Why Las Vegas Requires Uber and Lyft Drivers to Hold a Business License

a license icon, las vegas car accident attorneysUber and Lyft drivers in Las Vegas are required to hold a business license in part to track automobile accidents. These licenses are not expensive and help law enforcement and legislators track the risks posed by ridesharing services. Requiring licenses also makes it easier for injured parties to identify when they are involved in an accident with a rideshare operator.

Licensing in Nevada

The State of Nevada classifies Uber and Lyft driver as transportation service providers. This means they must have a license similar to that required by taxi drivers. Uber and Lyft are responsible for ensuring that all of their drivers in Nevada secure this license within six months of the date they commence driving for the rideshare company. The fee for the licenses is roughly $200 and drivers have the option to register as either a sole proprietor or as an LLC.

Under Nevada law, the Nevada Transportation Authority has the power to inspect the rideshare provider’s records to verify that their drivers within the state comply with the licensing requirement. Drivers are required to renew their license and pay all applicable fees annually. When operating as a rideshare, drivers are required to display their Transportation Network Company decal on the vehicle below their Uber or Lyft decal. This must be visible for passengers to see from outside the vehicle.

In addition to the state license requirement, drivers in Las Vegas are required to secure a Clark County driver business license from the Clark County Business License Department. This requires an annual fee of $25, and an initial application fee of $45.

The Importance of Licensure

Licensure helps ensure that drivers meet the basic requirements for offering rideshare services. These include that they are 21 years of age or older, possess a valid driving license for at least 3 years, have a clean driving record, and can pass a criminal background check.

The licenses also help ensure that drivers maintain their vehicle in accordance with various safety standards. These include the age and condition of the vehicle, maintenance of safety equipment, etc. Ultimately, licensure helps protect passengers and other motorists by ensuring that rideshare drivers adhere to established safety standards and obey traffic rules and regulations for operating as a taxi service for both tourists and residents of Nevada.