# Have you gone to the extreme of a separate checking account for rideshare earnings ?



## Dammit Mazzacane (Dec 31, 2015)

The idea behind this is that you can keep some separation and treat rideshare like a straightforward business venture.
Has anyone done this?


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## Fozzie (Aug 11, 2018)

I have Uber earnings going to one business checking account, and Lyft earnings going to another business checking account. It makes it easier to keep track of how much I make on each platform.

At the end of each shift I cash out, then transfer funds from both accounts to a third business account which I use for common expenses such as gas, maintenance costs, license fees, car washes, tolls, etc.


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## WindyCityAnt (Feb 24, 2019)

They want to track you on your spendings with the card.


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## MadePenniesToday (Feb 24, 2017)

I did almost the same as Fozzie. I only did one account since I only had less than 50 lifetime Lyft rides. Any expenses related to my car came out that account.


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## B - uberlyftdriver (Jun 6, 2017)

for me its easier to have a debit account and savings just for my businesses
i transfer a small monthly paycheck to my family account for house bills

uber goes to checking to pay myself and all business expenses
Lyft goes to savings 

if you do not run this deal like a business you will never know where you stand during the month/year 
this is not "extreme" just organized and is necessary if you are full time.

if you are a part timer or occasional driver it might not matter but i would still compartmentalize all transactions from these companies.


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## Trafficat (Dec 19, 2016)

I don't see the point. Everything goes to 1 checking account for me. I keep spreadsheets to keep track of earnings and expenses for different businesses, and how much cash I need on hand for each business. I file multiple schedule C each year. I have a federal EIN (but no employees) and state and county business licenses.

My businesses are run directly under me as the sole proprietor so I do not need to worry about upsetting stock holders by taking all of my profits from one business to use for personal luxuries or to expand an unrelated venture.

Accounts are such an abstraction. I see no difference between having multiple imaginary spreadsheet accounts to partition money versus multiple bank accounts. The main difference is if you have mutliple bank accounts, you are just letting the bank handle that abstraction for you. To me that just means more hassle dealing with 3rd parties.

If it wasn't for the fact we are paid by direct deposit, checks, and credit cards, and if it was not for internet transactions and cash back on credit/debit card purchases, I would be just as happy with zero bank accounts and zero cards and just keeping a vault for cash.

The banks seem like scum to deal with. They always change the terms in 300 page documents they e-mail out every month. Then they charge you fees based on new rules they buried in those terms. Interest rates for savings accounts are basically non-existent. I've had thousands of dollars in a savings account for over a decade and made maybe $1-2 a year in interest, meanwhile the bank has tried to charge me various fees on multiple occasions due to bank error or BS term changes, and getting these charges reversed means waiting on hold for hours and dealing with robot tellers and incompetent humans. I closed my savings account because contesting BS charges was costing me more in time and money than the trivial interest they paid out.


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## 5☆OG (Jun 30, 2019)

i dont think its necessary. everything that comes in from uber is easily identifiable and i can just pull down the numbers from deposits made.


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## Mkang14 (Jun 29, 2019)

Seems like a lot of work. Just have all $ deposits set up with my bank account.


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## Seamus (Jun 21, 2018)

Dammit Mazzacane said:


> The idea behind this is that you can keep some separation and treat rideshare like a straightforward business venture.
> Has anyone done this?


I have an LLC set up so I have an entirely separate business account that all gig income and expenses pass through. Totally separate personal and business banking.

Also, because it is a legal LLC my deposits from gig app companies are through an EIN number and not a personal ss#.


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## Syn (Jun 30, 2017)

I have one account for my full time job and another account at the different bank for rideshare account. I don't even have a debit card for rideshare account. That way I can make sure that I (or more importantly - my wife) don't spend any of it. My gas, maintenance and tax expenses come from my full time job account.


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## MiamiKid (May 24, 2016)

Fozzie said:


> I have Uber earnings going to one business checking account, and Lyft earnings going to another business checking account. It makes it easier to keep track of how much I make on each platform.
> 
> At the end of each shift I cash out, then transfer funds from both accounts to a third business account which I use for common expenses such as gas, maintenance costs, license fees, car washes, tolls, etc.


