• Towing services help clear roads of disabled vehicles.Jeep and car after the road accident. image by Dragan Trifunovic from Fotolia.com
  
  Those who are experiencing car trouble might seek the assistance of a towing service. Law enforcement agencies also rely upon towing services to tow vehicles that are illegally parked, disabled as a result of an accident or other situations. Before providing towing services, the company must meet certain state business requirements. Towing companies can provide contract services for large companies or they can provide services for individuals. Those who provide services for individuals might face more expensive license fees. After becoming licensed, many towing services provide convenient 24-hour services.
  
  

Insurance

• The business owner must acquire insurance that covers damage that might occur to the truck and drivers. The owner must also submit proof of insurance that covers damage to a customer's car caused in the event an accident occurs while the vehicle is being towed. These insurance documents must be carried in the tow truck at all times.
  
  

Background Check

• The business must submit proof of driving records for all the drivers. The record must be clean and clear of major driving offenses, such as a driving while intoxicated (DWI). Employees must also pass a criminal background check that includes a drug test. Criminal convictions can result in denial of a business license.
  
  

License

• Before a towing service can tow a vehicle the business owner must acquire a towing license in the state where the business will operate. Business license requirements vary according to each state. Most states require the business owner to file paperwork with the clerk of court's office and pay a fee. According to Entrepreneur.com, towing license fees can cost as much as $200,000 to provide public services because these types of businesses have strict requirements and regulations. Many towing business owners elect to subcontract their services only to businesses, such as car dealers because the license fees are less expensive.
  
  

Equipment

• Many states, such as California require towing companies use a truck that has a frame that can carry at least one ton. In addition, the truck must display the company's name and address. Trucks must also contain emergency equipment such as red flares, warning signs and other equipment and markers that should be used when the truck is preparing to tow a vehicle. Employees must also be equipped with two-way radios that help them maintain communication.