If you truly love this calling and you play your cards right, having a towing company can indeed be a lucrative business.
When you open a towing company, you are able to:
- Earn money from your towing services
- Collect fees for storing impounded vehicles
- Collect fees from repair shops for bringing broken vehicles to their doorstep
But before you start making detailed business plans for your future towing company, you must first know how to get a tow truck license, and this process may vary by both the state and the city you live in. The tricky part is that many cities in America limit the overall number of towing licenses in order to maintain the optimal number of towing companies and avoid having too many competing businesses.
Although the procedure for getting a tow truck license is quite similar in most municipalities across the USA, we at Phoenix Towing Service recommend that you inform yourself about the details and particulars for the municipality in which you are planning to establish your towing company.
How To Get A Tow Truck License In 7 Easy Steps
- Inform Yourself Thoroughly
Go to your local municipality office and obtain all the necessary info on the procedures. You can check online or go to the government offices, while you should also make sure you find out if you need to get a business license as well.
- Make Sure You Have All The Necessary Items
These items typically include:
- start-up capital or bonds
- LICENSED tow trucks (explained in detail below)
- copies of driving records
- photo ID
- Get All The Paperwork You Need
Typically you will need:
- a commercial driver’s license
- your driving record (a certified copy)
- a start-up capital bond (usually around $30,000)
- a tow truck driver endorsement
There’s a possibility you will also need:
- business incorporation papers
- insurance proof
- business liability insurance proof
- Obtain A Tow Truck Driver’s License
This might feel like stating the obvious, but you (and all your tow truck drivers) must possess a tow truck driver’s license.
- Tow Trucks Inspection
All your tow trucks must be inspected by a certified local (or state) law enforcement officer.
- Finnish Up The Paperwork
In order to obtain your towing business license, you will typically have to be fingerprinted and have your ID photo taken, while you will also have to present all the necessary paperwork and fill out the application form.
- Take Care Of All The Fees
Simply pay all the necessary fees and you’re good to go!
NOTE: Some fees are paid annually. Also, make sure you take care of the insurance for your towing business, and do it properly. If necessary, hire a competent lawyer who will go over all your incorporation and licensing papers. It is always best to be on the safe side.
Tow Truck Vehicle License
In order to be able to do any type of professional towing, your tow truck needs to have a license as well. In order for your tow truck to become a “licensed tow truck,” you will need to fill out the Tow Truck License Application form (also known as the F4644 form), while you will also have to pay a tow truck license fee for each vehicle you possess.
All your licensed tow trucks must have the following markings visible on both sides:
- name, telephone number and business address of the person holding the license (or permit)
- classification of the tow truck
- tow truck number
- tow truck’s license (or permit) number
You must also take into account that any licensed tow truck you have within your towing company must be maintained regularly as required under the Transport Operations (Road Use Management-Vehicle Standards and Safety) Regulation 2010.
Should you have further questions about how to get a tow truck license, or you are interested in the services we provide, feel free to contact us at phoenixtowingservice.com. Phoenix Towing – help’s on the way!