JK_b/c_yolo has it pretty close. This is per the user manual, this is from my 2011 manual on page 52
The transfer case must be shifted into N (Neutral), automatic transmission must be shifted into PARK, and manual transmission must be placed in gear (NOT in NEUTRAL) for recreational towing.
I believe if the transmission is left in neutral it can damage it.
• Bring the vehicle to a complete stop, turn off the engine and press and hold the brake pedal.
• Shift the automatic transmission into NEUTRAL or depress the clutch pedal on a manual transmission.
• Shift the transfer case lever into N (Neutral).
• Start the engine and shift the transmission into REVERSE.
• Release the brake pedal (and clutch pedal on manual transmissions) for five seconds and ensure that there is no vehicle movement.
• Repeat the previous step with automatic transmission in DRIVE or manual transmission in first gear.
• Turn OFF the engine and leave the ignition switch in the unlocked OFF position.
• Firmly apply the parking brake and shift the transmission into PARK or place manual transmission in gear (NOT in Neutral).
• Attach the vehicle to the tow vehicle using a suitable tow bar and release the parking brake.
• Disconnect the negative battery cable, and secure it away from the negative battery post.
• Refer to your Owner's Manual on the DVD for further details.