When providing services via the TaskRabbit platform, you do so as an independent contractor. Furthermore, you are acting as a business entity — usually a "sole proprietor."
What’s a sole proprietor?
A sole proprietor is an individual in the U.S. who runs his/her own business and is self-employed. As a sole proprietor, you’re responsible for the payment of any income taxes (and employment taxes, if you have employees) due on the money you earn from your Clients via TaskRabbit.
How do I set up my business as a sole proprietor?
For Taskers in most states, there aren’t any steps required to set up as a sole proprietor. