Keep your passenger vehicles clean inside and out to encourage repeat business. Knowing how to start a passenger transportation company requires transportation business plan sample large capital outlay before you even open for business. You need to have a garage where you store your vehicles when they are not in use and do basic repairs.
In some cities, such as Cleveland, Ohio, you must have a fleet of at least 25 vehicles to start a taxicab company. Other cities require you to operate your passenger transportation company 24 hours a day, which requires you to hire several drivers. Itemize expenses, such as labor, vehicles, insurance, fuel and maintenance. Thoroughly research your market as you prepare your plan. Lyft are affecting the existing taxi companies in the area, and whether there’s room for a new player.
Additionally, they must have a chauffeur’s license. If you transport more than 16 passengers at a time, drivers need a commercial driver’s license, or CDL, with a passenger, or P, endorsement. In some states, you must also have a taxicab license from the local taxi commission. An emblem displayed on your cab from this licensing agency informs your customers that you follow a set of guidelines established for taxis.
Pay any fees for the business license. Register your business with the Secretary of State’s office in your state. Set up state and federal tax identification numbers so you can pay any taxes you collect from fares. This includes the installation of fare meters, communication equipment and safety shields between the driver and passengers.