A tow truck business requires significant investment ranging from $150,000 to $1 million. In Texas, you need a valid CDL to drive a tow truck. Research thoroughly on specific licenses and permits required by Texas Department of Licensing and Regulation (TDLR) and Texas Department of Transportation (TxDOT). There are three different license types with distinct requirements: Consent Tow, Private Property Tow, and Incident Management Tow.
Getting Started
To start a successful towing business:
- Create a business plan
- Open a bank account
- Buy a tow truck
- Determine your target market
- Build your brand
- Market your services
- Prove your reliability
- Put safety first with policies, careful hiring, training drivers, pre-trip vehicle inspections, and a maintenance program.
The automobile towing industry market size is $10.3 billion. Demand for services stems from increasing vehicles on roads and need for emergency roadside assistance.
Licensing and Legal Considerations
What license do I need to start a towing company in Texas? To make money in a tow truck business, you need to keep your start-up costs low and ensure that you have proper licenses and permits to operate.
In order to operate a tow truck business in Texas, you will need to obtain the proper licenses: Consent Tow License, Private Property License, and Incident Management License. Make sure you meet all of the requirements before applying.
When starting a company in Texas, working with a business lawyer can help with the naming and registration process. Register your Texas towing company as one of the following legal entities:
- Sole Proprietorship
- Partnership
- Limited Liability Company
- Corporation
You must obtain a Tow Truck Operator’s Certificate from TDLR, completing a training program on towing laws, safety procedures, and customer service.
Call 800-803-9202 to expedite an emergency consent tow company license application, or apply online. Requirements include a valid driver’s license, passing a background check, and paying the $100 consent tow operator license fee. Keep your license and insurance renewed annually.
Industry Potential and Challenges
The automobile towing industry market size is $10.3 billion. Costs to start this business range from $150,000 to over $1 million, mostly for equipment. By starting a tow truck company, you can provide reliable and trusted service in your community. Demand for services comes from increasing vehicles and need for emergency roadside assistance.
To have a successful towing business:
- Create a business plan
- Identify target clients
- Choose consensual or non-consensual towing
- Buy equipment
- Obtain proper licenses and permits
- Build your brand
- Market services
- Implement policies, training, inspections, and maintenance
Log on to the TDLR website to learn about license and permit requirements. Choose a memorable company name and buy at least one tow truck. Identify a location to store towed vehicles. To expedite a consent tow license, call 800-803-9202 or apply online. Stay updated with annual renewals.