As of 2024, Uber has 156 million monthly active users, meaning there’s a huge demand for rideshares. Not only that, but it has the largest market share, which makes it the most secure company to drive for.
If you’ve got a working car and need extra money, then driving for Uber can be a solid gig. But look past being just a contractor for the company; starting your own limited liability company (LLC) comes with many benefits, including protection of your personal assets.
Are you interested in creating an Uber LLC now? Then keep reading to find a complete guide to the process.
Do I Need an LLC to Drive for Uber?
This might seem like a simple question, but there may be people who aren’t aware of the answer.
No, you don’t need an LLC to drive for Uber. The requirements only touch upon the minimum age to drive in your state, your years of experience driving, and the use of a 4-door vehicle. You’ll also need some documents, such as:
- Your driver’s license
- Proof of residency
- Proof of vehicle insurance
Despite the fact that you’re not required to have an LLC to drive for Uber, it’s highly recommended that you form one. It offers multiple benefits for freelancers and contractors, including:
- Protection of your personal assets
- A professional image
- Tax flexibility
- Operational flexibility
As with anything, there are some drawbacks. However, for most people, the pros far outweigh the cons, especially since if you face any legal actions, only the assets under your LLC are at risk.
Can I Drive for Uber Under a Company Name?
The good news is yes, you can drive for Uber under a company name, including an LLC one. As long as you meet their requirements for contractors, then you’re fine.
When you sign up with Uber, you can put down your LLC name and employer identification number (EIN).
Now that these questions are out of the way, below are the steps to forming an LLC for an Uber driver.
Chose a Business Name
All LLCs must have unique names, plus you need something memorable, so start brainstorming. All states have their own requirements, so look them up before getting too attached to any single name. You can utilize their database to check for name availability too.
Also, keep in mind that the name must include “LLC” or some form of it, such as “Limited Liability Company” or “L.L.C.”
Register Your LLC
Now that you have your Uber LLC name, you can register it. To do this, you’ll have to file the articles of organization with the Secretary of State or the equivalent agency. The information you’ll need is:
- The LLC name and address
- Your registered agent
- The names of the members/managers
You’ll also have to pay the filing fee, which ranges from $50 to $500, depending on the state.
If you don’t want to deal with this paperwork, then use our free business registration service. Not only does the service include us filing your articles of organization, but it also gives you a free year of our registered agent service. All you have to pay is the state fee.
Create an Operating Agreement
The next step is creating your LLC’s operating agreement. Not all states require you to have one, but it’s still wise to have an operating agreement.
This document outlines how your business will operate, which is essential if you have other members. It’ll clearly state member roles, profit-sharing, and decision-making processes, so if you ever have any conflicts, they can be resolved with the information found here.
We at Business Anywhere can also take care of this document for you if you wish. There’s an additional fee though.
Obtain an EIN
You’ll have to open a business bank account, and to do so, you’ll need an EIN. It’s used for tax purposes, and you’re required to have one if you hire employees, so it’s handy to have.
What’s great is that you can apply for an EIN for free. So there’s no cost to requesting one from the IRS.
Open a Business Bank Account
You should always keep your personal and business finances separate. Not only will this help you maintain liability protection, but it’ll also simplify tax filings.
To get a business bank account, you’ll need to bring your LLC paperwork and EIN. In some cases, you’ll be required to bring the operating agreement as well.
Register for State and Local Taxes
If applicable, you should register with your state’s tax authority. You’ll learn more about sales tax and employment taxes.
Some states have LLC maintenance fees too. Check with yours to ensure there aren’t any surprises.
Update Your Uber Driver Profile
If you already have an Uber profile, then you’ll need to switch it to a business account. Inform Uber about your LLC and link your business bank account during this process.
To do this, you’ll go to your account. In the “Name” field, replace your name with your LLC’s name. Then, change your Social Security Number (SSN) in the “ID number” field to your EIN.
Maintain Your LLC
As time goes by, you’ll have to maintain your LLC to ensure it’s in good standing. For example, many states require yearly filings with fees, so make sure you keep thorough records. Document all your expenses, earnings, and mileage for tax purposes.
As of 2024, you’ll have to file a beneficial ownership information report too. It’s a one-time filing, although you’ll need to file an updated report if anything chances.
Start Your Own Uber LLC
It may sound a bit fancy, but an Uber LLC is exactly what you need if you’re already a driver for the company or are considering it. Filing isn’t too complicated, nor does it cost a lot of money, especially if you use our service.
Most importantly, an LLC offers protection for your personal assets, which means that they’re typically safe should your LLC face a lawsuit. This will enable you to drive for Uber with more peace of mind.
Sign up with Business Anywhere today to use our free business registration service. You’ll get one year of our registered agent service free!
