Introduction to DoorDash
DoorDash is considered an individual business type by the IRS. As an independent contractor instead of an employee, DoorDash won’t withhold any taxes. To file taxes properly, independent contractors receive 1099 forms from the companies they work with.
Starting a Delivery Business with DoorDash
DoorDash enables clients to order food for delivery. You can use DoorDash to start your own delivery business as an independent contractor. Or you can establish a firm such as a sole proprietorship or LLC.
DoorDash Overview
- Founded in 2013 by four Stanford students.
- Expanded across North America raising over $700 million from investors.
- Valued at $1.4 billion in 2018.
During the pandemic, DoorDash took measures to protect customers and couriers. Couriers diagnosed with COVID-19 can get up to two weeks of paid sick leave. Despite some controversies, DoorDash remains fairly safe for workers, customers, and investors.
Business Structure Options with DoorDash
You can establish a sole proprietorship or LLC with DoorDash. A sole proprietorship makes the owner responsible for all debts and obligations. DoorDash is not considered rideshare. It focuses solely on food delivery. Some top rideshare companies are Uber, Lyft, and Via.