What Licenses Do You Need to Start a Taxi Business?

Taxi Business

While it may seem tempting if you own your car, you cannot start a taxi business without the proper tools. Of course, a car is one of them, but other things will need to be considered too, such as the condition that your car is in, if you own the car (if not, the rental agreement will need to be looked at), and all the paperwork that goes along with starting your own business. If you are looking to start a business with more than one taxi, then other areas will also need to be looked into.

So, if you are interested in what licenses you need to start your taxi business, then read on.

Can I Start a Taxi Business from My Home?

As is the way with most businesses, it is best to start small and as profits grow, work your way up. As mentioned earlier, this will involve seriously looking at the condition of the car that you have, and whether you may need to use another one for your business. If you aren’t sure if your car is up to standard to operate a taxi business, then check out www.cabdirect.com for more information on the requirements.

You will also have to look into licensing. You cannot simply operate a taxi business one day without undertaking a few checks. This way, you will avoid penalties and fines.


The first is that you must have a standard driver’s license, that is in date and free from driving violations in your state. Then, there are the vehicle permits and vehicle for service permits, which highlight that the vehicles you are driving are safe and that you (and your staff if you have any) have also passed a background check.


As is the way with regular cars, to operate on the road, you will need to insure your taxi or vehicle. This is designed to protect your car in the event of damage, breakdowns, and of course, yourself and your passengers.

Airport Taxis

In the US, and indeed the world, one of the best places to pick people up is at an airport or to drop them off on their way to a vacation. Post 9/11, this is not as simple as just dropping off and picking up, and you will need to be able to pass the clearance for an airport security badge to do this legally.

Niches and Licenses

It may come as a surprise to learn that there is not only one kind of taxi and some of the niches are underrepresented. For instance, in the US, there are health taxis, which are usually aimed at helping older people who need to go from a nursing home to a hospital for treatment. If you are opting to having such a taxi, you will need to ensure that the car you choose for the job is wheelchair accessible and that you (or anyone on your staff who drives one of these taxis) are licensed in performing first aid.