Two ways to run your own truck
If you own a truck, you can haul freight one of two ways: under your own operating authority (your own MC number), or leased onto a carrier that already has one. Either way it's your truck. What changes is whose name the freight moves under, and who carries the responsibilities that come with that.
What leasing on means
Under a lease, your truck runs on the carrier's authority for as long as the lease lasts. Federal leasing rules require a written agreement that says how you're paid, what gets charged back to you, who provides insurance and how the lease ends.
The carrier handles broker relationships, billing and much of the compliance work. You drive, maintain the truck and keep your logs.
When leasing on makes sense
Leasing on is often the faster way to start earning. It tends to fit if:
- You don't have authority yet, or yours isn't active
- Your MC is new and brokers won't book you without some history
- You'd rather not manage insurance filings, IFTA and permits yourself yet
- You want to learn the business side before taking it on
When your own authority makes sense
Your own authority means you keep the full rate, choose every broker and build a business in your own name. You also take on your own insurance, IFTA, IRP, UCR, drug testing and a safety audit in your first year. Many drivers lease on first and move to their own authority once they're ready.
Questions to ask before you sign a lease
Read the agreement line by line, and ask:
- How and when am I paid, and what's deducted?
- Who pays for insurance, fuel, permits and tolls?
- Am I free to turn down a load?
- How much notice do I give to end the lease, and what happens to escrow?
General information, not legal or tax advice. Rules change and depend on your situation. Check with FMCSA, the IRS or your state, or call us.
