Uber and Lyft drivers can cut taxes by forming an LLC and electing S-corporation status, which lets you take earnings as distributions exempt from self-employment tax. You also get liability protection: if a passenger sues, only the LLC's assets are at risk, not your personal belongings.
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If you drive for Uber or you know someone that drives for Uber, then here is something that you might want to consider. Drivers for Uber might want to register LLCs and take advantage of some of the benefits. The first benefit is that you could have the LLC taxed as an S corporation, and if you're working for Uber full-time, then having the LLC taxed as an S corporation could save you a decent amount of money on taxes because it would avoid you having to pay self-employment tax on a significant portion of your money. The second main benefit would be personal liability protections. So if a passenger gets upset with you and wants to sue you, or Uber sues you for violating their terms of service, then they would only be able to go after what the LLC owns. They wouldn't be able to go after your personal assets. Thanks, and follow me for more small business tips.