How To Start A Towing Service

You will need a tow truck license to operate a towing company.

Depending on the needs of your community, a towing company can be a assisting business organisation venture. Starting out with a single truck, you may find it best to starting time with specific customers, like mechanics, machine dealerships, local authorities agencies and apartment management companies. As your concern expands, and so tin your range of customers and your armada of trucks.

Create a Business organisation Plan
Create a business programme to outline each stage of concern development for a towing company. Write a business concern description, including the types of towing services you lot want to provide customers, in the first section. Types of towing services include emergency towing, dealership towing and commercial retail towing.
List startup costs, equipment costs, labor costs, insurance costs and towing license costs in the second section. In the tertiary section, create a marketing plan that includes ways to concenter potential customers. Draw the roles and duties of management and employees in the fourth department.
Utilise for Licenses and Permits
Apply for a towing license by contacting your local towing and recovery lath or department of motor vehicles. Register your business with the secretary of state's office and the county clerk's office that oversees the county where you program to operate the towing company. Utilize to the Internal Revenue Service for an Employer Identification Number (see Resources). Use this number when filing all land and federal tax return documents.
Buy Concern Insurance
Purchase business insurance, such equally general liability, property, motorcar and workers' bounty insurance, from a licensed insurance provider. General liability and property insurance help pay for costs associated with lawsuits, damage to towing equipment or a legal settlement. Your country or canton may require that you lot purchase a surety bond to assist cover additional costs associated with a lawsuit or settlement. Surety bonds are also used to go on business organization owners honest when providing services to customers.
Purchase Vehicles and Equipment
Purchase towing vehicles and equipment from local truck and automobile supply stores or online. Visit used automobile parts stores or junkyards to buy items at a low price. Purchase reckoner software to maintain accurate towing records, bookkeeping and invoicing.
Obtain a Location
Charter or purchase a parking lot or state to park vehicles after towing. Contact a commercial existent estate amanuensis to detect a location that is large enough to park a variety of vehicles.
Market Your Business
Market your services to businesses in your customs. Nourish business-networking functions and motorcar trade shows or visit local businesses in person. Types of businesses to contact include car dealerships, flat direction companies, small-business owners and local government agencies.

Things You lot Volition Demand

Business program
Business organisation insurance
Surety bond
Tow truck license
Tow truck and towing equipment
Lot to stow vehicles

Tip

To protect concern avails, purchase enough business organization insurance to adequately cover the costs of legal fees.

Alert

Obtaining a towing license may be hard depending on the number of businesses applying. Many areas limit the number of licenses granted, to prevent too many towing businesses in i area. If you cannot obtain a towing license, you may exist able to purchase an existing license from some other towing visitor.