What does it take to start your own bus/ transportation company in
California? What licenses, permits and insurance are required before
you can begin to transfer passengers?

Before starting a passenger transportation business you will want to
check out www.cpuc.ca.gov/published/Graphics/575.PDF for the PUC
General Order 115-F. You'll want to obtain a TCP# and you'll want to
register with the DMV. Perhaps you'd like to got to: lctmag.com and
see what information is there.
lgcamp at www.webspawner.com/users/editmasters

About all you have to do, is go to the California Public Utilities
Commission, Transportation section, at:
http://www.cpuc.ca.gov/static/transportation/transcos.htm

The links under "Need Information on Starting or Operating a Passenger
Carrier?" will provide you with just about everything you need.

Good luck...