How to Start a Cab Business in Ohio

Establishing a taxicab business in Ohio is quite expensive.

Ohio cities often place restrictions on taxicab startups to the point where it's difficult for a small operator to own a taxi business. The larger cities only allow operators with numerous cabs in their fleet to operate. Taxis in Ohio are often required to operate from a fixed base 24 hours a day, seven days a week, which makes it difficult for an independent Ohio taxi business to get started.

Instructions

1. Register the name of your taxicab business with the Ohio Secretary of State's Office. Pay any fees for this service. Set up state tax numbers so you can pay any sales or transportation taxes collected as fares. Apply with the U.S. Internal Revenue Service for a tax identification number.

2. Pick up a business permit application and any other paperwork necessary for a taxicab license from the city clerk's office where you plan to operate your Ohio taxi business. Ask for a copy of any municipal regulations for licensing a taxicab company. Place all of these documents into a portfolio to keep everything organized.

3. Study the taxicab regulations so you know exactly what you need to do. Each city has different regulations.

4. Acquire your fleet of taxis. Rent or purchase a storage facility for them. You may also use this as your base of operation.

5. Take the taxicabs to licensed vehicle inspection stations for vehicle inspection. Pay the fee for the inspections. Put the documentation for the inspections in the portfolio.

6. Hire drivers. Send all taxi drivers for a health physical. Place all health papers in the portfolio.

7. Establish hours of service and districts where you plan to operate. Most municipalities set the fare rate for you. Depending on the city, you may not be able to pick up fares in certain areas during designated hours. Ohio cities typically require that the taxicab business must prove that a particular area of town needs taxi service.

8. Complete the business permit application. This typically requires the name of the business, a mailing address, a phone number and the owner's name. Sign and date the permit application. Include all of the inspection papers and medical paperwork. Submit fees for the business permit when you turn it in to the city clerk's office. Pay the fees for each taxi driver, if required by the municipality, as well as any fees required for each taxi.

Tips & Warnings

• Keep your cabs clean, both inside and out, at all times to attract customers.

• Do not plan on cruising around looking for fares. Most Ohio cities require that taxis only pick up fares from designated taxi stands.

References

• The Buckeye Institute for Public Policy Solutions: Taxicab Regulation in Ohio's Largest Cities
• Ohio.gov: Ohio Business Gateway: Starting a Business