# LLCs



## SeahawkTim (Apr 29, 2014)

I've seen a few people on the boards mention that they created an LLC for their driving services to defer tax costs and such. Can anyone explain what the process is, how much it costs, and how it benefits them? I haven't had a chance to put any money away for taxes yet, and am not looking forward to filing them next year knowing what the self-employment tax is going to look like.


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## myuber (Apr 18, 2014)

LLC not only helps with tax 's but in law suits they only can go after the business not your personal accounts or property.. here in phoenix it's 85. Plus a 3 week ad in the paper.. Every state is different as cost wise.. I recommend Everyone get one if you drive for uber


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## justin_uberX_seattle (May 8, 2014)

SeahawkTim said:


> I've seen a few people on the boards mention that they created an LLC for their driving services to defer tax costs and such. Can anyone explain what the process is, how much it costs, and how it benefits them? I haven't had a chance to put any money away for taxes yet, and am not looking forward to filing them next year knowing what the self-employment tax is going to look like.


I've looked into this quite a bit, considering your name is "seahawk tim" is it safe to say your in Washington? Washington State is $200 to file for an LLC and you can do it on the Secretary of State.gov website. It was a pain in the ass to find so use (this) to get straight there.

I talked to a CPA at "Moss Adams" and he highly recommends becoming an LLC...he went on to say your tax filing status won't change much. The main reason is protection if you get sued. With an LLC the person suing you cant go after your personal assets. After you have done that, get yourself a business license (here), and set your DBA (doing business as) whatever you would like to call your business. DBA is really for banking purposes which leads me to the next step. Go into your local favorite bank/credit union and use the LLC/biz stuff you have set up to get yourself a business account. This is the best way to keep your Uber cash separated and neat, while your at it get a biz savings and start setting aside 20-25% of your income. I've been told it's wise to file quarterly.

Finally, track ALL your mileage. I usually just track what I drive when I'm "online." Next year when you go to file you will either deduct your mileage or your expenses(insurance, maintenance, fuel, car payment ETC), whichever is greater. You can deduct certain percentages of the previous mentioned based on use. IE if I drive Friday and Saturday, ill deduct about 35% of those expenses. More then likely your mileage will be more so keep track of both.

I don't claim to have all the answers, this is just info I have gather from professionals who know their stuff. Hope it helps!


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## SeahawkTim (Apr 29, 2014)

Actually, I'm in Los Angeles. I'm just a native of Gig Harbor.


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## LookyLou (Apr 28, 2014)

SeahawkTim said:


> Actually, I'm in Los Angeles. I'm just a native of Gig Harbor.


GO HAWKS!!!!!!!!!!


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## justin_uberX_seattle (May 8, 2014)

SeahawkTim said:


> Actually, I'm in Los Angeles. I'm just a native of Gig Harbor.


sweet! well i hope my info helped


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## Dave (Apr 12, 2014)

I have an LLC in CA. I formed it through legalzoom.com and it was a very easy process. It cost around $400 through them, but the kicker is that CA has a $865/year filing fee for having an LLC. I would highly recommend it though just for the liability protection against you personally. Just make sure you do it right though. Get an EIN (employer identification number) through the IRS, it's like a social security number for your business, and open a separate bank account in your business's name and have your driving money deposited in there. This shows that your business is truly separate from you, and shows the IRS that you're for real and they are less likely to audit you.


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## Jeeves (Apr 10, 2014)

I thought the $865 filing fee was more of a minimum tax? As opposed to additional tax.


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## Dave (Apr 12, 2014)

The $865 is additional, but in a sense it is a minimum tax as you still have to pay it even if you have zero reported income. Jerry Brown needs money to build his train to nowhere, haha.


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## Jeeves (Apr 10, 2014)

That tax has been around before Jerry Brown. Maybe from his first term? Wow I was certain it was a minimum LLC tax not a flat tax.


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