How to Start a Taxi Business in Texas

Texas is the second-largest state in the U.S. in terms of geographical region and population. So starting a taxi business in Texas can be quite lucrative. Follow all the rules and regulations set for Texas cabs to avoid being fined or penalized. You must acquire licenses or get permits which allow you to operate a taxi business in Texas and show proof of insurance. You can start a taxi business in Texas using one or multiple vehicles.

Get a vehicle-for-service permit. You need this permit before you can start operating your taxi business in Texas. Get the permit from the city’s regulatory authority. For instance, in Houston, get a permit from the Regulatory and Services Department. You will need to complete the application form for a permit and get it notarized by a notary public. The form will be presented in municipal court and a traffic warrant check with be carried out.

Get a vehicle permit. If you will be starting a taxi business with multiple vehicles, provide a list of all the vehicles that will be used by the company. The list includes the date of manufacture, make, color, mileage and proof of vehicle ownership. Submit this form with the vehicle-for-service application.

Get insurance. Take all the vehicles you will use in the taxi business to the transportation section to be inspected. Fill out an insurance-policy form. This form is available from the Regulatory Services Department. Each vehicle will be issued a certificate of title if it passes the inspection.

Get a tax identification number from the Internal Revenue Service. Since you will be an employer (of taxi drivers), get an Employer Identification Number (EIN). Any kind of business that provides services is required to have a tax identification number. Fill out the forms and submit them online.

Employ drivers. Ensure that the drivers have taken a medical examination for heart problems, vision, fainting, epilepsy and general health. They should also have a character-reference form. This should be accompanied by a recommendation of two people who can vouch for the character of the driver and a clean drug-use history.