What are the costs to start and maintain an airport shuttle business?

Generally speaking, you will need between $10,000 and $50,000 to start your own shuttle business. This is because you’ll need to purchase: At least one large, reliable vehicle Scheduling software and insurance A business website Your maintenance costs will be quite low, and will include the cost of leasing your vehicles (if applicable), as well as fuel. Visit our How to Start an Airport Shuttle Business guide to learn more about the costs of starting and maintaining this business.

Do I Need an LLC for My Airport Shuttle Business?

Starting a limited liability company (LLC) for your airport shuttle business can provide several benefits.

Most importantly, an LLC structure offers limited liability to its owners, which can protect their personal assets from lawsuits and creditors.

For an airport shuttle business, lawsuits can arise from things like traffic accidents, injuries, or damaging a customer’s belongings.

LLCs are also affordable, highly flexible (from a tax point-of-view), and can make your airport shuttle business seem more credible.

Recommended: Use Northwest to form an LLC for $29 (plus state fees).

Should I Start an LLC for an Airport Shuttle Business?

LLCs are a simple and inexpensive way to protect your personal assets and save money on taxes.

You should form an LLC when there's any risk involved in your business and/or when your business could benefit from tax options and increased credibility.

LLC Benefits for an Airport Shuttle Business

By starting an LLC for your airport shuttle business, you can:

Protect your savings, car, and house with limited liability protection
Have more tax benefits and options
Increase your business’s credibility

Limited Liability Protection

LLCs provide limited liability protection. This means your personal assets (e.g., car, house, bank account) are protected in the event your business is sued or if it defaults on a debt.

Airport shuttle businesses will benefit from liability protection because of the risk of personal injuries to customers, property damage, and trademark infringement.

Example 1: When an emergency comes up, one of your driver’s is forced to cancel at the last minute, leaving five of your passengers without transport to the airport. When one of your clients misses his flight as a result, he demands you compensate him for his time and expenses, and threatens to bring a case against your company in court. Limited liability will protect your personal assets if you are sued, and ensure that the claimant can seek compensation from your business only.

Example 2: While driving a few passengers to the airport, an inexperienced driver crashes into your van. Even though no one is fatally injured, a passenger in the backseat injures her head, and needs to be taken to the hospital immediately. If you are registered as an LLC, any liability that arises as a result of any medical expenses will be limited to your company’s assets, and not your own.

Example 3: You take on a business loan in order to purchase more company vehicles, hoping that this will allow you to expand your airport shuttle business and increase your revenue. When this doesn’t work out, you begin to worry that you will struggle to repay your business loan back. Since your business was registered as an LLC, limited liability will protect you from being personally liable for the debt if you fail to pay it back on time.

Example 4: One of your drivers fails to properly secure the luggage, leading it to become damaged during the trip. The affected passengers sue your business for the damages.

An LLC will also protect your personal assets in the event of commercial bankruptcy or loan default.

To maintain your LLC's limited liability protection, you must maintain your LLC's corporate veil.

LLC Tax Benefits and Options for an Airport Shuttle Business

LLCs, by default, are taxed as a pass-through entity, just like a sole proprietorship or partnership. This means that the business's net income passes through to the owner's individual tax return.

The business’s net income is then subject to income taxes (based on the owner's tax bracket) and self-employment taxes.

Sole proprietorships and partnerships are taxed in a similar way to LLCs, but they do not offer limited liability protection or other tax options.

S Corp Option for LLCs

An S corporation (S corp) is an IRS tax status that an LLC can elect. S corp status allows business owners to be treated as employees of the business (for tax purposes).

S corp tax status can reduce self-employment taxes and will allow business owners to contribute pre-tax dollars to 401k or health insurance premiums.

The S corp status requires that the business pay the employee-owner(s) a reasonable salary for the work they perform.

In addition, the business might need to spend more on accounting, bookkeeping, and payroll services. To offset these costs, you'd need to be saving about $2,000 a year on taxes.

We estimate that if an airport shuttle business owner can pay themselves a reasonable salary and at least $10,000 in distributions each year, they could benefit from S corp status.

You can start an S corp when you form your LLC. Our How to Start an S Corp guide will lead you through the process.

Credibility and Consumer Trust

Airport shuttle businesses rely on consumer trust. Credibility plays a key role in creating and maintaining any business.

Businesses gain consumer trust simply by forming an LLC.

