Get paid! You can pay yourself as an employee or business owner, but you should talk with a tax expert to determine the best method.Open a DoorDash account – make sure to use your company name and tax ID number to get paid as a business.You can also get help from our banking partners to help you find the best banking options. Open a business bank account – your local bank may have business solutions. Our recommended insurance partners can help you with free quotes and exclusive M圜ompanyWorks pricing. If you decide to expand your fleet, you’ll have to buy a workers’ compensation policy to cover workplace injuries. Get business insurance – you’ll probably need General Liability and Commercial Vehicle insurance to start.We have partners who can do the research and provide forms specific to your DoorDash gig. Research local and state licenses and permits, then apply for each one.Form an LLC or Corporation for DoorDash driving.Choose a catchy business name – Put together a few (2-3) memorable words to describe your service, like Dashers, LLC, IDoorDash LLC, etc.Start a simple business plan – taking the time to write out a plan will show you whether or not you can be profitable before you spend any money.LLCs can request the Small Business status by submitting form 2553 to the Internal Revenue Service. TIP: Elect S-Chapter, or Small Business status with the IRS to reduce the amount of tax you’ll have to pay. We can’t tell you which type of company to form, but we can tell you that most of our clients form LLCs for gig work businesses. Corporations are usually better for large and/or complex businesses. Before you sign up with DoorDAsh, register an LLC (or Corporation). Business formation costs are tax-deductible, so you can write off your LLC costs on next year’s tax return. Lenders and investors would rather work with registered businesses over sole proprietors, to protect their investments.Įven if you’re just driving as a side hustle, it pays to form a Limited Liability Company to protect you from costly lawsuits. Attract investors – You may not need investors, but if you ever decide to expand your fleet, you’ll have a lot more success raising funds and interest with an LLC.An LLC can be owned by just one or multiple owners (called managers or members). They’re also easier to change owners than a traditional Corporation. Easy to manage – LLCs generally require less reporting and forms.Pass-through taxation – LLC owners only have to report business expenses, losses, and profits on personal tax returns, preventing additional tax at the company level.Limited liability protection – separate business and personal assets to protect your wealth from lawsuits.You may be able to protect yourself somewhat with general liability insurance, but you’re still on the hook for whatever insurance doesn’t pay. Without the liability protection of an LLC or Corporation, you could be financially wiped out. Any and all of your personal funds and belongings can be seized to satisfy a legal settlement. However, driving without an official company means you are personally liable for any legal claims that occur while you’re driving. Many folks are just driving for a little extra cash, or as a hobby, and decide that the cost of forming a business is too much. Lots of Dashers have driven without an official company. Driving without a Registered Business (LLC or Corporation) Simply replace your personal name and social security number with the new business information. If you have already opened a DoorDash account, you can add your business name and tax ID number to your Dasher profile. Learn more about LLC tax requirements Can I Drive for DoorDash as a Business?Ībsolutely! When you sign up to drive, just enter your company name, tax ID number, and business bank account to get paid as a business (details below). The benefit of not having to file LLC tax returns means that business owners are only taxed once – called pass-through taxation. Instead, the company owners report expenses, losses, and profits on personal tax returns. Unlike the traditional Corporation structure, the LLC doesn’t have to file business tax returns. There are other common business types, but the LLC has become most popular with startups and small businesses because they’re affordable and easy to manage. Start a DoorDash Business Today! What is a DoorDash LLC?
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