Do you put car in neutral if towing backwards on a tow dolly?

It is not recommended to tow a car in neutral on a tow dolly, regardless of the direction. When towing a car on a tow dolly, the drive wheels of the towed car should be placed on the dolly, and the car's transmission should be placed in Park or first gear (for manual transmissions). This ensures that the towed car's wheels are not rotating, which can damage the transmission.