How to Start a Towing Business in Virginia: No State Board, Local Rules and the $210 Private-Property Tow Cap

October 29, 2026

If you searched “virginia towing license,” here is the direct answer: Virginia has no state towing license and no state towing board. The state does not issue a tow truck license, and no one can sell you a “Virginia tow license” that carries state authority. A tow business is regulated by the locality where it tows, by the consumer-protection rules in Title 46.2, Chapter 12 of the Code of Virginia, and by the same business, insurance and tax rules that apply to every Virginia company.

That makes the work mostly local. Before you buy a truck, identify every county, city and town where you plan to tow, read what each one allows, and learn what the state default rules say about private-property tows. The sections below are ordered by how much each rule shapes your daily operations.

Disclaimer: This article is informational content, not legal or tax advice. Talk with a qualified Virginia attorney before you sign a towing agreement or lot contract, and with a CPA before you choose an entity structure or register for taxes.

What You Will Need Before You Start

Gather these items before you file anything or sign any contracts:

• A written list of every locality you plan to tow in, with the police department or sheriff’s office and the Commissioner of the Revenue contact for each
• A proposed business name, checked against the State Corporation Commission (SCC) business search at cis.scc.virginia.gov
• A filing budget: $100 for LLC Articles of Organization, $10 if you reserve the name, and $50 for the annual registration fee once the LLC exists
• A registered agent who meets Virginia’s requirements (covered in Step 5)
• Insurance quotes from commercial carriers that write towing coverage. Premiums and limits vary widely, so collect several quotes
• Photos of your trucks, storage lot and signage, since localities and police lists often ask for them
• A federal Employer Identification Number (EIN) from the IRS and a Virginia Tax account
• A one-page fee sheet, a vehicle release form and a personal property inventory form

Step 1: Handle Non-Consensual Tows From Private Property

Most private-property tow work is governed by Va. Code 46.2-1231. A lot owner may have a trespassing vehicle towed if signs are posted at all entrances. Localities can change this through an ordinance under Va. Code 46.2-1232, so treat the posting rule as the baseline, not the final word. Three obligations fall on you as the operator.

1. Report every tow. You must notify the State Police or the local law-enforcement agency without delay of each non-consensual tow. Failing to report is a traffic infraction punishable by a fine of up to $100, and it limits your storage charge to one day.
2. Post your full fee list. A business that tows without the owner’s consent must prominently display a full list of its fees at its main place of business and at every place where vehicles are reclaimed. Handing the owner a written fee list at reclaim also satisfies this requirement.
3. Collect only what is posted. Charges above the posted list cannot be collected.

Keep a timestamped record for every tow: photos of the vehicle and the posted signs, the time of the tow, the police notification and the reclaim paperwork. That file is your best defense if an owner disputes a charge.

Step 2: Learn the State Default Price Caps

Va. Code 46.2-1233.1 A sets default caps for a passenger car towed without the owner’s consent from private property when no local ordinance sets different limits. The default caps are:

• Hookup and initial tow: not more than $210
• Additional fee: not more than $30 per instance for a tow between 7:00 p.m. and 8:00 a.m., or on a Saturday, Sunday or holiday, and never more than two such fees
• Storage: no storage charge for 24 hours or less
• Other fees: none in the first 24 hours

The section was amended as recently as 2025. Read the current text on law.lis.virginia.gov before you quote a number to a customer or print one on a sign. These are caps for that kind of tow, not a rate card for every job. Other vehicle types and other kinds of tows may fall outside this cap, so check the statute and any local ordinance before you price them.

Step 3: Work Within the Local Layer

Counties, cities and towns may regulate trespass tows by ordinance under Va. Code 46.2-1232 and 46.2-1233. Common local requirements include:

• Photographs or other proof of the reason for removal
• Signs showing maximum charges
• Verbal approval from a designated agent before the tow
• Written authorization from the property owner during business hours

Localities in Planning Districts 8 and 16 must set by ordinance a hookup fee of at least $135, up to the state maximum, and an after-hours fee of at least $25. Planning District 8 covers Northern Virginia, and those localities may also do the following:

• Require a permit and a facility inspection from companies that tow vehicles out of the locality to a place in Virginia within 10 miles
• Charge reasonable permit fees
• Require a permit to tow and store vehicles inside their own limits

The permit rule does not apply to public safety towing. Read the ordinance of every locality where you will tow, and call its police department or Commissioner of the Revenue if anything is unclear. Do not rely on a neighboring locality’s rules, and do not assume that a rule you read in one city applies in the county next door.

Step 4: Apply for Police Rotation Lists

Police rotation lists are run by each police department or sheriff’s office, and each agency sets its own requirements. Lists commonly ask for proof of insurance, a secure storage lot, driver background checks and fast response times. Requirements vary, so ask each agency for its written criteria, application and response-time expectations before you apply. Expect the answers to differ from one locality to the next.

Step 5: Set Up the Business

Form the entity with the SCC

Most small tow operators form a limited liability company (LLC), though the right choice depends on your situation, so confirm it with an attorney or CPA. For an LLC:

• Articles of Organization (Form LLC1011): $100, filed online through the SCC Clerk’s Information System at cis.scc.virginia.gov.
• Name: must contain “limited company,” “limited liability company,” “LC,” “L.C.,” “LLC” or “L.L.C.” and be distinguishable from names already on file. You can reserve a name for $10 for 120 days.
• Expedited service: next day for $50 or $100 (submitted by 2:00 p.m. Eastern, response by 4:00 p.m. the next business day), or same day for $200 (submitted by 10:00 a.m. Eastern, response by 4:00 p.m.). Expedited service is online only and nonrefundable.
• Registered agent: must be a Virginia resident with a Virginia street registered office, available during business hours, and either a member of the Virginia State Bar or a member, manager, officer, trustee or general partner of the entity. An entity cannot be its own agent.
• Annual cost: Virginia LLCs file no annual report. They pay a $50 annual registration fee to the SCC, due the last day of the 12th month after the month the LLC was organized, and every year after. The SCC assesses the fee about two months ahead. A late payment adds a $25 penalty, and the LLC is canceled at the end of the third month after the due date.

