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If you plan to start a taxi, limousine, or hired car service, you’ll need a taxi/limousine service license before you can begin operating. Being licensed gives your customers confidence that you will provide quality services that meet the standards of your local business license agency.

Applying for your Taxi License or Limousine License

Each city has different requirements for the taxi/limousine service license application process. Typically it’s a straightforward form to fill out, accompanied by a business license application fee. You will also need proof of insurance. In Overland Park, Kansas, as an example, you must have at least $60,000 combined single limit insurance coverage for injuries and/or death, as well as property damage deductible of $500 or less. Your city’s business licenses, permits & tax division can tell you what the requirements for insurance are for your taxi permit or limo permit.

If you plan to not only own the taxi or limo service, but also drive the vehicles, you’ll need additional business licenses, such as a chauffeur’s license. You may need to go to your local DMV to get a “Class B” or “Class C” license that permits you to drive a vehicle transporting high numbers of people.

Staying Compliant With Your Limo or Taxi Service

There are many regulations in the hired car industry that you’ll need to be aware of, including:

  • You’ll need special license plates to indicate your vehicle is for passengers who pay for the ride
  • You will be required to charge fees based on your city’s requirements for rates
  • You will conduct yourself professionally at all times
  • You will follow city, state and federal driving laws
  • You will be drug- and alcohol-free
  • Your vehicle will be up to city standards in terms of cleanliness, maintenance, and age

Failure to meet local ordinances for taxi/limousine service license may result in your license being revoked, and your business shut down.

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