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Road Map › Phase 1 — Getting Started › Lease On vs. Own Authority
Leasing on means operating under another motor carrier's authority. Operating under your own authority means registering your business as a motor carrier and managing your own compliance requirements.
Leasing on generally allows you to get started faster. The carrier handles many compliance responsibilities and may provide freight. However, you may have less control over customers and rates, and the carrier typically retains a percentage of the revenue.
Operating under your own authority gives you greater control over customers, rates, and business decisions. However, startup costs, insurance expenses, and compliance responsibilities are generally higher.
Compare operating costs, carrier deductions, freight availability, customer relationships, and how much control you want over your business.
Carefully review the lease agreement, including deductions, chargebacks, and escrow requirements. Don't make your decision based on gross revenue alone.
Your decision will directly affect your startup costs and financial requirements. Calculate your expenses based on the path you choose.
Never sign a lease agreement without thoroughly reviewing its terms, especially those concerning deductions, escrow, and final settlements.
Organize your compliance requirements and deadlines in one place.
Open Compliance Tracker