match with a company, thats not a problembut if you disagree with a rule, it can be grating. Thank you for subscribing to the Truckstop newsletter. We consider the following the most important differences that you need to make sure you understand to get a clear idea of how owner operator trucking works. Company Driver As a company driver, you'll operate a truck owned by the employer. There are several company drivers (depending on their company) that make as much as an owner-operator. Owner-operators tend to lean heavily towards printed magazines while company drivers tend to prefer email newsletters. That means fewer headaches but also less control. The 5 BIGGEST DIFFERENCES Between Company Drivers & Owner Operators Trucking From Scratch 33K views 2 years ago 4 Month Owner Operator Lease Purchase Review at PAM Transport Driver. This is because Owner/Operators cover their own costs, requiring a higher income to sustain these costs while also paying themselves. Some companies also guarantee minimum weekly pay to protect your earnings during wait times or breakdowns. Youll get to make all the decisions, especially if you are a self-employed independent contractor. For company drivers, the pros include regular paychecks, benefits, and job security. It might make sense to start as a company driver, save up some capital, and eventually buy your own truck. So, which is better? Lone Star Transportation. Ask how they got into the business and what most surprised them. Consider what is most important to you in a trucking job before making your decision. Owner-Operators. (For a realistic view, see this Popular Mechanics article.). Read more: What Is an Independent Contractor Truck Driver? If you do not have the money to buy your own truck, then working as a company driver may be the best option for you. Owner-operators must come up with the money to purchase their semi-truck, whether through financing, leasing, buying used, or any number of other options. The freedom to choose your own routes, set your own schedules (dependent upon jobs taken, of course), drive the truck of your choosing and selecting your own policies and rules (again within reason and regulations.) Still, they have the freedom to haul what they want, through a broker or by leasing their truck to a company. Furthermore, owner operators are on their own when it comes to waiting or breakdowns, finding health insurance and just about everything else. Owner operators have their own authority so that anyone in their business can successfully and legally transport freight. If you get sick while youre on the road, who delivers your freight? There are many pros and cons to weigh between being an owner operator vs. being a company driver. At one point in time, nearly every company driver has dreamed of being an owner-operator. To make a plan for progressing in the trucking industry, ask a few more questions: The answers can help you decide which path to take. Click here to learn more or to apply. On the other hand, we have the company owned-trucks, where the company owns the truck and the driver is hired in the capacity of a company truck driver. The paperwork is endless. Many carriers offer their drivers set schedules; maybe you only drive Monday through Friday, and youre home every weekend. Here are some common requirements carriers look for when hiring owner-operators: Pass company driver requirements At least one year of driving experience (some require one to two years over-the-road experience in the last three-to-five years) Meet all DOT (Department of Transportation) requirements, including passing the physical and alcohol screen CDL-A Owner Operator: Make $4200-$5000 Weekly. Staying healthy may be less expensive as a company driver, too. One key difference between these two drivers is that Owner/Operators receive 75% of the profits for every run, whereas company drivers receive 25%. Is your employers package competitive: great pay, benefits and working conditions? Your free time is all yours. Are you looking for a business opportunity or just a steady paycheck? Company driver Vs. Most times . Employees hired to drive for the company generally get paid by the hour for local routes. Company truck drivers use vehicles owned by the employer. Do you have any other factors that helped you decide whether to work as a company driver or as an owner-operator? Owner-operator vs. independent contractor. Many owner-operators don't consider the amount of income to set aside for taxes or the many other challenges owning your own business presents, and often find themselves making less money than company drivers' after all expenses are accounted for. Understand how driving affects your lifestyle. Company drivers may not need to worry about some of the things that owner-operators do, but there are still some potential drawbacks to the job, including: These are just a few of the pros and cons of being an owner-operator vs a company driver there are many more to consider before making your decision. Owner Operator vs Company Driver Job Differences Company Driver Job - The Perks You get to leave the job and worries behind when you take the key out. Being a company driver has its benefits like no start up costs. #3: Work on your own terms To be a successful Owner-Operator, you must be successful at driving a truck and at running a business. Only then will you know whether youd be happy earning more by hauling bigger, more specialized loads without taking on additional financial, marketing and administrative responsibilities. Once you leave the keys in the ignition, your responsibilities are over. Learn the 10 steps to success here. This varies depending on the contracts the owner-operator has made, yet for the most part, owner-operators have more independence than company drivers. There are pros and cons to being either an owner-operator or a company driver. Copyright 2022 Sunburst Truck Lines, Inc. | All Rights Reserved. You cant say being an owner-operator is better or worse than being a company driver. Company drivers dont have to worry about the bottom line. Company drivers may not need to pay for their own vehicle, fuel, insurance, and other unavoidable business costs. Working for the right outfit, you have the freedom to tackle all the rewarding challenges you want. Let us know in the comments below! They typically do not have, or have very limited benefits, from the trucking company they contract with. It offers easier access to loads than that of a self-employed independent contractor, too. We dont impose volume requirements, so you can factor one invoice and take the next payment straight from the shipper. Once home, a company driver leaves the hassles of the job behind. Nov 28, 2008. On top of that, while you can dictate your own work tempo, you will need to be well-prepared for any unexpected situations. 