How to Start a Taxi or Limousine Business in West Virginia: PSC Certificate and Insurance

If you want to start a taxi business in West Virginia, understand this first: you are not just forming a company. Taxis and limousines are common carriers, regulated by the Public Service Commission of West Virginia (PSC). You cannot carry paying passengers until the PSC issues you a certificate of convenience and necessity. This guide covers the order we would follow: what the PSC requires, which state filings come first, what insurance you must carry, and the mistakes that send applications back.

This article is informational, not legal or tax advice. PSC rules and state fees change. The figures below come from West Virginia Code and PSC rules verified on October 23, 2026. Confirm each one with the agency before you file, and talk to a qualified attorney or CPA about your ownership structure and tax position.

What the PSC Regulates: Taxi, Limousine and Rideshare

Taxis and limousines in West Virginia are regulated as common carriers under West Virginia Code chapter 24A and PSC rule 150 CSR 9. The rules depend on the vehicle and the service, so decide what you are running before you buy anything.

• Taxicab: a vehicle with at least 3 doors that seats at least 4 people, including the driver.
• Limousine: a vehicle that seats at least 5 people.
• Luxury limousine service: a limousine service with a minimum charge of $60 and a formally dressed chauffeur.
• Rideshare: a different regime. Rideshare operators hold a DMV permit under W. Va. Code 17-29, not a PSC certificate. If your model is app-based dispatch, confirm which rules apply before you assume the PSC process covers you.

Cities may also have their own taxi ordinances on top of state rules. You will check that in Step 3.

What You Need Before You Start

• A business name that meets West Virginia naming rules and is not already taken or reserved
• Articles of Organization for an LLC (Form LLD-1) and the $100 filing fee
• A State Tax Division Business Registration Certificate ($30)
• Commercial auto insurance that meets PSC minimums for each vehicle
• Vehicles that meet the PSC door and seating requirements for your service
• The $100 PSC filing fee, the cost of a legal advertisement, and the $25 annual insurance registration
• A written rate schedule for your service
• A computer and an account on the One Stop Business Portal at business4.wv.gov
• Contact details for your city clerk or finance office

Step-by-Step: Starting Your Taxi or Limo Business

Step 1: Pick your service type and vehicles first

Your vehicle decides your service category, and your service decides your insurance tier. A taxi must have at least 3 doors and seat at least 4 people including the driver. A limousine must seat at least 5. If you plan a luxury limousine service, you must set a minimum charge of at least $60 and provide a formally dressed chauffeur.

Buy or lease vehicles only after you have checked them against these specifications. A 4-seat vehicle works for a taxi but fails the limousine test. Also note that passenger vehicles carrying 6 to 12 passengers face higher insurance minimums than those carrying 5 or fewer. Choosing a larger vehicle raises your insurance cost, so make that decision on purpose.

Step 2: Form your LLC with the Secretary of State

Most taxi operators form a limited liability company to keep personal assets separate from business liability. Your name must include limited liability company, limited company, or one of the abbreviations LLC, L.L.C., LC, or L.C. (Ltd. and Co. may be used for Limited and Company). It must also be distinguishable from every other name already registered or reserved with the Secretary of State.

You can reserve a name for 120 days for a $15 fee at sos.wv.gov/reserveregister-business-name. To form the company, file Form LLD-1, Articles of Organization of Limited Liability Company, with a $100 filing fee. File through the One Stop Business Portal at business4.wv.gov or through the Secretary of State at sos.wv.gov/business.

Standard processing takes 5 to 10 business days. Expedited options cost extra on top of the filing fee: $25 for in-person same day, $25 for next business day, $250 for 2 hours, and $500 for 1 hour. Online filings add a $1.00 portal processing fee.

The LLD-1 asks for a registered agent for service of process only "if any." West Virginia does not require a commercial agent. The Secretary of State is appointed as attorney-in-fact for every entity that files organizing documents, so it can accept service on your behalf. If you name an individual or company as agent, keep that address current. Changing an agent costs $15 on Form AAO.

An LLC pays no state franchise tax and no corporation net income tax. Members report their share of income on their personal income tax, which runs from 2.11% to 4.58% for tax year 2026.

Step 3: Register with the State Tax Division and check city rules

West Virginia has no general statewide business license. The closest equivalent is the Business Registration Certificate from the State Tax Division. Every business must hold one before it engages in business activity. The one-time fee is $30. You can file on Form WV/BUS-APP or online at business4.wv.gov. Each fixed business location needs its own certificate, and the certificate stays valid until your business name, location or ownership changes. Filing with the Secretary of State does not replace it.

If you will operate under a name other than your LLC's legal name, file a trade name registration (DBA) with the Secretary of State, not a county clerk. For an LLC, the form is NR-3, and the fee is $25.00 plus a $1.00 online processing fee if you file through the One Stop Business Portal.

Cities are where taxi operators most often get caught off guard. Many West Virginia cities levy a gross receipts business and occupation (B&O) tax on services, require a city business license, and charge a weekly per-worker city service fee. The state B&O tax applies only to utilities, so these city charges are the ones that may reach your fares. Check with the city clerk or finance office in every city where you plan to pick up passengers. Ask whether the city has its own taxi rules, what the current B&O rate is, and what the license costs. We have not verified those city figures, so do not budget from this article alone.

On sales tax, the state rate is 6%, and 101 municipalities add a 1% local sales tax on top. That number rises to 107 on January 1, 2027. Ask the State Tax Division how your fares are treated before you set your rate card.

Step 4: Buy insurance that meets PSC minimums

PSC liability minimums depend on how many passengers the vehicle carries. Use these as the floor, not the target.

