Most Uber and Lyft drivers are sole proprietors who will report their ride share earnings on the Schedule C tax form, but some of you may have an LLC, corporation, or other tax entity that you prefer to operate under.
It’s a smart move — by reporting your Uber and Lyft earnings under the umbrella of a corporation, you may be able to lower your tax bill.
Neither Uber nor Lyft makes it totally clear how to have your earnings filed under your Employer ID Number (EIN) or another tax ID.
And after you do figure out how to navigate each Uber & Lyft’s tax reporting system, there’s often not a lot of reassurance that you’ve done it right and everything will be correctly reported at tax time.
I’ve operated as an Uber and Lyft driver under my S-Corp for a few years now, so I’ll walk you through how you can let Uber and Lyft know that you are operating under an EIN or another tax classification.
And I can tell you to expect at tax time each year.
Which tax classifications does Uber accept?
Uber allows you to operate under many different tax classifications. By default, drivers are individuals/sole proprietors, but Uber also allows drivers to operate under the following tax classifications:
- Individual/Sole Proprietor
- C Corporation
- S Corporation
- Limited Liability C Corporation
- Limited Liability S Corporation
- Limited Liability Partnership
- Single member LLC under a business entity
- Single member LLC with individual as sole owner
- Partnership
- Trust/estate
How to set your tax classification with Uber
In the Uber Driver app, tap Menu > Account > Tax Info > Tax Settings.
On the tax settings screen, you can select your federal tax classification, and enter your company legal name, DBA, and EIN.
Change your tax settings in the Uber Driver app
Options on the Uber Tax settings page
How to set your tax classification with Lyft
Lyft allows drivers to select two tax classifications: Individual, or Corporation/LLC.
There are two ways to change your tax classification settings with Lyft.
Lyft Driver App Instructions
Select Menu > Account > Pay and Tax Info > Scroll to Tax Info.
Those steps will direct you to your profile page at Lyft.com, where you can update your info.
Lyft.com Instructions
- Log in at Lyft.com/login
- On the left menu, click “Payout Information”
- Click the edit button
- Enter the relevant info. Classification, EIN, etc
- Click Save
After you have successfully entered your info, the Tax Classification should be the entity that you entered.
Lyft’s system never displays any part of your EIN displayed on screen after you submit it, and if you re-click “Edit Tax Info,” the EIN field is blank.
The blank EIN field may make you feel like Lyft hasn’t correctly received or stored your info, which is not reassuring. But in my experience, Lyft does receive and use the info you input.
Go to Lyft.com/login and click Payout Information
Enter your tax classification and EIN
You can also use an EIN with other top gig companies
You can use your business entity for any 1099 work that you do.
When you are completing your tax info or filling out a W-9, use your EIN or other business entity to be taxed as that entity.
You can use your EIN at top gigs like:
- DoorDash
- Instacart
- Shipt
- Amazon Flex
- …and any other gig app that has you fill out a w-9 or classifies you as a 1099 contractor
What happens at tax time?
One of my fears when I first created my S-Corp was that Uber and Lyft would file a 1099 under my SSN, and I’d either have to spend time correcting that with Uber and Lyft or pay the higher tax rate of a sole proprietor.
Neither company spells it out in huge letters that you’ve correctly listed your EIN, and they don’t specifically say that your income will be reported to your EIN. For a new corporation holder, that might be scary. It was for me.
In my experience, both companies sent me a 1099 in January that listed my EIN and corporation name rather than my SSN.
I’ve learned that companies don’t need to send a 1099 to a corporation, but Uber and Lyft do.
I appreciate getting the 1099s because they reassure me that the income has been properly attributed to my EIN.
So when you file your taxes or have someone else prepare your taxes, you can be assured that the IRS knows that your income is tied to your EIN, not your SSN.
Aissa says
Thanks so much this is very helpful as I was thinking to do doordash and UberEats. Just one question if you don’t mind. When you initially apply you submit your first and last name and SS for the background check then once you are approved you can can edit the tax info to your business entity in the app settings?
Doug H says
Yes, that’s correct. They will have your SSN for background check purposes, then your business EIN for tax purposes.
Aissatou Ba says
Thanks again. Much appreciated
Judy says
My uber under my llc and I have drivers do receive taxes under my all under my llc
khan says
i have one question ,
if i open an account with Uber/Left in January as a sole proprietor but in Nov i Register my business as a c corporation . will Uber/lyft still attributed my all income to EIN or they will divide it between individual ( from Jan to Nov) from Nov to Dec they will attribute to Corporation ?
Doug H says
Here’s what happened to me. I created an S-corp in October and updated my tax info on Uber/Lyft with the EIN. The following year, I received one 1099 that attributed all of the income to the EIN. They did not divide it. This was years ago, so I can’t guarantee that they still do it that way.
Leo says
Hi Doug,
I have bought a car under my LLC’s business name. I wanted to use it for livery but insurance coverage is so expensive nowadays, I am now thinking about insuring it under my name and use for Uber. What kind of License Plate did you use for your S-Corporation? What would be your advice for me in this situation? Any suggestion will be highly appreciated. Thanks a lot for your time.
Have a nice weekend.
Leo
Doug H says
I don’t use any special registration. For rideshare, you can have the car in your name and use standard registration and typical auto insurance with a rideshare endorsement/add on.
Asia says
Hello, I have recently started my business and I am needed info on how to be able to purchase a vehicle with my LLC. Do you have any tips you could give me? If so please email me at [email protected]. Thanks in advance!
Asia
Michael says
Thank you for this blog it has opened a new opportunity for me to look into. Hope all is well, I’ve been driving for Uber for a while now and I have a few questions and need your advice. which one is better to go with LLC or s corp? And if I update from an individual or sole proprietor will the earnings in term of what I have already made transfer?
Thiago says
Hi Doug. Does Ubereats or Doordash request any additional insurance when you declare as a business (EIN)? Or do they just ask for regular car insurance?
Doug H says
Thiago – None of the gig & rideshare apps will ask for additional insurance if you use an EIN. But I always recommend rideshare insurance, or whichever insurance product in your state that covers deliveries.
Hillary Abdool says
I am a member of an llc. I am not the inly member can i still register with uber using my llc ein number?
DougH says
I believe so but you can double check with a tax preparer or CPA
Fabio says
Thanks much for helping me clarify so many question marks popping above my head!
If you can help me with 2 questions though, I’d be grateful:
– I have an S Corp already open, but it’s classified as a Video Editing company. Can I use this S Corp to file my taxes as a Uber / Uber Eats / DoorDash driver? I want to switch careers to delivery driver full time, but I wanna make it right from the start.
– Can I start driving for Uber as an individual and then change my tax setting to S Corp?
Thank you!
DougH says
1. Your classification is only for govt statistical studies, so you can use your existing S Corp for your gig economy taxes. You can change the classification next time you file taxes if you want to. 2. Yes, you can start as an individual and then change to S corp. It’s pretty easy to update your tax ID in the app or online
Fabio says
Thank you sir!!