How Do You Start a Towing Business?


Quick Answer

To start a towing business, contact the local government, arrange for commercial driver's license testing, and purchase the necessary business assets. Initial capital is also necessary to fund regular business operations.

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Full Answer

Local governments have certain requirements for towing businesses. These requirements may relate to permits, licenses and boundary restrictions. When looking to start a towing business, contact a local government official to obtain details of the related requirements. In most cases, the necessary permits and licenses will not be free. In addition, you may need to pass an examination or complete an application to become eligible for a particular license or permit.

One permit that is common among all towing business owners is a commercial driver's license. This license enables a person to operate a large motor vehicle that falls into Class A, Class B or Class C. You cannot begin servicing a towing business until the required examination to obtain this license is passed. Tow truck insurance must also be purchased to transport vehicles and protect against any liability that may arise during business operations. Once all the relevant licenses and insurance are obtained, a tow truck needs to be purchased. You can then begin a marketing campaign to find potential customers.

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