What kinds of permits are required to start a taxi business?

To start your own taxi business, most cities require you to apply for a car-for-hire permit and a business license. The car you use must also have a current registration and a minimum amount of liability insurance as required by the state in which you live.

Often governed by the Administration and Regulatory Services Department, the type of permits vary depending on the city in which you intend to operate. Federal law also requires all taxi drivers who pick up and drop off passengers at an International airport to obtain security badges. Some cities, like Houston, require taxi drivers to fill out this form regardless if they work on airport property or not.