A folding trailer may be capable of moving between a use position and a storage position. The folding trailer may include an axle that is capable of moving between a first position in which the axle is generally aligned along an axis and a second position in which the axle is disposed in a folded configuration. The folding trailer may also include a towing arm that is movable between an extended position in which a portion of the towing arm extends beyond the front portion of the frame to facilitate attached to a towing vehicle and a collapsed position in which the towing arm is at least substantially disposed underneath the frame. In addition, the trailer may include an adjustment assembly that is sized and configured to adjust the position of the axle between the first and second positions, and adjust the position of the towing arm between the extended and collapsed positions. Advantageously, the adjustment assembly may have different configurations and arrangements. In addition, the adjustment assembly may be used to secure the trailer in the use or storage positions.