Smart business and best practices. Spot on.



Dammit Mazzacane said:


> The idea behind this is that you can keep some separation and treat rideshare like a straightforward business venture.
> Has anyone done this?


Absolutely do it with my income properties. Two separate LLC's with multiple accounts.

Considered setting up an LLC for rideshare. However, not doing near the hours I used to.

But, will say it works wonders from both the. financial organizational aspect to asset/legal protection.


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## Amos69 (May 17, 2019)

Yes. I do not co-mingle monies from my different businesses. Accountants hate that. IRS hates that.


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## The queen 👸 (Jan 2, 2020)

I have a capitol one 360 debit card and all Uber and Lyft money goes there. I use the card for my trips and vacation only .


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## DriverMark (Jan 22, 2018)

I've had a Chase checking account for a very long time where my Domino's $$$ always went. All my driving $$$$ now goes there and is separate from my full time job $$$$. Keeps my earnings/expenses for Ride Share separate (gas, maintenance, etc).


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## Cary Grant (Jul 14, 2015)

I've always kept my rideshare business separate from my other businesses and from my personal accounts. I don't comingle.


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## Amos69 (May 17, 2019)

It appears my friend that Extreme is not the right phrase.

Common sense
Legally correct
Business like
Like Lambo told ya.

Outside of sex, Commingling is always bad.


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## GearHead600 (Feb 13, 2020)

My only "job" is RS-Driving! But, I DO have a savings account that I save an exact percentage of my income for my tax responsibility! I usually don't like to make recommendations since everyone has a different tax situation but, my "general" recommendation would be to "withhold" between 25%~30% of your paychecks for your tax responsibility/liability! Once you figure it out pretty well you can also then "hold" more or less depending on whether you "want more money now/up front", or whether you want the "savings" of withholding more (that you can 'give back to yourself' come tax season)!


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## PlayLoud (Jan 11, 2019)

I've been banking at Chase for a while. I had an old BofA checking account that I was stupidly paying monthly maintenance fees ($12) on for a while due to no longer having a direct deposit going to it (or the minimum balance). So, when I started driving Uber/Lyft, I had the funds transferred to that checking account. This brought it above the minimum balance, so that ended the fees. It's money that I have yet to touch. I'm saving for flight training to get a private pilot license, so all my rideshare money has a specific purpose.

I just opened an Ally Checking and Savings account. A few minutes ago, I changed my information on Uber/Lyft to deposit into the savings account. I'm also transferring my earnings from the BofA checking to the Ally Savings account. I might as well earn the 1.6% interest. The money is just sitting in the account, and will be for at least several more months.

Once I'm satisfied the direct deposit is working correctly for both Uber and Lyft (to the Ally Savings), I'll close my BofA Checking account.

So, yes. From the beginning of my rideshare driving, I have been putting my earnings into a separate account.


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## ANT 7 (Oct 14, 2018)

I didn't think that clicking the mouse a few times on my bank's website to open a new account was considered extreme.

You don't commingle funds for tax and legal reasons, quite simple and straight forward actually.


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## Dekero (Sep 24, 2019)

I use a Chime account for all my Rideshare payouts so I can keep track.


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## 1.5xorbust (Nov 22, 2017)

The monthly fees would be more than the earnings.


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## Ritainky (Feb 27, 2020)

Seamus said:


> I have an LLC set up so I have an entirely separate business account that all gig income and expenses pass through. Totally separate personal and business banking.
> 
> Also, because it is a legal LLC my deposits from gig app companies are through an EIN number and not a personal ss#.


What's the purpose of setting up an LLC, in relation to Uber driving?


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## Seamus (Jun 21, 2018)

Ritainky said:


> What's the purpose of setting up an LLC, in relation to Uber driving?


If you are a sole proprietor LLC then their are limited benefits. Some decide the benefits to be worth it and some would argue it isn't worth it. Mine was set up before Rideshare for another side business so Rideshare was an add on to it. Not going into great detail but in general:

Advantages

Allows you to open a Business account with Banks and other financial institutions. This allows for a very clear line of demarcation between your business and personal finances, revenue and expenses. All revenue can pass through your EIN.
There are some liability protections afforded to your personal assets in the case of "Business Disputes". I.E. civil actions not involving negligence .
There are other small benefits.

