This word conjures up images of freedom and independence for many truckers. Being your own boss and being able to set your own hours are two of the most compelling reasons to become an independent trucker. But you’ll be your own boss, too. Truck driver contractors must be able to handle both business and driving because they are responsible for all of the company’s operations. To be an independent truck driver, you’ll need to get a permit. Check here for some tips to pass the CDL permit test. Here are a few things to keep in mind.
What does it mean to be a self-employed truck driver?
Owner-operators and lease contractors are close relatives of independent truckers, but there are some significant differences. You’ll buy or lease a vehicle from a third party, rather than the carrier you contract with, unlike a lease contractor. You will not, however, be operating under your own DOT authority, in contrast to an owner-operator. Most carriers take care of fuel taxes, permits, and load insurance, so you don’t have to worry about any of that.
An owner-operator or a trucking company may hire you as an independent truck driver under their DOT authority. In general, you’ll be able to pick and choose your own work assignments and set your own schedule. The responsibility of running your own business will fall to you.Fuel tax assist is a simple online application that assists Australian business owners in registering for fuel tax credit. Join the countless companies who have already registered with us for gasoline tax credits.
Important considerations to make before becoming a self-employed truck driver
The advantages and disadvantages of working as an independent trucker differ from those of any other position in the industry, including those of company employees, lease contractors, or owner-operators. To help you make an informed decision, here are some things to keep in mind.
The following are some of the advantages of working for oneself as a truck driver:
- Freedom. From local routes to long-haul hauls, you’re free of the red tape that owner-operators deal with and don’t have to answer to anyone but yourself.
- Equipment that you own. If you don’t like the truck your employer gives you, you won’t have to accept it. As long as you’re willing to pay a little extra, you’ll be able to get exactly what you want.
- It’s time for a vacation. When it comes to taking time off, company drivers must follow the rules. Taking time off as an independent contractor is completely up to you.
- Possibilities for financial gain. As an independent trucker, you have the potential to earn more money than you would as an employee of a company.
Responsibilities
Obviously, there is no such thing as a perfect life. Make sure you can handle all the responsibilities that come with being your own boss before making the decision to go it alone. These are just a few examples:
Authority
An independent trucker, as opposed to an owner-operator, usually works under the authority of the contract company. It would be even easier to find loads if you were running under your own power.
Insurance
As a contractor, you’ll be responsible for securing your own insurance. Truck insurance, health insurance, and even business insurance are all possibilities. Make sure to inquire about the carrier’s coverage of load insurance.
Paperwork
Fortunately, you’ll be able to deduct certain expenses from your taxable income because you’re an unincorporated business. To avoid this, you must keep meticulous records and receipts in order to take advantage of the available tax deductions. Keeping track of your mileage and hours worked is a must, as is adhering to all applicable federal, state, and local regulations.
A steady stream of money
Independent truckers are not as well-served, as they do not receive a guaranteed weekly wage from their employers. In order to cover any downturns, you’ll need to be an expert at cutting costs and saving money, as well as managing your financial resources.
Expenses
Independent truckers who own and operate their own equipment cannot rely on the company with which they have a contract for financial support. Ensure that you have enough cash on hand to pay for any costs that aren’t covered by your contracted carrier, as well as any payment delays that may arise.
Contracts
Owner-operators and trucking companies hire independent truck drivers on a per-job basis. Finding and selecting contracts, on the other hand, is entirely up to you. Contracts can be found in various places, including:
Load brokers
As a middleman, a load broker connects drivers with loads. Make sure you’re aware of the fees these companies charge so that you can factor them into your rates and budgets. There are a number of things you’ll need to be able to do before you can get a deal done.
Loads in excess
When local trucking companies have more work than their drivers can handle, you may be able to pick up overflow loads.
Risks
As an independent trucker, you’ll have to deal with two types of dangers: paperwork and financial. Tax deductions won’t be possible if you don’t have the proper records. Negotiating contracts and getting everything in writing will help ensure that you get paid what you’re owed. If you don’t have a good handle on your finances, you may find yourself in a situation where you can’t pay your bills.
