Towing Permits & Licenses in Fort Worth, Texas

San Antonio Code of Ordinances Chapter 17 regulates towing.

Not legally mandatory for all employers under Texas Labor Code § 406.001, but highly encouraged. Employers who do not carry coverage must file a "Nonsubscription Notice" with TDI and post required notices. Over 95% of Texas employers elect coverage.

Minimum liability coverage required: $300,000 for bodily injury per accident (combined single limit). Applies to all vehicles used in commerce. Required for registration under Texas Transportation Code § 641.011.

Not mandated by Texas state law, but strongly recommended for protection against third-party injury or property damage claims. Often required by commercial landlords or contracts.

Required for all Texas LLCs. Online filing via SOSDirect. Renewal via periodic reports.

Filed with Comptroller for franchise tax purposes but tracked by SOS. Applies to all LLCs.

All LLCs doing business in Texas must register for franchise tax. No tax if revenue under $2.47M (2024 threshold).

Statewide filing recommended for LLCs operating statewide; county for local. Towing businesses often use DBAs.

Required for non-consent towing operators. Must also register with local law enforcement. Effective rules as of 2023.

Each operator (driver) needs Class A, B, or C license based on truck size. 8 hours training required. Business owners often need this.

TxDMV 30-day temporary permit available ($30). Required for all commercial tow trucks.

Alternative to full Motor Carrier Lease for businesses doing only owner-requested tows.

Towing services themselves are generally not subject to Texas sales tax when billed as a service. However, if the business sells taxable items (e.g., towed vehicle parts, towing equipment), a sales tax permit is required. Most towing businesses that perform repairs or sell parts must register.

All Texas LLCs are subject to franchise tax unless exempt. The tax is based on 'taxable margin' and applies even if no income is earned. New LLCs must file Form 05-359 annually or file a 'No Tax Due' report if under threshold.

Required for employers who withhold Texas withholding tax from employee wages. Most employers must register even if only withholding federal income tax.

Employers must register with TWC to report wages and pay unemployment taxes. Applies to all employers with one or more employees in Texas.

Many Texas cities impose a local business tax or 'municipal franchise tax' for the privilege of doing business. Examples include Houston, Dallas, Austin, and San Antonio. Businesses must contact the city's finance or tax department to determine specific obligations.

Required for all LLCs with employees or that file employment, excise, or alcohol/tobacco/firearms returns. Even single-member LLCs may need an EIN for banking or vendor purposes.

Towing businesses require Certificate of Occupancy. See Houston Code of Ordinances Sec. 10-5. Specific towing permit may also apply.

Required for all tow truck companies operating in unincorporated Harris County areas.

Towing/storage yards typically require 'CP' Commercial Parking zoning.

Required under Texas Transportation Code § 643.021. A surety bond of $10,000 is required for motor carriers operating in Texas. This applies to towing businesses that operate as common or contract carriers for hire.

Not mandated by Texas law. However, recommended for protection against claims of negligence, misrepresentation, or failure to perform services. Particularly relevant for dispatch errors or damage claims.

Only relevant if the towing business sells used vehicle parts or accessories. Not required by Texas law but may be necessary for risk management. Covered under broader liability policies.

Not applicable to standard towing operations. Only relevant if the business operates a facility where alcohol is served (e.g., a roadside bar or event space), which is not typical for towing businesses.

Mandated under 43 Texas Administrative Code § 25.64. Requires minimum liability limits of $300,000 for bodily injury and property damage per accident. Must be filed with TxDMV using Form MV-90.

While not required for all sole proprietorships, an LLC with employees or corporate tax treatment must obtain an EIN. Towing businesses typically need one if hiring drivers or filing business taxes.

LLCs are pass-through entities by default; profits are reported on owners’ personal returns (Form 1040 + Schedule C). If the LLC has employees, it must also file Form 941 (quarterly) and 940 (annually). Towing income is subject to self-employment tax (15.3% for Social Security and Medicare).

Monument signs for towing businesses common; height/area restrictions apply.

Fuel storage for tow trucks may trigger additional NFPA inspections.

Dallas Code Chapter 48A specifically regulates tow truck operations.

Towing/storage typically prohibited in commercial zones.

Required for all commercial alarm systems.

Large towing impound yards may trigger requirement.

Required for towing companies that cross state lines or assist in interstate recovery. Involves safety audit within first 12 months. Even intrastate operators may be required if involved in interstate commerce (e.g., towing out-of-state vehicles).

