To make real money as an owner-operator trucker, you need your own authority. Sure, you can offer your services to a leasing firm, and doing so is a great way for those with challenged credit to get their own rig. But obtaining an authority can help you to consistently earn higher rates – and it’s necessary if you ever want to hire other drivers and build a multi-truck enterprise.
What Is A Trucking Authority?
In the trucking world, trucking authority is permission granted by the Federal Motor Carriers Safety Administration (FMCSA) to transport goods for profit. There are two types of authority you can apply for: contract and common. A contract carrier hauls freight only for firms that it has a contractual agreement with. A common carrier, on the other hand, can hire itself out to any entity wishing to pay to have (legal) goods transported, whether or not a formal contractual relationship exists.
Should You Lease On or Get Your Own Authority?
Leasing on means that the trucker has signed a contract to haul for a transportation company. The company covers some of the expenses and most of the back-office work of the trucking company.
- It finds the loads and assigns them to a trucker.
- IFTA and IRP are frequently covered by the trucking company.*
- Billing is managed by a team, not the trucker.
- Insurance might be handled by the company.*
Understanding Leasing, Leasing On, and Lease Purchase
Leasing, Leasing on and Lease Purchase are not the same.
Leasing is renting a vehicle.
Leasing on is an owner-operator signing with a trucking company to haul their freight.
Lease Purchase is an agreement to lease a truck, with some of the monthly income put toward the purchase of the vehicle.*The contract with the transportation company will lay out the driver’s and the corporation’s responsibilities.
Neither is better, even if one is more profitable. Let’s compare them.
Factor 🚛 Lease On 🚛 Own Authority Choose your own loads 🟢 No 🟢 Yes Negotiate rates 🔴 No 🟢 Yes Build your own brand 🔴 No 🟢 Yes Hire drivers 🔴 No 🟢 Yes Manage IFTA, IRP & compliance 🟢 Carrier 🔴 You Buy commercial insurance 🟢 Carrier 🔴 You Startup investment 🟢 Lower 🔴 Higher Income potential 🟡 Moderate 🟢 Higher Business independence 🔴 Limited 🟢 Full Legend
- 🟢 = Advantage
- 🔴 = Responsibility or limitation
- 🟡 = Depends on your goals
Choose Leasing On if…
• You want predictable freight.
• You’re still learning the business.
• You aren’t ready for higher startup costs.Choose Your Own Authority if…
• You want maximum income potential.
• You want to negotiate rates.
• You eventually want multiple trucks.
• You’re comfortable managing compliance.What Does Having Your Own Authority Mean?
It enables you to remove the middleman and go directly to receivers, shippers, and load matching services to obtain freight. It’s more work and responsibility, but with bigger payoffs in return. Obtaining an authority is an essential step if you wish to maximize your profits as an owner-operator.
Without it, you will work for a transportation company or as a private carrier for a company. Those are fine options, but limited. Having your own authority means your horizons are far broader.
So how do you decide?
Are You Ready for Your Own Authority?
Here’s a quick quiz to see if you’re ready for your own trucking authority.
Give yourself one point for each “Yes.”
- □ I know my cost per mile.
- □ I have startup savings.
- □ I understand IFTA.
- □ I understand IRP.
- □ I have a business plan.
- □ I know where I’ll find freight.
- □ I have chosen insurance.
- □ I’m comfortable handling paperwork.
0–3: Keep preparing.
4–6: You’re getting close.
7–8: You’re probably ready to apply.
(Of course, this quiz is informational only.)
Decision Rule
Get your own authority when independence matters more than convenience.
Are You Ready to Apply?
The steps you must take to apply now for your trucking authority have changed with the introduction of Motus, the new FMCSA registration site.
If you’re ready to apply for your trucking authority, TruckingOffice has a white paper ready for you. The steps to take are laid out, including the new registration process. The potential problems in an application process and how to solve them are listed.
Read how to walk through the 5 phases to save money by filing your application yourself instead of hiring a company to do it.
And when you’re ready, TruckingOffice is here with trucking management software (TMS) and a basic ELD that’s compliant and helps you to file your most accurate IFTA report.
Not Ready Yet to Take the Step?
Deciding to go out on your own with your trucking authority isn’t one you decide quickly. If you’re not ready, there are other options.
- Stay leased on to a transportation company. Sometimes uncertainty comes from lack of experience or knowledge. Spending more time on the road with a guaranteed income is a valid choice.
