One of the most hated industries in Hawaii is towing. Whether on city or private property, drivers can rack up huge towing bills and consumers often make complaints about over-charging.
It’s a business that’s regulated by state law and requires towing operators to disclose maximum charges. But some companies are known for padding their mileage, charging excessive overtime fees and failing to provide receipts or accept cash payments.
Fast Response Times
One of the best things about towing in Honolulu is that the city is relatively small and the service providers are fairly close to hand. As a result, the city has a plethora of quality hawaiian tow companies and assorted roadside assistance providers. As a harried motorist you are likely to encounter at least a few of these services on any given day. As a consumer you can weed out the good from the bad by doing your due diligence and using reputable sources of information. In short, you will likely be rewarded with the best possible price for your buck and your vehicle will get back on the road in no time. Whether you are an experienced tow truck driver or a first-timer, a little forethought and a few tips can make your life easier in the long run.
Affordable Service
Towing in Honolulu HI is an affordable service that most people can afford. There are a variety of reasons why you might need a tow, such as if your vehicle breaks down, you have an accident or you’re in need of roadside assistance.
The service is usually offered on an hourly basis, and the driver either gets you back on the road or takes your car to a safe location. They can also perform other roadside services, such as changing a flat tire or delivering fuel.
A tow company can earn a lot of money from government contracts. For example, Stoneridge Recoveries, which handles police tows for a swath of Oahu, earns $21,000 per month.
There are many ways to improve the towing experience. For example, Hawaii lawmakers are considering a bill that would require tow operators to unhook vehicles before charging them. This will help to reduce unnecessary conflict between drivers and tow companies.
Diversify Your Revenue
Tow truck companies can diversify their revenue by acquiring contracts with city and town governments, repair shops, apartment complexes and other businesses. These contracts provide a more stable income stream than marketing towards individuals.
In addition, towing services often receive large amounts of business from automotive dealerships, vehicle warranties, roadside assistance platforms and major insurance providers. Many of these contracts pay a low per tow rate, but they can help to make up for a decline in overall call volume.
Opponents argue that the elimination of these exemptions would increase the cost of doing business in Hawaii and create inequitable taxing situations. They also believe that HB 58 SD1 will not result in an increase in state revenues and that it would further delay the economic recovery from the COVID-19 pandemic.
The proposed measure, which would impose general excise taxes on certain transactions, is not a cure-all to Hawaii’s financial crisis and will only delay the recovery of state revenues if government expenditures are not curtailed as well. This would stall economic growth and increase costs to our residents, who are already struggling with an economy in decline.
Establish a Legal Business Entity
Choosing what entity your business legally operates as is one of the most important decisions you can make. It has a significant impact on your legal exposure, tax treatment and government requirements.
There are several business entity types available, including sole proprietorships, partnerships, corporations and limited liability companies (LLCs). Each type offers owners different protections and has its own tax options.
To choose the right entity, it’s important to think through all the pros and cons of each structure. A qualified business lawyer can help you weigh your options and make the best choice for your company.
If you are thinking of starting a Towing in Honolulu HI, it’s important to establish a legal business entity first. This will protect you from personal liability if your company is sued.