How to Get a Taxi Driver/Chauffeur License in Indiana
Indiana requires a taxi driver/chauffeur license to offer professional services. State fees are $19, which is well below the $71 national average.
Last verified: 2022-03-01 · Source: Institute for Justice, License to Work 3
Quick Facts
- License Required
- Yes
- Licensing Fees
- $19(well below the $71 national average)
- Exams Required
- 1
- Minimum Age
- 18 years old
What This Means for Your Home Taxi Driver/Chauffeur Business
Indiana makes it possible to run a home taxi driver/chauffeur business, but there's a licensing path to follow first. Indiana is one of 13 states that require licensing.
The good news: Indiana's $19 fee is below the $71 national average. The real investment is time, not money.
Once licensed, Indiana offers advantages: no sales tax on services, reducing complexity. Plus, LLC formation is just $100. Your total non-training startup can be under $1,000.
Important detail: Even though you're working from home, you'll still need a shop license from the Indiana licensing board. Your home workspace must meet their sanitation and safety standards. This is separate from your personal taxi driver/chauffeur license and is something many first-time home-based taxi driver/chauffeurs overlook.
How to Start Your Home Taxi Driver/Chauffeur Business
Follow these steps to legally launch your business in Indiana. Most people complete this within 2-4 weeks.
Complete Taxi Driver/Chauffeur Training
Enroll in a Indiana-approved taxi driver/chauffeur school.
Tip: You must apply for your exams within a set timeframe after completing your education — don't wait.
Pass the Required Exam ($19)
Once you've finished training, register for the required exam through the Indiana licensing board.
Form Your Indiana LLC ($100 state fee)
Register your business with the Indiana Secretary of State. An LLC protects your personal assets if something goes wrong — a client injury, a lawsuit, or unpaid bills. It also makes you look more professional to clients and helps with taxes.
Fast track: Services like ZenBusiness can form your Indiana LLC online for $0 + the $100 state filing fee. They handle the paperwork and registered agent service.
Get a Home Occupation Permit & Shop License
You need two things to legally operate from home:
- Home occupation permit — from your county clerk or zoning office. This confirms your neighborhood allows a business from your home. Fees vary by county ($25-$100 typically).
- Shop license — from the Indiana licensing board. Your home workspace must meet their sanitation standards, including proper ventilation, sanitary station setup, and waste disposal.
Get Business Insurance
General liability insurance protects you if a client has an allergic reaction, slips in your home, or claims damage. Most policies for home-based taxi driver/chauffeurs cost $15-$40/month. It's not legally required in Indiana, but going without it is a real risk when you're working with clients in your home.
Register for State & Federal Taxes
Indiana does not charge sales tax on personal services. So you won't need to collect sales tax from clients. However, you still need to:
- Get an EIN (Employer Identification Number) from the IRS — free, takes 5 minutes online
- Register with the Indiana Department of Revenue for state income tax
- If you sell products (shampoo, styling products), you will need to collect Indiana's 7% sales tax on those product sales
Book Your First Clients
You're legal and ready. Start building your client base:
- Set up an online booking system (Square Appointments, Booksy, or Vagaro are popular with home-based taxi driver/chauffeurs)
- Create a Google Business Profile so local clients can find you
- Post your work on Instagram — before-and-afters are the #1 way home taxi driver/chauffeurs attract clients
- Ask early clients for Google reviews — reviews are critical for home-based businesses without storefront visibility
Total Estimated Startup Costs
| Exam fees + license | $19 |
| Indiana LLC formation | $100 |
| Home occupation permit | $25 - $100 |
| Business insurance (first year) | $180 - $480 |
| Total (excluding training/school) | $324 - $699 |
* School tuition varies widely. Some community colleges offer programs under $5,000. The apprenticeship path avoids tuition entirely.
Indiana Business Setup Costs & Details
Here's what you need to know about setting up any home business in Indiana — beyond the taxi driver/chauffeur license itself.
Compare Taxi Driver/Chauffeur Requirements in Nearby States
See how Indiana's requirements compare to neighboring states.
Key takeaway: Requirements vary significantly across the region. Compare fees, training hours, and licensing status to find the best fit for your situation.
Frequently Asked Questions
How much does it cost to get a taxi driver/chauffeur license in Indiana?
What exams do I need to pass for a Indiana taxi driver/chauffeur license?
Can I run a taxi driver/chauffeur business from my home in Indiana?
Do I need to collect sales tax as a taxi driver/chauffeur in Indiana?
How much does an LLC cost in Indiana?
More Taxi Driver/Chauffeur Resources for Indiana
Taxi Driver/Chauffeur Salary in Indiana
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License Cost Breakdown
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No-License Jobs in Indiana
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Pricing Calculator
Figure out how much to charge clients
Startup Cost Calculator
Personalized budget for your home business
Sources & Disclaimer
Data Sources
- License data: Institute for Justice, License to Work 3 (2022). Independently verified dataset covering licensing requirements across all 50 states + DC.
- LLC and tax data: Indiana Secretary of State and Indiana Department of Revenue.
Disclaimer: This guide was last verified 2022-03-01. Licensing laws and fees change — always confirm current requirements directly with the Indiana licensing board before making business decisions. This site provides general information for educational purposes and is not legal advice.