How to Start a Taxi Service

by Contributor - Updated September 26, 2017

How to Start a Taxi Service. Starting a taxi service is not as easy as it may seem. There are many steps that must be thoroughly followed to guarantee you will be able to open such a business. The following steps will guide you through the process of starting your own taxi service.

Get a license to drive a taxi. Start this process at the Department of Motor Vehicles. To drive a taxi, a particular license is needed. The name of this license varies from state to state.

Find out if your town regulates taxis. Many small towns do not. The only way to find this information is to make a visit to city hall and ask this question. By asking just one question, you will probably come away with a great deal of information regarding this service.

Determine who licenses the taxi companies. In some towns you have to buy the license and display it in your car. New York City requires the cars to have a medallion located on the outside of the car. Most likely, your state regulates and licenses taxi companies. Get in touch with someone at the Department of Transportation and they will be able to point you in the right direction.

Figure out start-up costs. Keep in mind that you will have to have a location for your company and at least one car or van. After figuring this number out, you will need to secure finances. These can be either from yourself, family and friends or a bank loan.

Visit a cab company in other city. By doing this, you will find out everything you need to know about the business and you will be able to determine if you have forgotten anything along the way. Make a list of items that you need to purchase to get your business up and running.

Start the business. By this time you should have the license, equipment, location and vehicles to start your operation.

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