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.
Carlo says
I have been working the whole year under my SSN. If I made a llc now and changed it. Can I still report my whole year income on the llc. For tax reasons. Thank you.
DougH says
It’s hard to say 100% for sure because I’m not a tax professional. But when you change your entity over to the LLC, they only send one document at the end of the year that puts all of the income under that entity.
Portia says
Thanks so much for this info! I have an LLC which I operate my freelance design business under. Its a new and growing business and so I drive uber/lyft most days to support my expenses (rent bills etc) would you recommended I file my uber earnings under my existing LLC ?
DougH says
Yes, I think that would be a good idea. But always double check with a tax preparer or CPA because everyone’s situation is different.
Kandy says
I drive for Uber and I want to get an EIN for banking purposes. I started driving for Uber 4 years ago. Can I apply for a sole proprietor business using the first day I was accepted as an Uber driver? I don’t owe any taxes.
Thank you,
DougH says
You are automatically a sole proprietor, there is no application to become one. For any tax benefit, you would have to create an LLC or corporation. The corporation would apply to business you do from the opening day and forward
teddy says
I have an existing S corp. but the caris in my personal name. Does that matter?
DougH says
It’s ok if your car is in your personal name. You can give your S Corp EIN to Uber/Lyft and they will send tax forms to that entity each year
Jorge says
Yes, It does. The S corporation is not allowed to use the standard mileage deduction for the use of your car on your business. If your car is under your name you have to create an accountable plan to be allowed to use the standard mileage which is more convenient for rideshare drivers. Under an accountable plan every month you give your own S corp a record of miles and the corporation reimburse the amount of money calculated based on The standard mileage rate, 58 cents per mile for the 2019 tax year. You won’t have to keep records of gasoline, maintenance, and repair or car insurance. An accountable Plan is easy to establish. there s a lot of templates on the internet you can use, and you can also add home office expenses to the plan in case it applies.
Steven Moller says
Hello,
I have just been approved to drive for Uber. Since I do not have a car, I was going to rent it from Avis. This would mean shelling out my own personal money for the vehicle rental. Then someone suggested to set up an LLC, like you did, have uber pay the LLC and then have the LLC pay me a fixed salary. I this is an great idea, and I think it sounds like something you did.
My main question is, now that I have been approved as a driver, how do I go about telling Uber that I will be working for the LLC (I will be its only employee) and that they are to pay the LLC, not me. Also, if I am leasing the car from Avis who has partnered with Uber, I got the vehicle, insurance, and maintanence all taken care of about $265 per week. My question is, do you think that I can get the same deal from avis? The main issue would be that the insurance is still valid.
DougH says
After you have been accepted as a driver, there is a Tax Information page where you list your tax status and your banking info. That’s where you can enter your LLC info. Each year, Uber will send tax information to the business entity instead of your personal SSN.
For the Avis rental, you have to go with the one through Uber because it’s a special rideshare rental. As you suspected, a typical rental from Avis doesn’t include rideshare insurance coverage.
HANSEN says
What about the corp name, should you leave it under your own as a CEO/President or change it to the legal s corp name?
DougH says
I think it’s the EIN that’s most important. Your profile name will be under your personal name or whoever is driving and the EIN is for back end tax purposes.
WhiteKnight Ent. says
Hi. Thank you for the tips! This info was a big help. Have you noticed Uber doesn’t give the option to enter an EIN if operating under a Single Member LLC (only SSN), being a “disregarded entity”, though Lyft accepts it, no questions asked, so to speak? Do you happen to know a work around? This would make filing the earnings and expenses easier at tax time. Thanks!
DougH says
I hadn’t noticed that, and I’m not sure of a workaround. A CPA or tax preparer might be more helpful.
George T. says
I have an existing LLC under a company name but the license doesn’t show my actually name. My Uber driver account is under my name, so it won’t accept my business license as a valid document. Is there a way around here?
DougH says
I think for a more complicated issue like this it would be helpful if you visited a local Uber office