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.
AllanB says
Doug – very popular subject indeed and you’ve done a great job service by putting this out there. I was curious, does your Corp/LLC own the vehicle or are you leasing it to the company? (or not doing anything with the vehicle)?
DougH says
In my case, the vehicle is in my personal name. I’d recommend talking to a tax preparer or CPA about your leasing idea. A lot of complications come with the tax perks of LLC/Corp so it’s a good idea to talk to a pro to figure out the details
Jon Stevens says
If I have an LLC in partnership with another member, and I list my LLC & its EIN number with Uber, plus my LLC bank account for direct deposits, do they pay my wages under the LLC name or my personal name? Also, at the end of the year do they issue the 1099 NEC or 1099-K to my personal name or LLC name & EIN? Thanks in advance.
DougH says
At the end of the year the 1099 will be issued to the EIN
David says
So when you switch things over to your LLC ..do you have a problem with the annual background check now that you put your EIN …and do you change your name to your LLC name also
DougH says
No, there shouldn’t be a problem with the background check. The EIN goes in your tax information area and the SSN associated with your account doesn’t change. And you don’t change your display name to the LLC.
Blue says
When filing an LLC on Secretary of State application, on the line it ask for business name… do I write, for example, Blue Delivery, LLC? Or, just ‘Blue Delivery’? And the title LLC will automatically given to my business name because it’s what I filed under? TIA.
DougH says
I’m not 100% sure but I believe you add in the LLC part. Your state’s form should have more instructions
Angie says
Hello and thank you for this wonderful information. My spouse and I feel an LLC might serve us best and want to form it together as one unit and use it for uber eat, Doordash Amazon flex….etc. I know we can form one LLC, with one EIN I believe. Can we switch our personal accounts to this one LLC with the one EIN???? We want to be 2 working under 1. Thanks in advance for any information on this.
DougH says
Yes, I believe you would be able to do that. First you sign up to drive using your SSN for the background check, then once you’re approved you can go into the tax information section of your profile and add in the EIN.
Eric says
I got terminated after only a week and a half riding Uber. I was working doordash before with no problem.. How can I get it reactivated?
Joussan Escobar says
Hello
Thank you for this information! Currently I am trying to become. Lyft driver, I also own my LLC, and have my EIN number, however, do I have to have a umbrella insurance if I want to use my EIN number? I ask cause those are very expensive here in Utah. Also, I don’t have any other business activities tied to my LLC.
DougH says
I don’t believe you would need an umbrella policy. The only additional insurance you would need is a rideshare-friendly auto insurance policy. They’re pretty common and affordable in most states. There are different regulations in each state, so if you want to be 100% sure you could contact a CPA or lawyer.
Victor Hugo says
Hello and thank you in advance for your information. My questions is: can I use an LLC license to operate 2 different business? I started driving for Lyft but I also want to open an online business store. Do I have to get 2 separate licenses or can I use the same one for both (Lyft and online business). Thank you for your help!
DougH says
Typically the LLC could include many different business activities. For me, my business entity covers what I do on gig apps and this website. But in terms of local businesses licenses, you would have to do research for your state to see what you need to get.
Brian says
Do you do more than one delivery service? Did you need multiple EIN’s or just one?
DougH says
Just one. A business can have many different activities under one EIN
Shanna says
Do you know how to do this for Doordash and Gribhub? I’m having a hard time finding it on their sites. Thank you.
DougH says
For DoorDash, go to help.doordash.com and use the chat feature to ask to update your W-9. I couldn’t find a direct way to edit that information in the app or on their website. I’m not familiar with Grubhub, though I imagine you should be able to do something similar through their support services.
R.L. Walker says
Hello Dough, firstly I want to say thank you for the great information. I’m a Uber/Lyfte driver as well and I’ve recently signed up for Doordash. I remember when I first did my w9 when coming on board and it gave those tax classification options and for the EIN. When I messaged them about it twice with two different people, they say said they couldn’t. I felt like Insta Cart was the same way. I know Grubhub doesn’t. Lastly, what do you think its best when forming a business as a rideshare driver as far as LLC C/S Corp, C Corp, S Corp?
DougH says
I think the most flexible option is LLC, then use the s-corp option at tax time. I don’t think c corps are used by gig workers or very small businesses without. I’m not sure why the apps won’t accept an EIN, that’s news to me
Jeff says
I just chatted with Doordash support. They informed me they do not support the LLC status. Then again they didn’t know what an LLC was so I am not certain this is the case. I will let you know what I find out, but as of now NO LLC under doordash.
DougH says
Thanks for that info. I believe the support person may have been incorrect. During the DoorDash activation process, you fill out a w-9 tax form. You should be able to use your LLC’s EIN on that form. Ask DoorDash if you can update your w-9.