- Start saving now. If you think that getting your own authority might be in the future, there’s nothing wrong with setting a few dollars aside now so you can get your own authority when you’re ready.
- Learn the back-office details by getting your own TMS. Tracking your loads, mileage, and fuel purchases gives you insight on the mechanics of running a business. Even if the company handles all those details for real, you’ll discover for yourself what happens off the road.
Writing a business plan may help you make a decision. The seven steps to writing a trucking business plan
- Executive summary: a high-level overview of your business objectives and mission.
- Company overview: your legal structure (LLC or sole proprietor) and operational focus.
- Marketing plan: the strategy for securing loads, identifying target shippers, and building broker relationships.
- Goals or milestones: realistic, time-bound targets for growth.
- Staffing Plan: a list of current personnel and expected future hiring needs, including dispatch, administrative support, and brokerage.
- Financial plan: Projected for insurance, fuel, maintenance, IFTA payments, and cash flow requirements.
Updated July, 2026
The Bottom Line
Getting your own trucking authority isn’t automatically the right choice.
If you value security, predictable freight, and fewer administrative responsibilities, leasing on may be the better option.
If you want greater income potential, business independence, and eventually to build your own fleet, getting your own authority is the next logical step.
The right decision isn’t about what other truckers choose.
It’s about which business model matches your goals.
I currently have an active authority that I would like to sell/transfer. Can anyone give me an idea of what my authority is worth?
Is the authority active? Are you currently doing business with it?
Hello, I am applying for my authority and I am not sure if I should add my wife on the app. I have an LLC with her as an owner. She’s mainly going to handle the dispatching and load booki g for me as the driver. Should I add her or should I not?
In the TruckingOffice TMS account you can have as many users as you want to at no additional charge. She would need to have access to the account so that she can enter the load information for invoicing and expense tracking.
Are you still looking to sell your authority?
Thank you for the information.
Any time. Let us know if you have any questions about running your own trucking business.
Great website, and insights. Do I need a to have Authority to just drive box trucks 26ft or less? Just registered as a new business.
Hello,
You would need to contact the FMCSA for specific regulation requirements.
https://www.fmcsa.dot.gov/
We are an invoicing system that helps you stay organized. Once you enter your trips into the system, there are 15 reports on the right side of the dashboard page that you can automatically generate from that. For instance, you can generate profit and loss reports, unit revenue, IFTA, driver settlements, create invoices, expenses and maintenance reports, etc.
We also have an ELD solution available if needed. https://www.truckingoffice.com/eld/
Feel free to start a 30 day free trial at https://www.truckingoffice.com/. There’s no obligation!
Are there grants available to help Women obtain Authority and start a business.
Hello,
You would need to contact the FMCSA for specific regulation requirements.
https://www.fmcsa.dot.gov/
We are an invoicing system that helps you stay organized. Once you enter your trips into the system, there are 15 reports on the right side of the dashboard page that you can automatically generate from that. For instance, you can generate profit and loss reports, unit revenue, IFTA, driver settlements, create invoices, expenses and maintenance reports, etc.
We also have an ELD solution available if needed. https://www.truckingoffice.com/eld/
Feel free to start a 30 day free trial at https://www.truckingoffice.com/. There’s no obligation!
We have our IFTA/IRP for the 48 states n were needing to add New Mexico n get cab card for NM how do we do that ??
I’m trying to set up a trucking business.
Once I get the authority as you outline, will I be able to drive with big companies like csrt etc, and will they do business with an independent contractor like me?
Thank you.
Hello,
You would need to contact the FMCSA for specific regulation requirements.
https://www.fmcsa.dot.gov/
We are an invoicing system that helps you stay organized. Once you enter your trips into the system, there are 15 reports on the right side of the dashboard page that you can automatically generate from that. For instance, you can generate profit and loss reports, unit revenue, IFTA, driver settlements, create invoices, expenses and maintenance reports, etc.
We also have an ELD solution available if needed. https://www.truckingoffice.com/eld/
Feel free to start a 30 day free trial at https://www.truckingoffice.com/. There’s no obligation!
Very informative, I live your work. Thanks for sharing such a nice post with us.
Can I sell or transfer my authority
Hello Stanley
Are you currently doing business with your own authority or did you sold it already?
Are you still looking to sell your authority?
Do you need your authority if you own a box trucking place.
Sorry. Do you need your own authority if you own a box trucking company