A flatbed tow truck loading a car at dusk, How to Start a Towing Business in Missouri

How to Start a Towing Business in Missouri

Last verified: November 4, 2026

Missouri does not issue a state towing license, and that is the trap: the rules that decide whether you can legally run a tow truck sit in RSMo 304.154, not in a license application. They cover your storage lot, your insurance, your hours and your rate sheet, and they change with the class of the county you operate in. This guide covers those rules first, then the LLC, tax and insurance steps.

What Missouri Requires of a Tow Company

RSMo 304.154 applies to a towing company that tows under the authority of sections 304.153, 304.155 or 304.157, which covers police-ordered tows and tows from private property. If you plan to do either, build the business around this table before you buy a truck.

RequirementWhat the statute saysSource
InsuranceA policy from an insurer authorized in Missouri, or a bond or other acceptable surety, of at least $500,000 per incident for injury, death or property damageRSMo 304.154, subsection 1
StorageA fenced, secure, lighted lot, or an enclosed, secure buildingRSMo 304.154, subsection 1
Address and phoneA verifiable business address visible from the street or road, and a working phone number listed or available through directory assistanceRSMo 304.154, subsection 1
AvailabilityOpen or available by appointment at least 10 hours a day, Monday through Friday, and reachable 24 hours a day, seven days a week, by an employee or a live answering serviceRSMo 304.154, subsection 1
Rate sheetPost a rate sheet at the business and give it to consumers on requestRSMo 304.154, subsection 1
Owner contactTell an owner where the vehicle is within 24 hours of the owner's contact, and charge no storage fee on a day you are closedRSMo 304.154, subsection 1
Fleet registrationKeep current registration on every tow truck in the fleetRSMo 304.154, subsection 1
Workers' compensationCover employees where Chapter 287 requires itRSMo 304.154, subsection 1
Moving a stored vehicleAt least 24 hours' notice to the owner, with the destination address and the cost, before a vehicle leaves your lotRSMo 304.154, subsection 5

Two more rules are easy to miss. The first tow must stay in Missouri unless the owner, or an agent such as the owner's motor club, approves otherwise. And unless law enforcement says the vehicle is evidence, insurance adjusters must be able to inspect it at no charge during business hours.

Where the Rules Change: County Class

The statute says towing companies located in second-, third- or fourth-class counties are exempt from RSMo 304.154, and that counties may add their own towing standards by ordinance. Some of the provisions also do not apply in third- and fourth-class counties. Look up your county's class before you decide where to put the lot, then call the county clerk or sheriff's office and ask whether a local towing ordinance exists. Do not assume an exemption: it removes the state checklist above, not liability for a bad tow.

Important: Even where RSMo 304.154 does not apply, RSMo 304.155 and RSMo 304.158 still govern the tows themselves, and your insurer will price the risk of towing whether or not the state requires coverage.

Which Tows You Can Legally Do

The money in towing is in the tows you are allowed to take, so learn the three sources of work and the paperwork each one carries.

Police and Highway Tows

Under RSMo 304.155, a law enforcement officer can authorize a tow of abandoned property in the officer's jurisdiction. On an interstate or freeway in an urbanized area, unattended property can be removed after 10 hours (immediately if an officer finds a serious hazard). Outside urbanized areas the unattended period is 24 hours, or 4 hours if an officer finds a serious hazard. If the property is not claimed within ten working days, the towing company checks Department of Revenue records for the owner and lienholder.

Private Property Tows

This is where new operators get sued. RSMo 304.158 says a towing company may not remove property from private land without the property owner's written authorization, except for law enforcement removals, and you must keep that written authorization for at least one year. An unauthorized removal makes the towing company or its affiliate liable for four times the towing and storage charges. Under RSMo 304.157, a property owner or manager can tow without an officer only when it is the owner, lessee or a full-time employee manager who is present, and only when one of these applies:

  • Signs that meet the statute's size and content rules are posted at every entrance, and they state the maximum towing and storage fee.
  • The vehicle is on owner-occupied residential property with four or fewer units, and 10 hours have passed since law enforcement was notified.
  • The vehicle is on other private property, and 96 hours have passed since law enforcement was notified.

For these tows you complete an abandoned property report when the tow is requested and deliver a copy to local law enforcement within two hours (sign-based tows) or 24 hours (all others). Law enforcement returns a signed copy to you.

Owner Notice, Charges and Release

Written notice goes to the registered owner and any lienholder within five working days, from the towing company when a property owner or lessee authorized the tow (RSMo 304.158). If the owner returns before the vehicle is removed, you may charge up to one-half of the regular towing charge. Local governments may set maximum towing and storage charges by ordinance. Storage operators must accept cash for towing and storage and keep enough money on site to make change. Your name, city and state must appear on the vehicle in letters at least three inches high. A knowing violation of RSMo 304.158 is a class A misdemeanor.

