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.
Eugenio says
Puedo registrarme en Uber con una LLC sin tener SSN?
Doug H says
No. You need the SSN for a background check
Keith P says
Why did you opt for S Corp instead of Limited Liability S Corp?
Doug H says
To be honest, I wasn’t aware of the LLC as s-sorp option when I established my business
Cooldude says
Great info. Does the EIN apply to all uber services or just rides? Also, do bonuses, tips, and all types of payouts end up on EIN, or does some go on SSN? I’m curious to see a screenshot of the tax summary with this. It would be great to deduct the fees that uber themselves take.
Doug H says
The EIN applies to any work you do on the Uber or Uber Eats platform. That includes bonus, tips, and other payouts.
Rhonda says
Hi Greg. I am interested in becoming a driver for Amazon Flex. I have an EIN number but the Amazon Flex application rejected it when it asked for my SSN number. I then telephoned someone at Amazon Flex for assistance to explain my issue. I was told that Amazon Flex does not allow independent contractors to use their EIN numbers. I was told that I would have to use my SSN number. Now, I am hearing that I could have worked as an independent contractor utilizing my EIN number. Is that correct? If so, how do I troubleshoot this issue?
Doug H says
You have to sign up with your SSN for the background check. Once you’re an active driver, you can update your tax info with your EIN.
Edhey Rosario says
Greetings, I have a lot of doubts. I want to start working as a driver in uber eat but I don’t know how to register in EIN. Select the Sole Proprietor option then continue and then it asks me if sole proprietor in these comes option: be a self-employed individual or an independent contractor. Sole proprietors (self-employed individuals) report all business income and expenses on their individual tax returns (Form 1040). The following option is household employer in which the option appears: babysitters, nannies, au pairs, cleaning people, housekeepers, maids, drivers, health aids, private nurses, caretakers, yard workers, and similar domestic workers. Which one do I select?
Doug H says
You don’t need an EIN to drive for Uber Eats. Almost every driver will choose the Sole Proprietor option. You should only pick one of the other options if you have already have a business entity and you want the Uber income to be taxed under that entity.
James says
Can you go in more details explaining the different
Single member LLC under a business entity
Single member LLC with individual as sole owner?
Doug H says
I don’t feel qualified to give a precise answer. A CPA or CPA blog could help. But I will say that Lyft doesn’t offer as many options as Uber, only corporation/LLC or individual. I’m not sure why Uber has so many options.
Anthony says
I have a dumb ? What is better any why is the other good and not. Why would you want to use the EIN over the SSN
just trying to see the out come of both thank you
Doug H says
You can potentially save on taxes if the income gets attributed to a business entity instead of a personal SSN