Company Driver vs Owner-Operator: Which Path Fits Your Goals
The trucking industry has an ongoing debate: Do you take the path of a company driver, or do you become an owner-operator? When you compare company drivers and owner-operators, owner-operator wages can look huge next to company driver pay, but remember: gross profit isn’t the same as net profit.
In truth, whether you choose to be a company driver or an owner-operator depends on the path that fits your goals best. At Trucker Social, we’re going to examine both sides, so you can clearly see which one would fit your personal goals better.
Advantages and Disadvantages of Being an Owner-Operator
An owner-operator runs their semi truck as a business. They do not work for anyone, and they earn revenue rather than a wage. This can come with its own stresses, like you need to find your own freight, manage your operational costs, and keep an eye on your equipment management, compliance, and taxes.
You can set your own freight schedules and determine your own routes. You also get more say in how much home time you get. If you have a family, this can be a good route if you want to be home to see your kids for special events. You have more flexibility, and everything depends more on you.
With everything said, there is a hard reality to being an owner-operator that company drivers don’t experience. For example, you need to pay your own insurance, your own maintenance, your own operating costs, and your own equipment.
You will need to register your own business, file for trucking authority, get a USDOT number, and invest time in finding a reliable source of clients. You will also feel more exposure to market swings and regulatory changes than company drivers.
For company drivers, when the regulations change, the worst you’ll experience is some hassle filling out new paperwork or whatever. For an owner-operator, when the regulations change, it can literally change how much you earn the next week or next month.
Company Driver vs Owner Operator: Getting Freight as an Owner-Operator
You can drum up new business in a couple of different ways. Places to look include:
Digital load boards: This saves time, and you can reduce the amount of empty miles where you have an empty unpaid return trip.
Websites where shippers post jobs: Great choices for places like this include getloaded.com, dat.com, and truckstop.com.
Freight brokers: Having a freight broker means that they will connect you with a business that needs goods shipped. They handle the time spent calling, so you save time.
How Much Do You Make as an Owner-Operator?
In the owner operator vs driver pay, the gross annual income for an owner-operator sits at around $228,575 on average. However, how much you earn can span anywhere from $33,500 to $399,000. Owner-operators average around $4,395 per week or $17,580 per month. One thing you have to remember, however, is that not all of this is money you put in your pocket.
Actual take-home pay is going to vary heavily depending on your operating expenses. You’ll also be subject to things outside of your control, such as diesel costs, equipment maintenance, commercial insurance, and tax obligations.
You also need to be realistic in developing a business plan because profits won’t automatically rain down on you. You have to put in the time and be patient. You may also want to set up an emergency account for crises and possible downtime.
As an owner-operator in trucking, you can also hire other truckers to have them work for you while you make money off more than your own labor. If you’re comparing company driver vs owner operator, a company driver can’t do that.
Advantages and Disadvantages of Company Drivers
The company driver serves in the same role as an employee, so you don’t run your own business. There are advantages and disadvantages. For one thing, you receive more stable pay than if you worked as an owner-operator. The company absorbs all the unpredictable things about running a business.
You don’t have to worry about paying $10,000 to $80,000 because your engine blew out. It’s the responsibility of the company to replace it. You also don’t have to have money to get started.
All the stress and hassle of being an owner-operator is taken away from you as a company driver. They will handle your insurance, maintenance, permits, and issue you a W-2 at the end of the tax year.
How much you earn as a company driver depends on your experience. More experienced drivers earn more than someone who just graduated trucking school. Your biggest responsibility as a company driver is to get the freight to its destination on time.
The biggest downside is that no matter how much you earn, you will eventually hit a ceiling. If you don’t know how to run a business, however, you can wind up losing money as an owner-operator, whereas you don’t need to worry about that as a company driver.
How Much Do You Make as a Company Driver?
Company drivers earn an average of between $54,000 and $80,000 per year. Depending on the company, you also get medical, dental, and 401k coverage. Being a company driver is especially recommended if you’re just starting out because you won’t feel overwhelmed. You just have to haul the freight from Point A to Point B and get paid. The company handles everything else, which can be a huge advantage.
Another downside of a company driver over an owner-operator is that owner-operators have tons of tax deductions that they can draw on come tax season. When you work as a company driver, you will have few tax deductions that you can draw on.
Check out the Jobs Available on Trucker Social
Now that you understand the differences between being a company driver vs owner operator, why not browse both job categories at Trucker Social. You can connect with other truckers, speak with owner-operators and company drivers to find the path that would be best suited for your unique circumstances.
