Starting a Bus
Service
How
will I finance the purchase of the bus?
What
authorities do I need? How do I file for
these authorities?
What
kind of insurance do I need and what amount of coverage?
What
safety requirements will I need to meet?
What
are the requirements for vehicle maintenance?
What
is a PUC Tax? (this may not be required in all states)
What
road and fuel taxes will I need to file and pay?
What
can I expect in my first year of operations?
I
want to start a company here is a checklist to help you make plans.
I
would like to get a printed copy of this article for reference
by
Morgan Rush, Demand Media
Starting a
passenger transportation company requires a 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. Know the regulations for your
city before you invest in your ground transportation business.
Step 1
Prepare a
business plan for your passenger transportation company. Set clear goals and objectives
for profits by listing fares and anticipated market locations. Itemize
expenses, such as labor, vehicles, insurance, fuel and maintenance. Thoroughly
research your market as you prepare your plan.
Step 2
Acquire
financing for your passenger transportation company. The information you
gathered for your business plan becomes part of your presentation to lending
institutions for financing your business.
Step 3
Hire
employees. Depending on your state and the number of passengers allowed in your
vehicles, anyone driving one of your vehicles for hire must be 18 years old and
a valid driver's license. 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.
Step 4
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. Pay any fees.
Step 5
Purchase your
vehicles. Submit them to the appropriate vehicle inspections required by your
state government and pay licensing fees. Modify vehicles, as necessary. This
includes the installation of fare meters, communication equipment and safety
shields between the driver and passengers.
Step 6
Set up your
business office and storage/maintenance garage. Acquire the computers, phones
and other office equipment needed to run a business. Buy communication
equipment so you can communicate with your drivers.
Step 7
Apply for a
business license in the municipality where you are operating your business. 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.