Step-by-Step: Set Up the Business

Step 1: Form Your Entity

In towing, the injured party sues the company and the truck owner, so an entity matters more than it does for most service businesses. An LLC is the usual choice. Missouri's filing fee is $50 online or $105 on paper (see the Missouri Secretary of State fee schedule), and an LLC files no annual report. File through the Missouri Business Filings portal or on Form LLC-1. A corporation files Form Corp. 41 for $58 and pays $20 online for its annual registration report. A sole proprietorship needs no state filing, but a judgment from one bad tow would reach your personal assets, which is the main reason not to use it. See our guide to starting an LLC in Missouri and the comparison of Missouri LLC formation services.

If you will trade under a name other than the LLC's, register it as a fictitious name with the Secretary of State on Form Corp. 56 ($7).

Step 2: Get an EIN

The IRS issues EINs free of charge. Apply at the IRS EIN application page and avoid look-alike sites that charge a fee. You need the number for a business bank account and for payroll.

Step 3: Register With the Department of Revenue

Register your business taxes through the Missouri Department of Revenue business registration page. A tow company typically registers for withholding if it has employees, and for sales tax if it sells taxable goods, such as parts. Whether your towing and storage charges themselves are taxable depends on the services listed in the sales tax statute, so ask the Department of Revenue before you invoice (Department of Revenue sales tax filing FAQ). The state sales tax rate is 4.225%, with local rates added; look yours up with the Department of Revenue rate lookup.

Step 4: Register as an Employer

If you hire drivers, register for unemployment insurance with the Division of Employment Security. The new employer rate is 2.376% (all others, 2024 to 2027) on a $9,000 wage base for 2026 (Division of Employment Security tax rates). Workers' compensation is required in Missouri at five or more employees (Division of Workers' Compensation: insurance requirement), but RSMo 304.154 separately requires a tow company to cover employees wherever Chapter 287 requires it, so confirm with your insurer before you put a first driver on the road.

Step 5: Check Local Licensing and Zoning

The Secretary of State does not issue business licenses; they come from cities and counties (Secretary of State FAQ). A storage lot is a land use, so ask the city or county planning office whether a tow yard is allowed on your parcel before you sign a lease. Our Missouri business license guide explains how to find the right office.

Step 6: Price and Buy the $500,000 Coverage

Ask brokers for a quote on the statutory minimum of $500,000 per incident and tell them you will store customers' vehicles, because storage liability is a different exposure from the truck. Compare at least three quotes in writing. Premiums depend on your driving record, truck and loss history, and the state does not publish a rate, so any premium you see in a generic guide is a guess.

Step 7: Confirm Federal and MoDOT Rules for Your Truck

Local towing inside Missouri and towing across state lines are regulated differently. MoDOT Motor Carrier Services handles credentials for carriers that operate only within Missouri, and its page does not say whether tow trucks need them. FMCSA's registration rules for USDOT numbers turn on vehicle weight and interstate operation (a gross vehicle or combination weight rating of 10,001 pounds or more, used in interstate commerce); check the FMCSA USDOT number page against your truck's weight rating. A commercial driver's license is also tied to weight, so check your truck's ratings against federal CDL rules before you buy. If you plan to haul vehicles for dealers or auctions as freight, read our trucking company guide.

Startup Costs the State Sets

ItemCostSource
LLC filing (online)$50Secretary of State fee schedule
Corporation filing$58Secretary of State fee schedule
Corporation annual registration report (online)$20Secretary of State fee schedule
Fictitious name$7Form Corp. 56
EINFreeIRS
Liability coverageMinimum $500,000 per incident; premium is quoted, not set by the stateRSMo 304.154
Truck, lot, equipmentNot set by the state; get dealer and landlord quotesLocal quotes

The truck, the lot and the insurance premium are the real startup costs, and none of them is a government fee. If you cannot yet price a fenced, lighted lot in your county, you are not ready to apply for police rotation work.

Common Mistakes to Avoid

  • Towing from private property without written authorization: RSMo 304.158 exposes you to four times the towing and storage charges. Keep the signed authorization for a year.
  • Skipping the abandoned property report: RSMo 304.157 sets two-hour and 24-hour delivery deadlines.
  • Storing cars in an unfenced or unlit yard: where RSMo 304.154 applies, this is a statutory requirement, and it is also the first thing an insurer asks about.
  • No posted rate sheet: RSMo 304.154 requires one, and local governments may cap your charges.
  • Letting a car leave storage without notice: 24 hours' written notice with the destination and cost is required before you move it.

Disclaimer

This content is informational only and not legal, tax, or business advice. Towing rules in Missouri depend on your county's class and local ordinances. Before launching, consult a qualified Missouri business attorney for the statutes above and a CPA for tax registration, and call your county and city offices to confirm local requirements.

Sources

Keep exploring: related Missouri guides