Drivers must comply with HOS rules (e.g., 11-hour driving limit after 10-hour break). Electronic Logging Devices (ELDs) are required for most towing operations in interstate commerce.

Required for all carriers with a USDOT number to update vehicle count, driver numbers, and operations. Part of ongoing FMCSA compliance.

Mandatory for all Texas LLCs. Must be filed annually to maintain active status with the state. Filed through the Texas Comptroller's website.

Towing services in Texas are generally subject to sales tax. The business must maintain an active sales tax permit. No formal annual renewal, but registration must be kept current.

Required under Texas Transportation Code §643.011. Must be renewed annually for each tow truck used in intrastate commerce. Registration includes issuance of a Texas Motor Carrier Number.

Required under 49 CFR Part 367. Businesses must file a Biennial Update by December 31 of odd-numbered years, but the Unified Registration System (URS) requires annual filings and fees.

All motor carriers must update their information every two years through the FMCSA's Licensing & Insurance (L&I) system. Required even if no changes occurred.

CDLs must be renewed every 5 years. Drivers must pass vision screening and, if applicable, provide a valid Medical Examiner’s Certificate. Required for all tow truck operators handling heavy-duty equipment.

Drivers must submit a valid Medical Examiner’s Certificate to the Texas DPS. Frequency depends on medical condition (every 1–24 months). Most drivers renew every 24 months.

Texas allows non-subscription. Employers who opt out must file a Non-Subscription Notice with TDI and post a notice in the workplace. Most towing companies carry coverage due to high-risk nature.

Towing businesses must provide a safe workplace, train employees on hazards (e.g., vehicle operation, traffic zones), and report work-related fatalities within 8 hours or hospitalizations within 24 hours. Posting OSHA workplace poster (Form 2203) is mandatory.

While most towing operations are mobile, if the business has a physical office or website used by customers to request service, it must be accessible to people with disabilities. Applies to all public-facing communications and services.

Towing companies with fleet storage or maintenance facilities may be subject. Requires development and implementation of an SPCC Plan certified by a professional engineer. Does not apply to mobile refueling or vehicles in transit.

The FTC’s primary consumer protection rules (e.g., Truth in Advertising, Telemarketing Sales Rule) apply generally, but the "Funeral Rule" does not. Towing businesses are not subject to industry-specific FTC rules unless engaged in deceptive advertising or false claims.

Towing businesses must avoid deceptive advertising (e.g., false pricing, fake emergency designations). Must disclose fees clearly (e.g., “$50 hook-up fee + $3/mile”) and comply with the Telemarketing Sales Rule if cold-calling. Applies to websites, signage, and phone scripts.

Towing companies must pay at least federal minimum wage ($7.25/hr) and overtime (1.5x regular rate after 40 hours/week). Independent contractor misclassification is a common risk; DOL scrutinizes driver classification. Recordkeeping of hours and wages required.

Most small towing businesses are exempt. If threshold is met, must provide eligible employees up to 12 weeks of unpaid, job-protected leave for qualifying medical/family reasons.

Required posters include: Texas Minimum Wage Poster, Federal Overtime & Minimum Wage (FLSA), OSHA Job Safety, USERRA, and EEO. Must be visible in employee work areas.

All Texas LLCs must file a franchise tax report annually, even if under the no-tax-due threshold ($1.39 million in annual revenue as of 2024). Due May 15.

Most multi-member LLCs file Form 1065 (partnership); single-member LLCs taxed as disregarded entities do not file separately. S-corps file Form 1120-S.

Self-employed owners must make estimated tax payments if net income exceeds thresholds. Applies to federal income and self-employment tax.

CMVs must pass annual safety inspection. Records of inspections must be retained for at least 14 months under 49 CFR §396.7. Required for all tow trucks meeting CMV definition.

IRS requires businesses to keep financial records (income, expenses, tax filings) for at least 4 years. TxDMV and FMCSA may require longer retention for vehicle and driver logs (up to 6 years).

Many Texas cities (e.g., Houston, Dallas, San Antonio) require towing businesses to obtain a local business license and display it prominently. Requirements vary by city.

All employers must complete Form I-9 for each employee to verify identity and work authorization. E-Verify is not mandatory federally unless in a state with requirements, but federal contractors must use it.

Towing operators using large tow trucks (e.g., rotators, heavy-duty wreckers) may require a CDL. Applies federally regardless of state.