A tow truck company could be just the business to get into if you have access to a substantial amount of capital or an eager investor. Such companies are known to fair well even in the toughest of economic climates. Often times tow truck companies come in for praise when coming to the assistance of a stranded roadside driver at odd hours of the day, but at the same time they do face the disparaging remarks when recruited to move vehicles that have been illegally parked. While a tow truck company would initially require a substantial capital investment, its steady long term returns could replenish the initial spending. If you’re considering delving into such an industry then read on to learn what you should know before you set up such a company.
Read up on the required paper work
Before setting up any company – do your research on the type of company your hoping to set up. Filling in the appropriate paper work for state approval is crucial to the value and respectability factor of setting up an establishment. Whether it is in the business of palm beach towing or otherwise, it is generally accepted that structuring a company as a limited liability firm offers greater protection as a pose to a sole proprietorship. The legal framework behind a limited liability corporation offers greater security for the assets of the business.
Looking into specific licensing agreements
Once your business is registered, check with official government regulators in your state if the tow truck service company requires a specific license or if employees require specific licenses in order to carry out your business. The jurisdiction can vary from state to state and country to country with some municipalities requiring firms to have specific permits.
Research on building a fleet
Owing to the risks involved in the moving of damaged vehicles or towing machinery, the company would also require a liability insurance policy. In addition, the company would also require different types of vehicles to deal with the complexity of requirements. Whether it’s a low truck, a rear hook or a flat bed each vehicle will require insurance. However, depending on the type of work you hope to engage in will determine the type of vehicle for purchase. Flat bed vehicles are the preferred option as even the most severely damaged vehicle could be accommodated. As the company expands you can decide to purchase additional vehicles.
Secure a yard for your operations
Many towing companies whether they realize it or not will be required to hold vehicles. For instance should an owner of a property want an illegally parked vehicle towed, then the vehicle would have to be held till it can be released. In order to hold such vehicles it would be best to look at acquiring a secure holding yard. For more information, please click here.