If you form a stock corporation instead, the Articles of Incorporation (Form SCC619) cost $75. Corporations file an annual report and pay an annual registration fee based on authorized shares: $100 for up to 5,000 shares, plus $30 for each additional 5,000 shares. Check the SCC annual fee schedule for current figures. The annual registration fee is due the last day of the formation month, and the annual report is due the last day of the 12th month after formation. It may be filed no earlier than three months before that date.

If you will operate under a name other than your legal name, file an Assumed Name Certificate with the SCC for $10. It is filed with the SCC, not the circuit court, and no newspaper publication is required.

Get an EIN and register with Virginia Tax

Get your federal EIN from the IRS, then register with the Virginia Department of Taxation at tax.virginia.gov. Virginia’s base sales tax is 5.3% (state plus local). It is 6% in the regional-tax localities, 6.3% in eight localities and 7% in the Historic Triangle. The grocery rate is 1%. Ask Virginia Tax whether any of your charges, such as storage or ancillary services, are subject to sales tax. If you form a corporation, Virginia’s corporate income tax is a flat 6%.

Check the local business license (BPOL)

Virginia has no general statewide business license, and the SCC issues none. The local license is the Business, Professional and Occupational License (BPOL) tax under Va. Code 58.1-3700 et seq., administered by each city, county or town, usually through the Commissioner of the Revenue. Not every locality levies one. Va. Code 58.1-3704 allows a locality to levy no general license, and Stafford, Rockingham, Bedford County, Washington County, Montgomery County, Louisa and Fluvanna have no general county license. Towns can displace the county tax, so your license may come from a town rather than the county.

The statutory floor depends on population. A locality with more than 50,000 people cannot require a license for businesses with gross receipts under $100,000. A locality with 25,000 to 50,000 people cannot require one for gross receipts under $50,000. No floor applies to localities under 25,000 people. Localities over 50,000 may waive the license up to $200,000, but confirm that waiver ceiling with the locality before you rely on it. Localities set their own rates and filing deadlines, so ask the Commissioner of the Revenue for both.

Buy coverage and plan for employees

Towing insurance typically includes commercial auto, on-hook and garagekeepers coverage. Limits come from insurers and from local contracts, not from a state board, so ask each insurer what its policy requires and what your police rotation or lot contracts demand. Virginia requires workers’ compensation coverage once a business has three or more employees. Noncompliance carries a penalty of up to $250 a day, with a maximum of $50,000.

Heavy wreckers have additional rules

Heavy wreckers may bring commercial driver’s license (CDL) requirements and federal motor carrier rules, especially for trips across state lines. Check with the Virginia DMV at dmv.virginia.gov and the Federal Motor Carrier Safety Administration at fmcsa.dot.gov before you buy or dispatch a heavy truck.

Tips for Getting It Right

• Photograph your lot, entrance and signage before every private-property job.
• Keep one current fee sheet, and place copies at the office, at the reclaim window and in each truck.
• Call the Commissioner of the Revenue before your first tow in any new locality.
• Ask insurers whether garagekeepers coverage applies to vehicles stored in your lot and under your contracts.
• Ask the police department for its rotation criteria in writing, and keep a copy in your compliance file.

Common Mistakes to Avoid

• Paying for a “Virginia tow license.” No state credential exists, and vendors selling one are not selling a state approval.
• Quoting $210 as your standard rate. It is a cap for one kind of tow. Check the current statute and the local ordinance first.
• Towing without signs at every entrance. The posting rule in 46.2-1231 is the baseline, and a missing sign can make a tow hard to defend.
• Skipping the police report. Failing to report is a traffic infraction, and it cuts your storage charge to one day.
• Assuming one locality’s ordinance covers the next one. Read each ordinance separately.
• Confusing the SCC filing with a local license. Forming an LLC does not satisfy BPOL, and a BPOL license does not form an entity.
• Hiring the third employee without workers’ compensation. The penalty can reach $250 a day, up to $50,000.
• Running a heavy wrecker without checking CDL and federal rules. Confirm the requirements with the DMV and FMCSA before you dispatch.

What to Expect

Operators who map their local rules, form the entity and collect insurance quotes before taking their first job may find the launch smoother. Results vary by locality, insurer and customer base, and timing depends on SCC processing, insurance underwriting, and any local approvals or police list applications. A complete, dated tow file may help if a customer disputes a charge, though no file guarantees a particular outcome. Confirm any figure in this article against the current source before you rely on it.

Checklist: Your First Four Steps

1. Read the ordinances for every locality where you will tow, and call each police department or the Commissioner of the Revenue to confirm.
2. Form the entity with the SCC, pay the annual registration fee on schedule, and register with Virginia Tax.
3. Get insurance quotes covering commercial auto, on-hook and garagekeepers coverage, and plan for workers’ compensation at three or more employees.
4. Call the police department or sheriff’s office about its rotation requirements, and ask for the application in writing.

This article is informational, not legal or tax advice. Consult a qualified Virginia attorney and CPA for your specific situation.