Towing Permits & Licenses in Orem, UT

Required for all employers with one or more employees in Utah, including LLC members who receive wages. Sole proprietors without employees are exempt. Towing operations classified under NAICS 484121 (Local Trucking Without Storage) typically fall under risk class 7380 with base rate around $2.78 per $100 of payroll (2023 data).

Utah law requires all motor vehicles operated on public roads to have liability insurance meeting minimum limits: $25,000 bodily injury per person, $65,000 per accident, and $15,000 for property damage. Applies to all towing vehicles. Proof of insurance (SR-22 or standard form) must be provided upon registration.

Not mandated by Utah state law for towing businesses. However, many municipalities or property owners may require proof of general liability insurance for operating on private or public property. Strongly recommended due to risk of property damage during towing operations.

Traffic management plan required for 10+ vehicles

Towing engines/operations may require variance in industrial zones only

Required for all LLCs; annual renewal report separate (see below)

All LLCs must file annually even if no changes

Required for all for-hire towing operations with commercial vehicles; USDOT number prerequisite

Covers intrastate authority, taxes, and credentials; required alongside CMC permit for towing

Required if using trade name/DBA; renew every 5 years for $12

Specific to tow truck companies; operators need individual tow truck driver cards (not business license)

Towing services are subject to 6.1%-8.35% sales tax depending on location

Towing services in Utah are generally not subject to sales tax unless they include parts or equipment. However, if the business sells towed vehicles, accessories, or charges for storage (which may be taxable), registration is required. See Utah Code § 59-12-103 and Utah Admin. Code R-431.

Required for all employers paying wages to employees in Utah. Includes withholding state income tax from employee paychecks.

Employers must register with Utah Workforce Services and pay quarterly unemployment insurance taxes. New employers pay a standard rate of 2.0% on the first $34,400 of each employee’s wages (2024 rate).

LLCs in Utah are pass-through entities. While the LLC itself does not pay income tax, it must file Form TC-20S (S Corporation/Partnership/LLC Return) if it has Utah-source income. Single-member LLCs treated as disregarded entities must report income on the owner’s individual return (Form TC-40).

A $10,000 surety bond is required for all tow truck operators under Utah Code § 41-6a-1306. This bond ensures compliance with state towing laws and protects consumers. Required for registration with the Utah Highway Patrol Motor Carrier Services. Exemptions may apply for emergency service tows by law enforcement or fire departments.

Not legally required by Utah law. However, recommended for towing businesses to cover claims of negligence, improper handling, or damage during transport. Particularly valuable when transporting high-value vehicles.

Only relevant if the towing business sells physical goods. Not required by Utah law but may be necessary for risk management. Standard general liability policies may cover some product claims, but additional coverage may be needed for significant retail operations.

Not applicable to towing businesses. Required only for businesses licensed to sell or serve alcoholic beverages. Utah Division of Alcohol Beverage Control may require proof of liquor liability for on-premise liquor licenses, but this does not pertain to towing operations.

All tow truck operators must register with the Utah Highway Patrol Motor Carrier Services under Utah Code § 41-6a-1305. Requires submission of proof of surety bond ($10,000), commercial auto insurance, and business registration. Registration must be renewed every two years.

Single-member LLCs with no employees may use the owner's Social Security Number, but obtaining an EIN is recommended for liability separation. All towing businesses with employees or structured as multi-member LLCs must obtain an EIN.

Most Utah counties and cities require a business license or privilege tax for all businesses operating within their boundaries. For example, Salt Lake City charges an annual $25 business license fee. Contact local government for specific requirements.

Required for multi-member LLCs or single-member LLCs with employees. Even without employees, many banks require an EIN to open a business account. Obtained via IRS Form SS-4 or online.

Towing businesses using heavy-duty trucks may need to register under Utah’s Motor Carrier Registration program. This includes payment of apportioned fees based on weight and usage. Federal DOT number may also be required for interstate operations.

All tow trucks used for business must be registered as commercial vehicles. Fees depend on gross weight and county. Must display current registration.

Required for all businesses; towing companies classified under automotive services

Specific fee schedules per city; check municipal code (e.g., SLC Title 5, Chapter 6)

Must verify zoning allows "vehicle storage" or "towing services" (e.g., Salt Lake City Zoning Ordinance 21A.32)

Public hearing required; specific to counties like Salt Lake, Utah County (Utah County Code Title 17)

Required for fencing, lighting, or office builds (Uniform Building Code adopted locally)

Size/area limits per zone (e.g., SLC Ordinance 21A.26.120)

Fueling stations or large vehicle storage trigger; adopted International Fire Code

Required in most counties/cities to reduce false alarms

Common for tow yards near streets (e.g., SLC Transportation Code)

Required for all CDL drivers operating in interstate or intrastate commerce. Includes random testing (at least 25% for drugs, 10% for alcohol), pre-employment, post-accident, and reasonable suspicion testing. Must use certified labs and trained supervisors.

Required under the UCR Agreement for businesses operating CMVs in interstate or certain intrastate commerce. Utah participates in UCR. Businesses must register annually and pay fees based on fleet size. Even intrastate towing may require registration if vehicles exceed 10,001 lbs GVW.

Drivers must comply with 14-hour driving window, 11-hour driving limit, 10-hour break, and 34-hour restart. Electronic Logging Devices (ELDs) are required for most towing operations exceeding 10,000 lbs GVW engaged in interstate commerce or over certain thresholds.