Vehicle type	Bodily injury per person	Bodily injury per accident	Property damage
Passenger vehicle seating 5 or fewer	$100,000	$200,000	$25,000
Passenger vehicle carrying 6 to 12 passengers	$200,000	$500,000	$25,000

You must also carry cargo (property) coverage of $15,000 for vehicles of 1 to 15 passengers. Ask your agent to write the policy as commercial passenger coverage for your named carrier. The named insured should match your LLC's exact legal name, and the policy should be active before you file the annual insurance registration.

Step 5: Prepare each vehicle

Each vehicle needs a uniform vehicle identification card. Confirm the card process with the PSC before you put a vehicle into service. Taxis and limousines must also display the carrier name and rates on the vehicle under PSC rule 4.12. Plan the decals and rate cards before the vehicle goes on the road. Taking photos of each vehicle with its signage and rate card will help you prove compliance if an inspector or the PSC asks.

Step 6: File your PSC application for a certificate

You need a certificate of convenience and necessity before you operate (W. Va. Code 24A-2-5). The application fee is $100 under PSC rule 4.6.1. The application also requires public notice: you must publish a legal advertisement about your application. The publication cost varies by newspaper, so request a quote before you choose one. Keep proof of publication for your file.

Prepare to answer questions about your service area, vehicles, insurance and rates. Do not carry paying passengers, or advertise service as available, until the PSC has issued your certificate. Operating before the certificate exists is the most expensive mistake in this process.

Step 7: Register your insurance and pay the annual fee

Once your policy is bound, file the annual insurance registration with the PSC. The fee is $25 under PSC rule 3.5. Keep the filing current every year, and treat a lapsed policy as an emergency. Do not let your coverage expire on the renewal date while a vehicle is still in service.

Step 8: Set up your recurring compliance calendar

Your LLC's annual report is due each year between January 1 and June 30, for $25. If you file after June 30, the cost becomes $75 because of a $50 late fee. Put the June 30 deadline on your calendar and file early. Also track your insurance renewal, your PSC annual registration, your city business license renewal, and any changes to your business name, location or ownership, which require updates to the Business Registration Certificate.

Tips for a Smoother Application

• Read the full rule before you buy a vehicle. Read 150 CSR 9 in full. The summaries here cover the points most often missed, but the rule governs.
• Use the same name everywhere. Your LLC name, insurance policy, vehicle decals, rate cards and PSC filing should match exactly.
• Ask your insurance agent about PSC filings. Ask whether they handle PSC insurance registration and how quickly they can issue the required proof.
• Call the city before you pick a location. Ask the city clerk about its taxi rules, license, and B&O rate. A city rule can change your whole pricing model.
• Keep a single compliance folder. Store your LLD-1 filing, Business Registration Certificate, PSC certificate, insurance declarations, publication proof and annual reports in one place.

Common Mistakes to Avoid

• Operating before the certificate issues. A vehicle on the street without a certificate creates legal and insurance exposure.
• Buying the wrong vehicle. A limousine that seats 4 does not meet the 5-seat minimum. Check seating and door count before you sign.
• Carrying only the minimum insurance without a review. PSC minimums are the legal floor. Your actual exposure from a single serious crash may be much higher, so ask an agent what additional coverage makes sense.
• Assuming a state license covers the city. The Business Registration Certificate is a state filing. Cities may require their own license, B&O registration and taxi permit.
• Mixing up rideshare and taxi rules. A DMV permit under W. Va. Code 17-29 is a separate regime from a PSC certificate.
• Using a name you have not registered. Operating under a trade name without a DBA filing creates confusion on contracts, insurance and your PSC application.
• Missing the June 30 annual report. The late cost jumps from $25 to $75, and a delinquent entity creates problems with banks, insurers and the state.

What to Expect: Costs and Timing

Based on the verified fees above, your fixed state costs for the first year should include the following items. Insurance premiums, vehicle costs, publication fees and any city charges are outside this list, and they can be significant.

Item	Agency	Fee
LLC Articles of Organization (Form LLD-1)	Secretary of State	$100
Name reservation (optional, 120 days)	Secretary of State	$15
Business Registration Certificate	State Tax Division	$30
PSC certificate application	Public Service Commission	$100
Annual insurance registration	Public Service Commission	$25
LLC annual report (filed by June 30)	Secretary of State	$25
DBA, if you operate under another name (LLC)	Secretary of State	$25 plus $1 online

On timing, the state filings are the quick part. Standard LLC processing runs 5 to 10 business days, and expedited options are available. The PSC process is slower because it includes public notice and agency review. We did not verify a current PSC processing time, so ask the PSC before you set a launch date, and do not sign vehicle leases or hire drivers on the expectation of a fixed opening day.

Once your certificate issues, a reasonable expectation is that you can begin operating within the approved scope, with the vehicles, insurance and rates that you described to the PSC. Stay within that scope. Changing vehicles, service area or rates may require a further PSC filing, so confirm that before you make the change.

When to Talk to a Professional

Get professional help if you have more than one vehicle type, plan to serve multiple cities, want to bring in partners, or are unsure whether your model is taxi, limousine or rideshare. An attorney can advise on the entity structure and PSC filing. A CPA can advise on the state income tax, the city B&O tax and sales tax treatment of your fares. An insurance agent who writes commercial passenger coverage in West Virginia can tell you what the minimums will cost and whether they fit your plan.

Reminder: this article is informational only and is not legal or tax advice. Verify every fee, requirement and deadline with the Public Service Commission, the Secretary of State, the State Tax Division, and your city before you file.