Major Limitation

If you are a simple sole proprietor LLC it will not protect you personally from lawsuits or claims that involve Your "Negligence".


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## Rockocubs (Jul 31, 2017)

Dammit Mazzacane said:


> The idea behind this is that you can keep some separation and treat rideshare like a straightforward business venture.
> Has anyone done this?


Called Gobank no checks through but who writes checks anyway.


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## 197438 (Mar 7, 2020)

My wife and I have an LLC, and we deposit all of our gig income to its bank account. The LLC leases the car from my wife to use for Uber driving, with the rate based on ZipCar's rates ($7.75/hour and an annual $70 fee, fuel and maintenance included). The LLC also subleases space in our home for its office, and pays both of us a monthly stipend for phone usage. I am not, and do not want to be, an employee of Uber. An LLC's income is essentially taxed as personal income. My wife gets taxed on half my Uber income, but she expenses the fuel and maintenance and the LLC expenses the lease.


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## Legalizeit0 (Jul 26, 2017)

Accounting is a non-issue, do you get a separate account for every job you get?

The only thing I do different is with my Lyft earnings, They are the only thing that goes on my Uber debit card, it pays for my gas and food while I’m on the road since Lyft is only about 15% of my total earnings, it works out well.


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## TomTheAnt (Jan 1, 2019)

I opened a Capital One 360 Checking account just to deposit my rideshare earnings. Not for accounting etc. purposes, really, as I only drive PT. We do the rest of our banking with Bank Of America. For now.


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## Rich2nyce (Jan 25, 2016)

Uber card/account and lyft card/lyft direct account for me. Dont have to worry when I'm getting paid on lyft anymore and uber I cash out when I'm done for the night. Not much to track and no fees unless I use a atm


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## _Tron_ (Feb 9, 2020)

Dammit Mazzacane said:


> The idea behind this is that you can keep some separation and treat rideshare like a straightforward business venture.
> Has anyone done this?


Not at all extreme. And, not absolutely necessary but I use seperate accounts for rideshare income. The account is for combined U/L income, tied to a debit card to pay the bills this this income is tasked for. My stock broker (Fidelity) allows customers to have an unlimited number of accounts (including checking) for no charge.


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## Dammit Mazzacane (Dec 31, 2015)

Rockocubs said:


> t who writes checks anyway.


I do, but beside the point, I thought Uber requires a debit card on file for payment deposits?
(Are there debit card accounts that link to something other than checking accounts? I don't know.)


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## Rockocubs (Jul 31, 2017)

Dammit Mazzacane said:


> Rockocubs said:
> 
> 
> > t who writes checks anyway.
> ...


 they do and i have a checking account just no checks to write


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## Dammit Mazzacane (Dec 31, 2015)

Good to know...!


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## mbd (Aug 27, 2018)

Yet to check any of the deposits....hopefully it is deposited, if not I am doing this for free 😛


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## ChrisD82 (Jul 8, 2020)

Seamus said:


> I have an LLC set up so I have an entirely separate business account that all gig income and expenses pass through. Totally separate personal and business banking.
> 
> Also, because it is a legal LLC my deposits from gig app companies are through an EIN number and not a personal ss#.


I'm already a driver using SSN. In the process of starting LLC. Can i just change my w-9 with each rideshare to business EIN? Also, will rideshares now ask for additional business insurance? What should i expect after forming llc?


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## Seamus (Jun 21, 2018)

ChrisD82 said:


> I'm already a driver using SSN. In the process of starting LLC. Can i just change my w-9 with each rideshare to business EIN? Also, will rideshares now ask for additional business insurance? What should i expect after forming llc?


No they won't expect business insurance. I have had an llc before I ever did rideshare so when I signed up for all the gig work I was able to set it up that way from the start. I'm not sure what the process of changing is with gigs but it should be as simple as sending in a new w9 with the EIN and explain to them what you are doing. They are used to people having LLC's and EIN numbers.

