One of the top food delivery services in the country is DoorDash. It enables clients to place food orders from their preferred neighborhood eateries and have it delivered right to their door. Can you run a DoorDash business, though? You can, is the response. Delivering meal orders to consumers is an option that DoorDash provides for people to make money. Using DoorDash as a platform, you can operate as an independent contractor or launch your own business.
You must establish your company as a sole proprietorship or an LLC if you choose to use DoorDash to launch your own business. The simplest type of business structure is a sole proprietorship, in which case the owner is individually responsible for all debts and obligations incurred by the company. An LLC, on the other hand, offers tax flexibility as well as personal liability protection for the business owner.
You must complete a W9 form if you work with DoorDash as an independent contractor. Businesses utilize a W9 tax form to ask for an independent contractor’s taxpayer identification number (TIN). It is used to notify the Internal Revenue Service (IRS) of payments made to the contractor.
DoorDash drivers are regarded as self-employed for tax purposes and are in charge of covering their own taxes. As a result, you will need to maintain a record of your income and outgoing costs and file your taxes appropriately. If you are an independent contractor, DoorDash will send you a 1099-MISC form at the end of the year that will include your annual profits.
Gas is one of the most expensive expenses for DoorDash drivers. The good news is that petrol expenses can be deducted from your taxes. This means that the cost of gas used for work-related purposes can be subtracted from your taxable income. To ensure that you can support your claims, you must keep meticulous records of your mileage and gas costs.
In conclusion, DoorDash might be a fantastic opportunity for anyone looking to make money by fulfilling meal delivery requests for clients. Using DoorDash as a platform, you can operate as an independent contractor or launch your own business. You must register your new company as a single proprietorship or an LLC if you decide to launch it. If you are an independent contractor, you will also need to complete a W9 form. DoorDash drivers can deduct their petrol costs from their taxes and are in charge of paying their own taxes.