To remove the cap from your income in the trucking business, one of the best things you can do is become an owner-operator. Rather than depend on a salary, you can essentially set the pace of your work, take the loads that you think are most profitable, and work as much as you think you can handle.
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Why Should You Get an Authority?
But if you really want to up the ante, you might want to consider getting your own authority. Of course, you can always offer your services to a leasing company, especially if your credit isn’t as good as it could be. Having an authority, however, can help you earn more per mile on a consistent basis — about $2 to $3 per mile, on average. And if you ever want to hire other truck drivers to build a company after applying for owner-operator trucking jobs, you’ll need to have one.
What Is an Authority?
An authority essentially means you’ve got permission from the Federal Motor Carriers Safety Administration (FMCSA) to make money from transporting goods. Having your own authority means that the middleman is taken out of the equation, and allows you to go straight to shippers, receivers, and load-matching services to get freight to haul. While it does involve more work, it also allows you to realize heftier profits.
How Do I Get an Authority?
Before getting an authority, you’ve got to establish yourself as a business first, then get an employer identification number from the IRS. You’ll then need to fill out and send in an application form to obtain an authority, and apply for both liability and cargo insurance, if the latter applies to your situation.
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Once you start running your business under your own authority for a while, you’ll quickly see that along with the hard work comes great profits! There is so much opportunity that waits in the world of truck driving as an owner-operator — all you need to do is take that next step!