# Towing Company License and Permit Research Checklist

Which licenses and permits to research for a towing company: state, county and city agencies to check, and questions to ask before opening.

Source page: https://cheapcheapwebsites.com/small-business-guides/industries/towing/license-and-permit-checklist/
Updated: October 6, 2026

Towing rules are often local: city and county towing licenses, rate caps for non-consent tows, police rotation requirements, private property towing rules with signage and notice requirements, storage lot standards and release procedures, plus state commercial vehicle rules and FMCSA requirements for some trucks.

## Who to ask and what to ask

| Office | Question |
| City licensing | Do I need a towing license, and what are the non-consent rate rules? |
| Police or sheriff | How do I join the rotation list? |
| County | Are there storage lot standards? |
| State DOT or DMV | What commercial vehicle rules apply? |
| FMCSA | Do I need an USDOT number for my trucks? |
| Insurance agent | What coverage do rotation lists require? |

## Private property towing basics

Many places require a written contract with the property owner, specific signs at entrances, notice to police after a tow, and specific release hours and payment options. Follow local rules exactly; violations often lead to fines or license loss.

## Mistakes

- Towing from private property without required signs
- Refusing card payments where required
- Missing police notice

## Worked example: preparing for a rotation list

Ray's city police department keeps a rotation list for non-consent tows. Its requirements include a city towing license, minimum insurance limits, a storage lot within city limits with fencing, lighting and posted release hours, response time standards, and specific truck types. Ray prepares documentation of each item, invites the inspection of his lot and trucks, and trains drivers on scene safety and police procedures. Once approved, he keeps records of response times because rotation agencies review performance.

## Records to keep

- Tow authorizations and police requests
- Property owner contracts and sign photos
- Vehicle photos and condition notes
- Release records and payment receipts
- Notices sent to owners as required

## Rules owners often miss

Many towing ordinances require specific receipts, notices to owners and records of each non-consent tow. Keep these organized and retained for the period required.

## What to research

| Requirement | Usually handled by |
| Towing license or permit | State or city towing regulator (varies) |
| USDOT number if required | FMCSA |
| Non-consent towing rules and rate caps | State and city rules |
| Storage facility licensing | State or local |
| Insurance requirements | Regulators and clients |

## Free tools

Renewal tracker

## Common questions

### Are tow rates regulated?

Non-consent towing rates are often capped locally.

### Do I need an USDOT number?

Depends on truck weight and operation.

### What signs are required for private property?

Local rules specify; check before towing.

### What are release hours?

Times when owners can retrieve vehicles; often set by law.

### Can private property towing be done anytime?

Usually only under a written contract with the property owner and with proper signage and notice. Follow local rules exactly.

## Sources

- SBA: Apply for licenses and permits: https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits
- FMCSA: Registration: https://www.fmcsa.dot.gov/registration
- FMCSA: Hours of service: https://www.fmcsa.dot.gov/regulations/hours-of-service

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