John from Riverside Posted December 21, 2015 Share Posted December 21, 2015 (edited) So I have entered into a partnership with a some other people to start up a tow truck roadside and tow company where I live. - I still work full time at my university job - I will be part owner and do the billing for the company.....so I need to learn quickly in some of the aspects of this - There will be a regular tow truck.....to start. As the company progresses they will add a flatbed and another driver Anybody do this kind of work previous or know anything about it? Edited December 21, 2015 by John from Hemet Link to comment Share on other sites More sharing options...
Best Player Available Posted December 21, 2015 Share Posted December 21, 2015 Ask a lot of questions on the internet tubes Before you buy part of a tow truck company. Link to comment Share on other sites More sharing options...
John from Riverside Posted December 21, 2015 Author Share Posted December 21, 2015 Ask a lot of questions on the internet tubes Before you buy part of a tow truck company. Minimal financial risk for me. I have not put that much $$$$ into it. The majority of this is on the majority owner as he has started up a tow truck company before in another city. Did quite well with it. Link to comment Share on other sites More sharing options...
Best Player Available Posted December 21, 2015 Share Posted December 21, 2015 Minimal financial risk for me. I have not put that much $$$$ into it. The majority of this is on the majority owner as he has started up a tow truck company before in another city. Did quite well with it. I guess If I was getting into that business I would find out how to get into the city's and local AAA speed dial. That would seem to be quite lucrative. Link to comment Share on other sites More sharing options...
KD in CA Posted December 21, 2015 Share Posted December 21, 2015 Just make sure you haven't agreed to be personally liable in the event this company is sued. Any liability should be restricted to the partnership entity. And make sure you have clear documentation on ownership rights. I have a friend who thought he was a 'co-owner' in a company. Well he just got fired and isn't an owner anymore so my guess is he never really had any ownership rights. Link to comment Share on other sites More sharing options...
John from Riverside Posted December 21, 2015 Author Share Posted December 21, 2015 Some answers to some of the questions. - The company has insurance requirements and that is all set with a down payment. I am not personally liable as it is a company business with its own insurance. - 4 contracts already secured. Geico and AAA will be on board as soon as the Tow Truck is secured. - I have reviewed my ownership documents. I cannot be taken off without my approval. - As the other owner was in the security business before. Solid contacts with local police department for those type of tows/impounds. Will work to get on "rotation" as fast as possible. - Some things will get bought as the company grows......for instance need a stand along shed on the impound property for FBI tows and impounds as it has to be isolated and taped off. Those really pay. I have learned a lot in a short amount of time.....for instance we found a really good spot (the more cars you can impound the more money this makes....but you have to have room) and this lot was formeraly a marijuana dispensory with a huge back space (can fit about 30 cars) but there was some worry that the zone made it agriculture instead of commercial. Found out today no problem with zone and its suitable for a tow company. the cost of leasing is not too bad and to buy the space down the road is really reasonable. Link to comment Share on other sites More sharing options...
TakeYouToTasker Posted December 21, 2015 Share Posted December 21, 2015 Some answers to some of the questions. - The company has insurance requirements and that is all set with a down payment. I am not personally liable as it is a company business with its own insurance. That's not relevant to the situation. Do you have limited liability through incorporation? Link to comment Share on other sites More sharing options...
plenzmd1 Posted December 21, 2015 Share Posted December 21, 2015 Go to the Donner Pass and make a TV show Link to comment Share on other sites More sharing options...
John from Riverside Posted December 21, 2015 Author Share Posted December 21, 2015 That's not relevant to the situation. Do you have limited liability through incorporation? Yes. Link to comment Share on other sites More sharing options...
DC Tom Posted December 21, 2015 Share Posted December 21, 2015 I know in Maryland it's easy work. Sit in a parking lot, wait until someone parks their car, hook it up, demand $300 from them to give it back. I've heard rumors that in some jurisdictions that's known as "theft" or "extortion." But not in Maryland. You might want to double-check CA's laws and see how much you can extort from people. Knowing California, they probably have some wacky law like "It's illegal to tow a hybrid car, unless that car is parked in such a way that it threatens an exotic, endangered snail." Link to comment Share on other sites More sharing options...
