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Tow Operator Startup Cheat Sheet

Everything to launch a 1-truck tow business — on one page. LLC → USDOT → insurance stack → motor club onboarding → first paid call.

1. Legal Foundation (Week 1)

  • Form LLC in your state ($50–$500 filing fee)
  • Pull EIN from IRS.gov (free, 10 minutes)
  • Register USDOT number at safer.fmcsa.dot.gov (free)
  • Register MC authority ($300) if towing interstate for hire
  • Get BOC-3 process agent filing ($50)
  • Get DOT medical card from certified examiner

2. Insurance Stack (Weeks 2–3)

  • Auto liability ($1M CSL minimum — motor clubs require)
  • On-hook / cargo coverage ($50k–$100k limit)
  • Garagekeepers coverage ($60k–$100k)
  • Wrecker equipment coverage
  • Workers comp (if hiring)
  • Get 3+ quotes: Progressive, Great West Casualty, National Independent Truckers
  • Budget: $7,500–$14,000/yr (20–30% down payment to bind)

3. First Truck (Weeks 3–4)

  • Used single-line wheel-lift wrecker: $15k–$25k (recommended first truck)
  • OR used light-duty rollback flatbed: $25k–$45k
  • Year 2012–2019 sweet spot
  • Get third-party pre-purchase inspection
  • Install: wheel-lift, dollies, straps, chains, safety cones, dashcam
  • Add USDOT number decal to both doors (federal requirement)

4. Motor Club Applications (Weeks 4–8)

  • Urgent.ly — apply first (1–3 week onboarding, easiest)
  • Honk — apply second (1–2 week onboarding)
  • Agero — apply third (4–8 week vetting)
  • Allstate Roadside — apply fourth (3–6 weeks)
  • AAA — apply last (6–12 week rigorous vetting)
  • Add: Quest, Nation Safe Drivers, Copart, IAA after month 3

5. Dispatch Software (Week 5)

  • Towbook starter tier ($49/mo) — default choice
  • Set up motor club integrations one by one as approvals land
  • Configure QuickBooks export for accounting
  • Set up dedicated phone via Twilio or Google Voice

6. First Paid Calls (Weeks 8–12)

  • Launch Google Business Profile + Local Services Ads for cash calls
  • Prospect 20 apartment complexes for PPI contracts (use PM outreach scripts)
  • Answer every motor club call within 30 seconds (scorecard critical)
  • Push ETAs conservatively — under-promise, over-deliver
  • Photo everything: pre-hookup, hookup, drop location

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