With the EIN and the LLC paperwork you can set up a business bank account and keep everything separate. That makes things easier for tracking your expenses without commingling your personal stuff.

Good luck.


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## roxoz (Jul 2, 2020)

Dammit Mazzacane said:


> The idea behind this is that you can keep some separation and treat rideshare like a straightforward business venture.
> Has anyone done this?


I have two accounts...

1. Main account, this is where the funds from U/L get deposited to. I pay for my car, insurance, maintenance, registration, business licenses, cell phone, vehicle depreiciation, and any other rideshare related expenses.

2. My personal account... What's left over after I pay bills from the main account, gets deposited here.

I just like the separation of personal vs. business. If you wanna succeed at this, you have to treat it like a business. To the extent possible, you should also pay at least $0.15/mile each month towards the principle of your auto loan, to reduce the depreciation cost when turning the vehicle in for a new one.

I have a lot of experience creating custom databases, and to manage things, I created one using filemaker pro. Below are a couple screenshots of layouts. It's a lot easier to manage, run reports, and analyze data.


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## FLKeys (Dec 27, 2018)

I guess I like to complicate things. I have multiple checking, money market, and savings accounts. It works for me. I use Microsoft Money to manage all my accounts and investments.

Primary job money goes into 4 accounts, 2 checking and 2 savings.
Uber/Lyft money goes into one money market account.
I do several other self employed jobs, and each one has its own checking or money market account.

1 of my savings accounts is just that a savings account. The other savings account is used to hold money for my IRA account. This way the first business day of each year I can max out my IRA contribution and get the benefit of the return on my investments the whole year. I put enough money in that account every week from my regular job to have enough saved up come January next year to do the same thing again.

I use one checking account for fixed expenses that I have. Put enough of my pay check in there each week to take care of all those expenses. The other checking account is my daily expense and fun fun money account.

All of my bank accounts are free, I pay no fees on any of them. There are still plenty of banks out there that offer free accounts. My accounts are spread out over 3 different banks.


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## Who is John Galt? (Sep 28, 2016)

Dammit Mazzacane said:


> The idea behind this is that you can keep some separation and treat rideshare like a straightforward business venture.
> Has anyone done this?


Sounds a bit radical. Separating a business income and expenses from personal expenditure!

Perhaps best to leave this a couple of years 'til we reach grade 4.

.


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## SpinalCabbage (Feb 5, 2020)

I have a separate online banking account for gig-economy earnings, eBay sales, et cetera.


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## 197438 (Mar 7, 2020)

ChrisD82 said:


> I'm already a driver using SSN. In the process of starting LLC. Can i just change my w-9 with each rideshare to business EIN? Also, will rideshares now ask for additional business insurance? What should i expect after forming llc?


Log onto your driver account and edit the personal info to change your bank account and EIN. Very easy. Your first week of work will pay the startup costs for your LLC. As an LLC, you are still taxed as personal income, so filing taxes is no different than being sole proprietor. Get basic biz liability insurance ($500/year more or less) in case a pax sues you for something not covered by your driver's insurance. You should already be carrying commercial driver's insurance. I paid NOLO online for the process of creating the LLC. Then the state fees/taxes run another $1000. My city also requires a Biz License.

My wife and I own the LLC 50:50, so she gets taxed on half my 1099 income. Spreads out the income and minimizes our tax burden because she doesn't work much (and we are not married through a governmentally recognized method, so we can't file taxes jointly). We both use the LLC for all of our contractor income, whether Uber or another source. The LLC leases our cars from us, leases our our home office, and reimburses us for half our phone costs. We make a modest profit from the office rent and car lease as a means for transferring some of the income to our wallets. By reimbursing expenses, paying rent to ourselves, and keeping tips, we never have to distribute profits from the LLC, and the LLC uses those profits to invest for future income (rental property and a brokerage account with dividend-paying stocks).

In CA, where I live, the LLC also nullifies AB5 because that ill-conceived law is only for individuals. AB5 does not prevent a corporation from being a contractor. Lamest law since Prop 13.


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