A growing business can also benefit from the credibility of an LLC when applying for small business loans, grants, and credit.

Northwest will start an LLC for you for just $29 (plus state fees).

Get Started

How to Form an LLC

Forming an LLC is easy. There are two options for forming your LLC:

You can hire a professional LLC formation service to set up your LLC for a small fee
Or, you can choose your state from the list below to start an LLC yourself

Select Your State

For most new business owners, the best state to form an LLC in is the state where you live and where you plan to conduct your business.

Do LLCs Need Insurance?

Even though most LLCs are not legally required to purchase business insurance, this is generally almost always recommended.

This is because the limited liability offered by an LLC structure protects the owners’ assets only. If you want your business assets to also be protected, you will need to purchase business insurance.

Common Situations That General Liability Insurance May Cover For An Airport Shuttle Business

Example 1: When handling a customer’s luggage, one of your employees accidentally drops a large suitcase onto a customer’s foot and breaks their toe. General liability insurance would most likely cover any ensuing medical claims that stem from this accident.

Example 2: While moving a car from its designated space, the driver backs into a garage door and breaks a large pane of glass in the process. General liability insurance would likely be available to cover the damage made to the door and the glass.

Example 3: An airport shuttle company from a nearby town decides that your name is too similar to their and sues you for loss of income. General liability insurance would likely cover the costs of fighting this claim.

Other Types of Coverage Airport Shuttle Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all airport shuttle businesses should obtain:

Commercial Auto Insurance

Commercial auto insurance is a must for airport shuttles if they own or lease the vehicles they use. Airports are extremely busy places, making them prone to minor or even major accidents. Commercial auto insurance is typically mandated by the state and is available in different coverage limits.

Airport shuttle businesses are highly encouraged to buy comprehensive commercial auto insurance with generous coverage. From bodily harm to property damage, commercial auto insurance is likely to cover a wide range of problems or accidents on the road.

Commercial Property Insurance

If you own the space in which your shuttles are stored, commercial property insurance will help cover the cost of your property if it is damaged in covered events like a fire or storm. This coverage will also extend to any business items located on the property, such as administrative equipment like laptops or phone systems.

Workers' Compensation Insurance

If your business has employees, worker’s compensation insurance is typically mandated by the state to cover any potential employee injuries.

Commercial Umbrella Insurance

Commercial umbrella insurance will cover an airport shuttle business in the event that their primary policy reaches its coverage limits. So if a passenger is severely injured due to the fault of one of your drivers, commercial umbrella insurance will most likely help cover the cost of the medical bills and any lawsuits.

Business Interruption Insurance

If the airport is closed due to a strike or all of your vehicles are damaged in a nasty storm, business interruption insurance can help replace the income that you will lose during this time. For an airport shuttle service that relies on certain conditions in order to grow its revenue, this can be very helpful insurance to have when you’re unable to work.

Should I Start an LLC FAQ

Choosing the right business structure depends on your business’s unique circumstances and needs. However, unless your business is very low risk (like a hobby), an LLC is likely the better option.

Visit our LLC vs. Sole Proprietorship guide to learn more.

At a minimum, you’ll need general liability insurance, commercial auto insurance, workers’ compensation insurance, and commercial property insurance.

Read our Business Insurance for Airport Shuttle Businesses article for more info.

Generally speaking, you will need between $10,000 and $50,000 to start your own shuttle business. This is because you’ll need to purchase:

At least one large, reliable vehicle
Scheduling software and insurance
A business website

Your maintenance costs will be quite low, and will include the cost of leasing your vehicles (if applicable), as well as fuel.

Visit our How to Start an Airport Shuttle Business guide to learn more about the costs of starting and maintaining this business.

Ongoing expenses initially include the cost of fuel, cleaning, and vehicle maintenance. Fleet maintenance costs grow substantially as your fleet expands. You will also need to lease office and parking space as well as payroll.

Learn more about running an airport shuttle business.

An airport shuttle business makes money by charging people either a flat rate or charging per mile on rides to the airport.

Learn more about starting an airport shuttle business.

An airport shuttle business transport people to airports, typically in vans and/or buses. Passengers can sometimes pay a higher fee for a private ride, so they do not have to wait for the shuttle to pick up other passengers.

Lots of factors can affect an airport shuttle business’s profitability, including passenger volume, the amount charged per customer, and overhead costs.

Learn more about starting an airport shuttle business.