Operating in significant cities across the United States, Canada, and Australia is the meal delivery service DoorDash. Since its founding in 2013, DoorDash has helped customers place orders with nearby eateries and facilitate deliveries. Because it is privately held, no one can swap shares of its ownership. But is DoorDash a corporation or an LLC?
The company DoorDash is, is the answer. It is registered as a C Corporation and was incorporated in Delaware in 2013. As a result, DoorDash is treated as a separate legal person from its owners and its stockholders are not held personally accountable for any debts or obligations of the business. DoorDash is a company, so it must comply with more rules and formalities than an LLC, but it also has access to more resources and the ability to acquire money by issuing shares.
Will DoorDash issue me with a 1099?
If you have made more than $600 in total revenue from deliveries as a DoorDash driver, also known as a “Dasher,” you will receive a 1099-MISC form at the end of the year. This form is used to compute your federal and state income taxes as well as to report your earnings to the Internal Revenue Service (IRS). You are responsible for paying your own taxes as an independent contractor and are not entitled to employee perks like paid time off or health insurance.
Because you are viewed as an independent contractor, not an employee, if you use Instacart to order groceries, you won’t get a W2 form. However, if you make more than $20,000 and carry out more than 200 transactions in a calendar year, you can get a 1099-K form. This form is used to compute your self-employment taxes and to report your profits to the IRS.
It’s not a sole proprietorship, Shipt. It is a division of publicly traded Target Corporation. Target bought Shipt in 2017, and it now functions independently within the corporation. Shipt is a subsidiary of a bigger company, so it has access to its resources and backing, but it also has its own management team and runs autonomously.
Grocery delivery is the company Shipt’s area of expertise. It has partnerships with significant retailers including Target, Meijer, and Publix and operates in more than 260 markets across the United States. Shipt operates on a membership-based strategy, where clients pay an annual subscription to get free delivery on orders above $35. Shipt leverages a network of independent contractors to conduct its delivery services.
Considering that DoorDash is a business, everybody who works there will be given a 1099 form at the end of the tax year. Customers of Instacart may receive a 1099-K form instead of a W2 form. Target Corporation’s subsidiary Shipt runs an independent grocery delivery service.