Though running your own business as an owner-operator could sound more pleasant than working in a company, as nowadays many people prefer to be self-employed. As an owner-operator, you can gain more and earn more, but the risks are higher too. However, if you still decide to run your own business, there is general advice which should help you with this.
Common cargos
Your risks and responsibility level will also depend on the cargo and weight of transportation. Firstly, we will explain the overall requirements for all types of cargo.
24 hours documentation
One of the most important things to learn and remember for each person who wants to start their own business as an owner-operator is to look after your documentation and prepare it approximately every 24 hours. What does this mean? This means that based on the hours of service rules, there’s a certain number of hours that truckers need to complete without taking a break, so you need to do paperwork for each 24 hours. This includes not just documentation, but also the bills of lading, itineraries, schedules, and trip records. In order to automatize the entire process you can also use electronic logging devices or artificial intelligence.
The importance of daily Driver Vehicle Inspection Report
The main goal of completing a driver vehicle inspection report on a daily basis is your personal safety. This can prevent many dangerous situations and technical breakdowns on the way. Usually, the process consists of the following steps: reviewing your last DVIR, taking notes of any defects, fixing the defects, and creating a new DVIR.
Insurance and authority
To start an owner-operator job, you should first get interstate driving authority issued by the Federal Motor Carrier Safety Administration. In order to get it you have to submit an OP-1 application and pay the fees, which amount to 300 dollars. Except that, you also have to provide proof of a minimum amount of bodily injury and property damage.
Drug and alcohol testing program
In order to prove your professional competency you also have to take part in a drug and alcohol testing program. This contribution allows you to fully operate as an owner-operator.
Records at International Fuel Tax Agreement
Last but not least is licensing your vehicle with the IFTA which stands for International Fuel Tax Agreement. This license enables you to submit one fuel tax return every quarter.
Hazardous cargo
Now it’s finally time to discuss the transportation features of hazardous cargo, which are one of four following categories:
- Ignitability
- Corrosivity
- Reactivity
- Toxicity
Get a USDOT Number
The first thing you have to do if you want to get any of the owner-operator jobs that provide transportation of hazardous cargo is get a USDOT Number, which stands for United States Department of Transportation Number. This one is vital if your vehicle weighs around 10,001 pounds or you are planning to transport hazardous cargo. Getting a USDOT Number is totally free, you don’t have to pay fees for it.
Hazardous Materials Safety Permit
The second thing you have to get is a Hazardous Materials Safety Permit. This is a program issued by FMCSA for those drivers who work with any type of hazardous materials. This permit is also necessary to get, but free.
Intrastate Operation
Another thing you need to remember is that if you provide your services intrastate, the rules of transportation are established by this state’s law. These rules can include such things as:
- Fuel use tax
- Vehicle registration
- Size/weight
- Vehicle identification
- Operating authority
Vehicle Licensing and Fuel Use Tax
And again, the last but not least are vehicle licensing and fuel use tax. According to the IFTA and IRP for a “qualified” vehicle, which means your vehicle has two axles and a gross vehicle weight that exceeds 26,000 pounds, you need to register your vehicle with the International Fuel Tax Agreement and the International Registration Plan.
Conclusion
Think about all the risks and make a decision. Though these regulations and requirements established for those working as owner-operators can be difficult to understand and remember, being self-employed and starting your own business could be a great possibility to improve your financial situation and become more independent.
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