Question on Towing business

Tattooo · October 21, 2015

I hope the numbers work for you .......

ember1205 · October 21, 2015

Whether there are items in your area that meet certain minimum numbers or not may not matter. It's possible that you may need to be bonded in order to get your DOT numbers or something like that. The reason that your average person doesn't take this on as a commercial "side job" is because setting it all up isn't necessarily trivial.

Hopefully, you can make it work.

nards444 · October 21, 2015

Whether there are items in your area that meet certain minimum numbers or not may not matter. It's possible that you may need to be bonded in order to get your DOT numbers or something like that. The reason that your average person doesn't take this on as a commercial "side job" is because setting it all up isn't necessarily trivial.

Hopefully, you can make it work.

Yeah its possible, and the numbers may not work that's why I am reaching out now. Like I said insured and bonded would be a must, I would not operate with out it, in that case you can be insured and bonded without having DOT, but not the other way around. Personally I don't think I would take the risk of not being DOT, the penalties wouldn't be worth it. But if theres grey area such as being able to have GCVW of 10k or less, I mean figure most diesels weigh 7k, that leaves around 3k to tow, which is probably 50% of the stuff Im looking at hauling.

BlackZ71Silverado · October 25, 2015

To be legit your gonna have commercial insurance & registration etc which is more expensive ... So make sure your sure youll have enough work to at least cover that

Exactly.

You will need to make sure you are totally covered insurance wise in case something were to happen, and to cover your own ass and protect yourself.

There are several DOT steps that need to be done to properly set up a towing business. Take the proper steps, get all of the insurance you need and then go from there. It's going to cost you some money to start but it will pay for it in no time as long as you are sure there is a customer base in your area.

JrocK817 · October 29, 2015

I'm going through the process of putting a business on the road that requires me to pull a trailer daily. Different business, same concept I suppose.

Started my LLC for around $300. Might cost more or less depending on what your attorney charges. The amount of expenses you can write off under an LLC or Corp. is worth it alone..

The USDOT number will cost you around $300 initially, and $250 per year to maintain. You will need a physical done yearly as well, by a doctor who is approved to do so for commissioned drivers. I assume most insurance policies cover part or all of it as a yearly visit. I also assume most doctors can do the physical, not positive though.

The commercial insurance isn't really too bad. I was quoted about $1200/year on a million dollar general liability policy. You might not have to get that coverage but you will have to get commercial auto insurance. That I was quoted about $800 for the year with around half a million total coverage.

I haven't crossed the commercial truck registration bridge yet, cant help there yet

Babyhauler · November 7, 2015

It just don't add up!

I looked into doing this for income during the winter when brush clearing and mowing slows down. No snow to plow down here. 1st call to the insurance company ended this idea quickly. $7,000.00 a year full coverage "commercial" hauling policy. $1 million liability and coverage for whatever you are hauling. Plus DOT #s and inspections, physical (no problem there) and other trucking co requirements.

My 2500HD Duramax, 4 trailers, tractor and mowers are already owned by my LLC to reduce personal liability. I have a $2 million General liability policy for the LLC. $1,000. a year. All this for a guy trying to make a living with a tractor, bush hog and a few mowers. Oh, and my bad ass Brush Blazer brush cutter. You Tube it.

I got bumped into the commercial requirements because I wanted a safer, more capable trailer to haul my 6,000 lb tractor. 10K trailer can haul about 7,500 lbs. It did not like doing it everyday so I bought a 12k gooseneck and boom! I am suddenly a commercial hauler since I wanted a safer trailer. I also spent another $200. to get G70 chains, hooks, D-rings and tie-downs for DOT and liability.

So, you have a good idea and I am all for scratching and hustling, but the extra $600 plus a month on top of my other commercial expenses was not worth it for me. The D.O.T. does not want "part timers" out there.

Babyhauler

j-ten-ner · November 7, 2015

...The D.O.T. does not want "part timers" out there.

Babyhauler

It depends on the point of view.

I know where you're coming from, but there has to be a line somewhere.

That leaves you with the decision to stay small or go big.

so long

j-ten-ner

Babyhauler · November 8, 2015

They do not want people that do not know or will not follow the rules when hauling things. You have seen them. Truck overloaded with the bumper dragging and only 3 wheels on the trailer.

You can't stay too small if you have to cover $700. a month in insurance. Plus fuel & tires & tags & trying to put a little scratch in your pocket. I wish it was worth it because I think I could help my cash flow with some hauling on the side.

You could be an Uber driver, but I am sure there is some liability with that!

Like I said, "It just don't add up!" Sorry for the bad news about your good idea.

Babyhauler