Is it the self-steering type, or does it have a pivoting plate for making turns so the whole axle assembly turns underneath the towed vehicle? My family shares a Demco Car Caddy that uses the caster of the dolly wheels to track in turns, then self-center on straight pulls. There's a lock pin that centers the steering for towing bobtailed. This rig has a tie rod and a toe adjustment. A VERY slight amount of toe-in works best on it, less than 1/8". If yours is a rigid-axle model without caster steer, the wheels should be adjusted straight ahead, zero toe. Also, take a measurement from the rim just above the tire bead on both sides, to the tongue. Both wheels should measure the same distance from the tongue assembly, even if the toe checks out. You don't want the wheels pointing in a different direction than the centerline of the tongue.
Jerry