What Do I Need to Start a Taxi Company?

Taxis and drivers are the most essential things needed for a taxi company.

Taxi companies provide rides to people from two points in the same area, to other towns or in shuttles back and forth to airports and other venues. In many cases, the customer pays by the mile in addition to a pick-up charge. Owning a taxi company can be lucrative if you set your prices right and provide excellent service.

Taxis

Taxis are one of the two most essential things you need to start a taxi company. Cars that are mechanically sound, not torn up inside and preferably without body damage make the best choices. Hire someone to install dispatch radios, meters to track mileage, displays for the running charges and the taxi light on top the car.

Drivers

Drivers are the second essential element of starting a taxi company. Your drivers should be courteous, have passed a criminal background check and have references that you have checked. Drivers should also have a clean driving record for the past few years. Check with your state department of safety to see if your drivers need to also hold a special license for taxi drivers.

Taxi Branding

Place your company logo, colors and name on the outsides of your taxis to advertise your company. Pay a body shop to paint the cars or have the cars professionally "wrapped" in a vinyl coating. Wrapping places a vinyl cover around the entire vehicle that looks much like a paint job and advertises your products or services. The vinyl is treated for durability purposes. Wrap cost in 2010 was approximately $12 to $16 a square foot. An average sedan would cost $2,000 to $3,000 to wrap, according to BuyerZone.com. The price increases if the wrap company has to create the design for you, instead of using one you already have ready.

Proper Paperwork

You need business licenses and insurance before you can open the doors to your new taxi company. In general, you can get your business license through the city hall business license office. Check your county administration building to determine whether you also need a county business license. The business license secures your promise to pay all sales tax due at the end of each fiscal year. Hire a commercial insurance agent to handle your insurance needs. You need special policies to cover your drivers and taxis; regular driver insurance does not cover commercial driving accidents. Carry adequate coverage to handle your liability risks.

Dispatch Equipment

A dispatcher and the equipment to receive service calls and dispatch drivers is another important element to starting a taxi company. A dispatcher is the contact between drivers, customers and management.

References

• Taxi Register.com: Starting a Taxi Firm
• BuyerZone.com: Vehicle Wrap Buyer's Guide