Lease-on, sometimes called “leasing to a carrier” or “signing on,” is how most new owner-operators get their first loads. Instead of registering your own FMCSA operating authority, you sign a written lease with a carrier that already holds one, and your truck runs under their MC and DOT numbers. The carrier answers for the freight. You answer for the driving.
Lease-on means an owner-operator signs a written agreement to haul freight under an established carrier’s operating authority: its FMCSA-issued MC and USDOT numbers, instead of filing for their own. The carrier, called the lessee, supplies the authority, the liability and cargo insurance, and often the loads. You supply the truck and the driving. Federal trucking law requires this to be a signed lease, not a handshake deal, because the carrier takes on legal responsibility for how that equipment runs on the road. In practice, lease-on lets a new owner-operator start hauling within days instead of the weeks it takes to register for MC authority, clear a new-entrant safety audit, and buy a standalone insurance policy. The carrier sets dispatch rules, keeps a cut of every load, and decides which brokers you can run for, so the trade-off is real. Most drivers treat lease-on as a stepping stone, a way to earn while they learn the business, before deciding whether to run under their own authority.
David White, Owner and Dispatcher, 11 years on the desk
How does lease-on actually work, step by step?
- You sign a written lease with the carrier. Federal law (49 CFR 376.11) requires this in writing. A verbal handshake doesn’t satisfy the rule, and it protects both sides if a dispute comes up later.
- Your loads move under the carrier’s authority. Dispatch, rate confirmations, and billing all run through their MC number, not yours.
- You get paid a percentage of the linehaul per load, after agreed deductions: insurance, ELD, permits, sometimes an escrow account.
- You still carry your own CDL, hours, and driving record under FMCSA rules. The authority is the carrier’s. The safety record on the road is yours.
What are the two common types of lease-on?
Owner-operator lease-on: you own or independently lease the truck, then lease your equipment and your driving to the carrier for a share of the revenue. Company lease, or lease-purchase: you drive a truck that belongs to the carrier, with part of your pay applied toward eventually owning it. Read the termination and escrow clauses in either one before you sign.
What do you keep, and what do you give up?
| Lease-on to a carrier | Your own MC/DOT authority | |
|---|---|---|
| Time to first load | Often days | Weeks to a couple of months |
| Who holds the authority | The carrier | You |
| Insurance | Carrier’s liability and cargo policy covers the freight | You buy your own policies |
| Revenue you keep | A negotiated share of the load | Nearly all of it, minus overhead |
| Who sets dispatch rules | The carrier | You |
What does a lease-on split look like in real numbers?
Say a dispatcher books you a load and the rate con shows $2,400 for a 950-mile run, on a lease that pays you 75% of linehaul. This is illustrative math, not a quote:
- Rate con total: $2,400
- Your 75% share: $1,800
- Carrier’s 25%: $600. It covers their authority, insurance, and back office.
That $1,800 is gross, before your own costs. Fuel on a 950-mile run might run $450 to $550 depending on your truck and diesel prices, so the load nets somewhere around $1,250 to $1,350 before tolls, maintenance, and your own insurance. Run the same load at a 70% split instead of 75%, and you lose $120 off the top. That’s exactly why the split percentage belongs in writing before your first load, not agreed to on a phone call.
What’s the edge case most drivers get wrong about lease-on?
Drivers assume the carrier’s insurance covers the truck itself, the way a personal policy would. It usually doesn’t. Federal leasing rules require the lease to state who carries “other” coverage, like bobtail or non-trucking liability and physical damage to the equipment, and that responsibility often falls on the driver even though the carrier’s liability and cargo insurance covers the freight in transit. 49 CFR 376.12 spells this out, along with the escrow rule: if your lease requires an escrow deposit, the carrier cannot hold it more than 45 days after you terminate. Check both clauses before you sign.
Whether you’re leased on to a carrier or running your own numbers, Fortuna helps keep your truck loaded and your miles paid.
Common questions
Do I need my own MC number to lease-on?
No, that’s the entire point. When you lease on, your truck and your driving operate under the carrier’s existing FMCSA authority, so you can start hauling without filing for your own MC number, insurance policy, or new-entrant safety audit. Most drivers use lease-on for exactly that reason: to get moving faster.
What happens to my escrow money if I leave the lease?
If your lease agreement requires an escrow deposit, federal rule 49 CFR 376.12 caps how long the carrier can hold it: no more than 45 days after the lease ends. The lease itself has to spell out the amount, what it can be applied to, and how it’s accounted for. Read that section before you sign.
What’s the difference between lease-on and lease-purchase?
Lease-on usually means you already own or independently lease your truck, and you’re leasing your equipment and driving to a carrier for a cut of each load. Lease-purchase means you’re driving the carrier’s truck, with part of your pay going toward buying it. The paperwork and the risk are different, so read the ownership terms closely.