How to Start a Small Light Duty Towing Business


The tow truck business is incredibly profitable, with the industry bringing in an estimated eight billion dollars in revenue in 2020 alone. If you’re considering starting a small light duty towing business, the YouTube video “How to Start a Towing Company” gives tips that could be followed to establish such a business successfully.

The first step is to create a business plan. A business plan helps map out specifics regarding a business’s operations and unknowns that could affect it.

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When drafting a business plan, ensure it’s comprehensive and covers areas such as your target market, operating costs, worker salaries, and the price you plan on charging.

Next, create a legal entity for your new light duty towing business. Common business entities include sole proprietorship, limited liability company, partnership, and corporation. You’ll also need to register your new business for taxes and open a bank account/credit card for the business. The former helps you not to default on tax by making filing easy, and the latter protects your assets if your business is sued.

Other essential tips include obtaining permits, getting your business insured, and defining your brand. Ensure you direct most of your resources towards social media promotion and search engine optimization to improve your brand visibility.