John from Riverside Posted December 21, 2015 Author Share Posted December 21, 2015 I know in Maryland it's easy work. Sit in a parking lot, wait until someone parks their car, hook it up, demand $300 from them to give it back. I've heard rumors that in some jurisdictions that's known as "theft" or "extortion." But not in Maryland. You might want to double-check CA's laws and see how much you can extort from people. Knowing California, they probably have some wacky law like "It's illegal to tow a hybrid car, unless that car is parked in such a way that it threatens an exotic, endangered snail." I dont think our company will work that way provides services like tire change, unlocking cars, bringing gas i.e. roadside service Contracts with insurance companies to tow vehicles that break down. get in accidents etc etc. Move vehicles for various reasons but we would be called to do that. Of course the money in this business is the impounds as they charge so much per day (this is why having lots of lot space was important) but I cant see us cruizing around looking for cars to tow. Link to comment Share on other sites More sharing options...
jr1 Posted December 21, 2015 Share Posted December 21, 2015 keep meticulous records for tax purposes Link to comment Share on other sites More sharing options...
John from Riverside Posted December 22, 2015 Author Share Posted December 22, 2015 Are your drivers "employees" or "independent contractors"? That might make a difference te how you pay them and for what (OT?). Also you should make sure you do thorough background and criminal checks on drivers. You don't want a guy with DUIs on his record who ends up driving your truck and killing someone. For sure for sure Right now.....the whole company consists of 3 people. Me, the driver, and my daughter the dispacher and customer service rep. All part owners of the company. As things progress we will add a flatbed truck to the tow truck.....and then we will have to hire another driver who will be paid hourly and everything that comes with that. Link to comment Share on other sites More sharing options...
BringBackFergy Posted December 22, 2015 Share Posted December 22, 2015 For sure for sure Right now.....the whole company consists of 3 people. Me, the driver, and my daughter the dispacher and customer service rep. All part owners of the company. As things progress we will add a flatbed truck to the tow truck.....and then we will have to hire another driver who will be paid hourly and everything that comes with that. So you are a shareholder (as opposed to a "part owner"). How many shares are authorized and how many are issued and outstanding? Can the shares be dilluted? Majority shareholder? What type of voting is required for expenditures over, say, $1000? Sounds exciting. Good luck. Link to comment Share on other sites More sharing options...
snafu Posted December 22, 2015 Share Posted December 22, 2015 Other than what's already been said... Always make sure your workmans comp is paid - you can be personally liable for that not matter how you're organized. Always make sure your unemployment payments are made to the state. If you have to collect sales tax then collect it and send it in like clockwork. Accurately report your income. Don't screw around with labor laws regarding overtime, etc. With any business, the trip ups are the paperwork and red tape obligations. Run those well and you should be good. Link to comment Share on other sites More sharing options...
Nanker Posted December 22, 2015 Share Posted December 22, 2015 keep meticulous records for tax purposes Of course! Why do you think he started this thread? He's already keeping meticulous records right here. Link to comment Share on other sites More sharing options...
KD in CA Posted December 22, 2015 Share Posted December 22, 2015 Don't screw around with labor laws regarding overtime, etc.. Especially in CA. Link to comment Share on other sites More sharing options...
Acantha Posted December 22, 2015 Share Posted December 22, 2015 For sure for sure Right now.....the whole company consists of 3 people. Me, the driver, and my daughter the dispacher and customer service rep. All part owners of the company. As things progress we will add a flatbed truck to the tow truck.....and then we will have to hire another driver who will be paid hourly and everything that comes with that. Won't you need some alternative options for employees? Is your daughter and the driver going to work every day, all year long? Seems like that business is 24/7, no? I know everything comes with time and money as the business expands, but your description makes it sound like only the absolute minimum are on board at the moment. That driver is going to be pretty stressed out after a few long days and middle of the night accident calls. Link to comment Share on other sites More sharing options...
Gordio Posted December 22, 2015 Share Posted December 22, 2015 So I have entered into a partnership with a some other people to start up a tow truck roadside and tow company where I live. - I still work full time at my university job - I will be part owner and do the billing for the company.....so I need to learn quickly in some of the aspects of this - There will be a regular tow truck.....to start. As the company progresses they will add a flatbed and another driver Anybody do this kind of work previous or know anything about it? My friend's dad had a towing company/collision shop. Believe it or not the guy was a millionaire. Hustled his ass off though. Had a scanner & would drive to accidents as soon as he would hear of them. Wouldn't matter what time of night it was either. He is retired now & sold off the business. Link to comment Share on other sites More sharing options...
Gugny Posted December 22, 2015 Share Posted December 22, 2015 I know in Maryland it's easy work. Sit in a parking lot, wait until someone parks their car, hook it up, demand $300 from them to give it back. I've heard rumors that in some jurisdictions that's known as "theft" or "extortion." But not in Maryland. You might want to double-check CA's laws and see how much you can extort from people. Knowing California, they probably have some wacky law like "It's illegal to tow a hybrid car, unless that car is parked in such a way that it threatens an exotic, endangered snail." Only if the hybrid gets less than 40 MPG. Link to comment Share on other sites More sharing options...
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