Must perform periodic vehicle inspections (at least annually) and maintain records of repairs and maintenance. Drivers must complete pre-trip and post-trip inspection reports (DVIRs) for each day of operation. Applies to tow trucks meeting CMV definition.

A single-member LLC is treated as a disregarded entity and reports income on Form 1040 Schedule C. Multi-member LLCs file as partnerships using Form 1065. Profits are subject to self-employment tax (15.3%) unless elected otherwise. Towing income is taxable as ordinary income.

Towing operations involve vehicle operation, heavy equipment, and roadside hazards. Employers must provide safety training, maintain OSHA Form 300 (if over 10 employees), and report severe injuries (hospitalization, amputation, fatality) within 24 hours. Required postings include OSHA Job Safety and Health poster (OSHA 2203).

Towing businesses must ensure customer interactions (e.g., dispatch, office visits) are accessible. If operating a physical office, ADA Title III requires accessible entrances, counters, and restrooms. Telecommunications must be accessible (e.g., TTY or relay services). ADA does not require modifications to tow trucks, but dispatch systems and customer service must be accessible.

Towing businesses storing fuel, oil, or hydraulic fluids on-site (e.g., in tanks, drums, or vehicles) may be subject to SPCC. If above threshold and discharge risk exists, a written SPCC plan certified by a professional engineer is required. Most small towing operations with standard vehicle fuel tanks are exempt, but bulk storage increases risk.

Towing businesses must avoid deceptive advertising (e.g., false pricing, fake emergency services). Must disclose fees clearly (e.g., hook-up, mileage, storage). FTC enforces against "bait-and-switch" and unfair practices. Applies to online ads, signage, and verbal quotes. Also subject to FTC’s Telemarketing Sales Rule if using cold calls.

All Utah LLCs must file an Annual Report each year to remain in good standing. The report can be filed online through the Utah Division of Corporations portal. The due date is the anniversary of the LLC’s formation date.

Towing businesses may be subject to local business licensing requirements. For example, Salt Lake City and other municipalities require annual renewal. Check with the specific city or county where the business operates. State-level occupational licensing does not currently apply to towing services in Utah.

Towing services are subject to sales tax in Utah. The Sales Tax License issued by the Utah State Tax Commission does not expire but must be renewed if there are changes in ownership or location. Businesses must file periodic sales tax returns.

Towing and vehicle storage services are taxable in Utah. The filing frequency (monthly, quarterly, semiannual) is determined by the Utah State Tax Commission based on expected tax liability. Most new businesses start with monthly filings.

Employers must withhold state income tax from employee wages and file Form TC-720. New employers are typically assigned a monthly filing schedule until reevaluated.

An EIN is a one-time registration. No renewal is required. However, changes in structure (e.g., new LLC owner) may require updating IRS records.

A single-member LLC taxed as a disregarded entity files on the owner’s personal return. Multi-member LLCs taxed as partnerships must file Form 1065. S-Corp elections require Form 1120-S. Extensions available via Form 7004.

Utah imposes a corporate franchise tax (Business Privilege Tax) on corporations and LLCs electing corporate taxation. The rate is 4.95% of net income apportioned to Utah.

Employers must register with DWS and file Form UI-3/40 each quarter. New employers are assigned a standard rate until experience-rated.

All employers in Utah must provide workers’ compensation insurance. Towing operations fall under higher-risk classifications. Coverage must be maintained through a private insurer or self-insurance (if approved).

Utah requires businesses to display their Sales Tax License Certificate at the place of business. Local jurisdictions may also require display of general business licenses.

Required posters include the Federal Minimum Wage, Equal Employment Opportunity, Family and Medical Leave Act (FMLA), and Utah-specific notices (e.g., Utah Antidiscrimination Act). Posters must be visible to employees.

Towing vehicles may be subject to Utah’s Commercial Vehicle Safety Inspection Program. Vehicles over 10,000 lbs must pass annual safety inspections. Compliance with FMCSA standards may also apply if operating across state lines.

Businesses must keep invoices, receipts, tax returns, and exemption certificates for at least 4 years. Digital records are acceptable if accurate and accessible.

Single-member LLCs report income on Schedule C; multi-member LLCs may need to make estimated payments via Form 1040-ES or Form 1120-W. Payments are due quarterly.

FLSA requires payment of federal minimum wage ($7.25/hour) and overtime (1.5x regular rate for hours over 40/week). Towing drivers and mechanics are typically non-exempt. Independent contractor misclassification is a common risk; must meet FLSA criteria. Recordkeeping of hours and wages required.

All employers must complete Form I-9 to verify identity and work authorization for every employee. Must be retained for 3 years after hire or 1 year after employment ends, whichever is later. Applies to U.S. citizens and non-citizens. E-Verify is not federally required unless in a federal contract.

Towing vehicles (especially heavy-duty wreckers) often exceed 26,001 lbs GVWR. Drivers must hold a valid CDL. Employers must verify CDL status via FMCSA’s Drug and Alcohol Clearinghouse and maintain driver qualification files.

All towing vehicles must be registered annually. Commercial registration may require additional documentation. Renewal can be completed online or in person.

Towing businesses operating from a physical location must comply with local zoning laws (e.g., commercial zoning, signage, vehicle storage). Salt Lake County and other jurisdictions conduct periodic compliance checks.