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How to run a taxi business

how to run a taxi business

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Research the regulations and laws that apply in your geographical area. State and city governments often have specific laws pertaining to taxi companies. Some puts limits on licenses and geographic restrictions on where the taxi can operate. In some large cities, license quotas may force you to buy a license from another license holder. Contact the state Department of Motor Vehicles (DMV) or appropriate local regulatory office to find out about required licenses and forms.

Protect the business from lawsuits by registering the taxi business as a corporation or limited liability company (LLC). These structure will provide protection of your personal assets. Consult with a tax adviser or attorney to determine which business structure is best. Open a business bank account to keep company finances separate from personal income.

Create a business plan. Outline how the business will advertise and market services, where it will focus its operations, and

how it will be different from the competition. Plan popular routes and pickup points. Focus on the basics of customer service and safe operation. Start small, but plan to expand.

Buy or lease a vehicle that is appropriate for the taxi business. Check that vehicle is easy to maintain, safe, and spacious. Ensure that customers have ample room both for themselves and for their luggage. Mark the vehicle in a way that lets potential customers know that the vehicle is available for taxi service.

Work to promote and market the business constantly. Hand out business cards with contact information. Meet with local restaurants and hotels to negotiate preferred service agreements and customer sharing. Network with as many people as possible to raise awareness for the taxi service.

Be cautious in your hiring of drivers. Make sure they have safe driving records and no criminal histories. You must ensure they are prompt, courteous and conscientious.

Category: Taxes

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