Towing is a crucial service that assists in getting damaged or broken-down vehicles off the road. Understanding Illinois’ laws and criteria is important if you’re thinking about starting a tow truck business there. We’ll walk you through the procedures in this post so that you can launch a tow truck business in Illinois.
Getting a commercial driver’s license (CDL) is the first step in starting a tow truck business. To drive a commercial vehicle weighing more than 26,000 pounds or to tow a vehicle weighing more than 10,000 pounds, you need a CDL. To get a CDL, you must pass both a written test and a driving test.
Step 2: File a Business Registration Form Your tow truck business must then be registered with the Illinois Secretary of State’s office. You must select a business name, provide the required documents, and pay the registration price. Additionally, you might need to apply for a tax ID number and get any appropriate licenses or permits.
You’ll need to buy a tow truck once you’ve earned your CDL and registered your firm. In comparison to old trucks, which can cost between $10,000 and $50,000, new tow trucks can cost between $70,000 and $100,000. Additionally, you’ll need to buy auto insurance, which can run you anywhere from $3,000 to $5,000 annually.
Obtaining Insurance is Step 4 You’ll need liability insurance in addition to tow truck insurance to safeguard your company in the event of an accident. Depending on the size of your company, liability insurance might cost between $3,000 and $5,000 annually.
Depending on the vehicle’s weight, Illinois tow truck registration fees change. The registration price is $201 for tow trucks weighing between 8,001 and 12,000 pounds. The registration price is $301 for tow trucks weighing between 12,001 and 16,000 pounds. The registration price is $501 for tow trucks weighing between 16,001 and 26,000 pounds.
In Illinois, tow truck drivers are required to abide by severe towing regulations. For instance, before towing a vehicle, tow truck employees need the owner’s permission. Additionally, after towing a vehicle, they have 30 minutes to alert the neighborhood police department. Fines and other legal repercussions may arise from breaking these laws.
The quantity of calls you receive, the size of your fleet, and your operating expenses are just a few of the variables that affect a tow truck company’s profitability. The average tow truck company can make between $30,000 and $100,000 annually, according to industry figures.
Is purchasing a tow truck a wise financial decision? If you’re ready to put in the time and effort to establish a profitable business, purchasing a tow truck can be a wise investment. However, before making a purchase, it’s crucial to comprehend the prices and hazards associated with it. A sizable financial commitment is needed to start a tow truck business, and it may take some time to attract clients and turn a profit.
In conclusion, it takes careful preparation, registration, and adherence to state requirements to start a tow truck business in Illinois. The procedures discussed in this article can help you launch your company and begin offering a useful service to your neighborhood.