Social Security Number vs EIN (Uber/Lyft Tax Question)

[acvegasUSA]

In Nevada State a State Business License (Corporation or LLC Filing) is required for Uber as a driver.
Uber classifies its drivers as “independent contractors”. Every year, Uber must file by law IRS Form 1099-MISC and/or 1099-K with the IRS and my state tax agency reporting how much Uber paid me. This applies if I was paid over $600 during the year from Uber.

1. If I organize as a Nevada Limited Liability Company - (as a S LLC)
Does Uber report on IRS Form 1099-MISC and/or 1099-K to the IRS me as an Uber driver any income made over $600 either my Social Security Number or EIN (Employer Identification Number) Number?

2. If I organize as a Nevada Limited Liability Company - (as a C LCC)
Does Uber report on IRS Form 1099-MISC and/or 1099-K to the IRS me as an Uber driver any income made over $600 either my Social Security Number or EIN (Employer Identification Number) Number?

 

[Taxing Matters]

In Nevada State a State Business License (Corporation or LLC Filing) is required for Uber as a driver.
Uber classifies its drivers as “independent contractors”. Every year, Uber must file by law IRS Form 1099-MISC and/or 1099-K with the IRS and my state tax agency reporting how much Uber paid me. This applies if I was paid over $600 during the year from Uber.

1. If I organize as a Nevada Limited Liability Company - (as a S LLC)
Does Uber report on IRS Form 1099-MISC and/or 1099-K to the IRS me as an Uber driver any income made over $600 either my Social Security Number or EIN (Employer Identification Number) Number?

2. If I organize as a Nevada Limited Liability Company - (as a C LCC)
Does Uber report on IRS Form 1099-MISC and/or 1099-K to the IRS me as an Uber driver any income made over $600 either my Social Security Number or EIN (Employer Identification Number) Number?

A single owner business may organize as a LLC or a corporation in Nevada. You may also operate as a sole proprietor. There is no such thing as a S LLC or C LCC (or LLC). Nevada requires Uber drivers to have a business license, which is different from organizing as a corporation or LLC. You do not have to organize as a LLC or corporation to be a Uber driver. You can operate under just your own name (sole proprietor) if you choose. But whether you operate the business as a corporation, LLC, or sole proprietor you that business must have a business license. You may get more information on the business license from the Nevada Secretary of State here:
http://nvsos.gov/sos/licensing/state-business-license

Under federal tax law, by default a single member LLC is disregarded and viewed as a sole proprietorship of the owner unless you file an election to have the LLC taxed as a corporation. Thus, you end up reporting your income from the LLC just as you would as a sole proprietor on Schedule C of your Form 1040. Either way, Uber will send you a Form 1099-MISC for your earnings.

The income of a corporation may be taxed in one of two ways. By default, a corporation is taxed on its own earnings. These are known as C corporations in language of tax law. However, a corporation may file an election with the IRS to be treated as a S corporation. The earnings of a S corporation are not taxed to the corporation itself but instead flow up to the tax returns of the S-corporation owers, which then gets reported on Schedule E of Form 1040. If Uber pays the corporation directly (e.g. issues checks in the name of the corporation) then it will not be required to provide the corporation with a Form 1099-MISC.

Whether or not you get a Form 1099-MISC, you must report all your income, including tips, that you earn as a Uber driver on your federal income tax returns. Failure to do so can result in expensive civil penalties and the possibility of criminal prosecution for tax evasion. For this reason, getting a 1099 for the income ought not bother you because you are going to report all your income anyway, right?

 

[acvegasUSA]

A single owner business may organize as a LLC or a corporation in Nevada. You may also operate as a sole proprietor. There is no such thing as a S LLC or C LCC (or LLC). Nevada requires Uber drivers to have a business license, which is different from organizing as a corporation or LLC. You do not have to organize as a LLC or corporation to be a Uber driver. You can operate under just your own name (sole proprietor) if you choose. But whether you operate the business as a corporation, LLC, or sole proprietor you that business must have a business license. You may get more information on the business license from the Nevada Secretary of State here:
http://nvsos.gov/sos/licensing/state-business-license

Under federal tax law, by default a single member LLC is disregarded and viewed as a sole proprietorship of the owner unless you file an election to have the LLC taxed as a corporation. Thus, you end up reporting your income from the LLC just as you would as a sole proprietor on Schedule C of your Form 1040. Either way, Uber will send you a Form 1099-MISC for your earnings.

The income of a corporation may be taxed in one of two ways. By default, a corporation is taxed on its own earnings. These are known as C corporations in language of tax law. However, a corporation may file an election with the IRS to be treated as a S corporation. The earnings of a S corporation are not taxed to the corporation itself but instead flow up to the tax returns of the S-corporation owers, which then gets reported on Schedule E of Form 1040. If Uber pays the corporation directly (e.g. issues checks in the name of the corporation) then it will not be required to provide the corporation with a Form 1099-MISC.

Whether or not you get a Form 1099-MISC, you must report all your income, including tips, that you earn as a Uber driver on your federal income tax returns. Failure to do so can result in expensive civil penalties and the possibility of criminal prosecution for tax evasion. For this reason, getting a 1099 for the income ought not bother you because you are going to report all your income anyway, right?

Of course just as you do (reporting taxes) .....it's the only honest thing to do.