0. There's no worries to take home with you. You just open the app, upload load details, and get funded. Experienced drivers know youll spend a surprising amount of time waiting: for weather, traffic or breakdowns to clear, and for loading or unloading. Some things to think about include: If you decide to become an owner-operator, or if you are a company driver with your own authority and can pick up extra loads, youll need a place to find them. Company drivers may have less opportunity to negotiate their contract and may have less say in the overall direction of their work. The flip side to this is your share of the revenue is smaller. If you need the money, you may end up driving more than youd plannedand the loads you need to keep cash flowing could have you driving evenings, weekends, or on days you were hoping to take off. In the final analysis, you drive for the money, the freedom and much more. Weekends OFF! The cons can include long hours and lower pay. The defining factor of this trucking model is that youre operating a carrier business, typically starting with one employee: yourself. Pro - More Control One of the major reasons truckers wish to become owner-operators is the sense of increased control. As an owner operator, you get to choose all of your own equipment. Discussion in 'Ask An Owner Operator' started by Express12$, Jun 14, 2018. While company drivers get paid an hourly wage, independent contractors can earn over 70% of the freight bill. The company driver goes home with most of their income intact. Because an Owner Operator bears the costs of doing business, things like rising fuel costs, etc., tend to hurt the bottom line. Its easier to get your hands on a truck and a load. Every carrier has different rules for their drivers. They can work independently or lease their truck to a trucking company. TripleSix, Jun 17, 2013. Company drivers usually have set schedules and routes, which can be inflexible and may not allow for much personalization or freedom. A steady paycheck is nice, but it doesnt reflect the full value you create with your work. Comparing experiences of the owner-operator vs. company driver, there are benefits and drawbacks on both sides. There are three possible ways to work as an owner operator: 1. Know all your familys expenses and how much income you need to cover them. Typically, an owner-operator can expect a higher gross income up to three times that of a company driver. Owner/Operators take 75% of the profit for a run, while Company Drivers make 25%. The following are a few cons that come with acting as an owner-operator or a company driver. Annual revenue for an owner operator could range from $240,000 to $350,000 or more if you are a team driving . Are you guaranteed a daily or weekly minimum? Whereas company drivers tend to get paid by the mile, and usually their only costs are road money (funds to live on, food, showers, etc. But owner-operators have to handle business compliance, too. Unlike a company driver, they supply and maintain their own trucks, insurance, and gas. They usually partner with an FTL services provider such as us here at REY Logistics. Claiming Your Truck Driving Deductions Many people are happy to work in one capacity or the other, so it really comes down to what you are looking for in a trucking job. We are passionate about providing help and support to the owner operator to be successful at both. 06 October 2021. When looking for an O/O or a C/D you need to consider if they work in your area, as well as their availability during seasonal rushes such as Christmas. In other words, your employer is also acting as your lender. 1. Company drivers often have more job security than owner-operators, with less to worry about once they turn their semi-truck off for the night and head home. The Truckstop Load Board offers three subscription levels, so you can decide which services you need. Some of the most obvious benefits of working as a company driver include: As you can see, there are several benefits to acting as either an owner-operator or as a company driver, but the weight and importance of each benefit are up to your personal preferences. Research carefully before pursuing this option, however. The upper percentile of company drivers make a lot of money, and the upper percentile of owner operators make a lot of money. Owner-operators have more freedom in this department. Please try again later. You might not be paid for time waiting for a shipper or receiver, and you usually cant pick up last-minute high-paying loads. Company drivers are not required to maintain their own client lists and handle outreach for new client acquisitions. How a husband and wife team went from running a van to operating their own trucking company using Truckstop. It really depends on what you are looking for in a trucking job. The choice between company driver vs. owner-operator starts with yourself. Company drivers just get in the truck and go where theyre directed. If youre considering the path of owner operator vs. company driver. Even if you only want to drive three days a week, financial considerations can force you into less standard working hours. Unlike company drivers, Being an Owner/Operator is a lot like being your own boss, but with some key differences. With channels like hers, the trucking industry is making its way into the lives of a whole new generation. Owner-operators usually earn significantly more than company truck drivers as they can take full control of their finances. You get to pick your truck. Given the industrys shortage of truck drivers, which continues as we publish, many fleet owners are offering attractive benefit packages in an effort to draw the best drivers in the industry. If you dont feel like driving, you dont have to drive (assuming youre not breaking a contract, of course.) LubeZoneis the fastest growing dedicated semi-truck service in the United States with locations in Texas, California, Oklahoma and Georgia. Part 1 of a 3 part series. A company driver is employed by a company and drives a company-owned truck. Discuss what it takes to be successful. As a company driver with the right employer, you can find a working schedule that works for you. Whether youre making good time or broken down on the side of the road, company drivers get paid (some jobs pay by the mile, to be sure, but you can also find carriers who offer conventional salaries). LubeZone offers a wide variety of semi-truck maintenance services that will help keep your vehicle on the road and making money, not in the shop, or sitting on the side of the highway with a broken-down engine. Less freedom and flexibility. Unlike Company Drivers, Owner/Operators are not employees but contract drivers. Do you look forward to relaxing on your breaks and days off? Are you willing to learn how to create business plans and budgets and marketing initiatives? Owner operators have the most potential to lose or make money. Schedule Flexibility. However, both groups show frequent use of handheld devices and . Down the road, youll rely on your people skills to market your services, work with brokers and dispatchers or negotiate lower costs from vendors. Local/regional and over-the-road loads. For those who dont like to feel constricted, this is a powerful benefit. Company drivers may have more opportunities for advancement than owner-operators, as the time they spend working for a particular company may lead to promotions, more input into routes and schedules, and more. Owner operator vs company driver. The less control the trucking company has over the owner-operator, the less likely it is that the owner-operator is an employee. An owner is usually fussier about vehicle appearance and maintenance (although I've seen exceptions to this rule), than a company driver. Company Drivers. When you run your own business as an owner operator vs. company driver, you handle all of these areas on your own or pay someone else to. Owner-operators have the chance to choose the route they take to deliver freight. Practice developing good relationships. Owner/Operator vs Company Driver: What's the difference? Many people enjoy the additional control, but many others cant be bothered with the hassle. As a company driver, youre bound by the procedures and protocols set forth by your employer. If youre a driver in someone elses fleet, heres what you need to know about the pros and cons of owner-operator businesses. Are you assigned your own cab, or does slip seating force you to share it with an irresponsible slob? Certain carriers may allow their carriers to do so as well, but most will prefer their drivers take a particular route. You are the sole employee running your own trucking company. You are Owner of your Truck. #3: Work on your own terms The newly self-employed quickly realize its also a myth. An owner operator is a truck driver that owns their own rig be it a tractor or tractor trailer. As a company driver, you must take what loads and shifts the company gives you. As a professional driver, you enjoy the independence of the open road. Should you learn more about hauling permitted loads or specialty goods? Being an owner-operator means that you are responsible for all of the costs. Any insurance required for the equipment or required for operating the truck (cargo, liability, etc.) Bobtail is a factoring service built to streamline carrier funding. The company looks after all the expenses that go to keeping that truck on the road. Talk about the business with owner operators you meet in the drivers lounge or at your current company. When one contract ends, the company is responsible for finding new clients, managing the accounts, and keeping their drivers on the road earning a paycheck. Drivers license. The Benefits of Owner-Operator vs Company Drivers November 16, 2022. Thats why they often decide to spend weeks at a time on the road to cover their costs and increase their earnings. Company drivers are free of the burdens of ownership. Youll need to choose a business structure, keep receipts and strict records, file a more complicated tax return, and pay the taxes you owe. Still, in the trucking industry, lots of company drivers dream of becoming owner-operators. There are many advantages to being an owner-operator or a company driver depending on what a driver wants. They enjoy the freedom to choose the routes and loads they drive, too. Look within, make some goals, and pick the employment model that works for you. An owner-operator is an entrepreneur. Company drivers are truck drivers employed by carrier companies. There are three basic types of owner-operators: Lease operators: As a lease operator, you'll lease your truck from an established trucking company and then haul loads for that company. Working with company drivers and owner/operators Someone else pays for the truck, schedules maintenance and finds the next load. The truck driver shortage is a symptom of a larger problem. Authority is a designation that every carrier company needs in order to transport goods in the United States. The biggest differentiator between the two is who owns the operating authority. Know what these costs will average per mile once youre driving your new truck. #2: Higher pay, more responsibilities Typically, owner operators will earn more money than a company driver. And as an employee, you can pay yourself a salary. Company drivers dont get to make these choices. Are you happily single or in a stable relationship with a partner wholl support the demands of an entrepreneurial business? Do you just love driving, or are you also interested in business management? They own and operate trucks for transporting goods over highways for their customers. Are you paid more based on skill and industry experience, or solely on seniority? especially if you are a self-employed independent contractor. Owner operator vs. company driver - what's the difference? Do you need more experience or qualifications? What regions do you prefer to drive, and which offer the best opportunities? 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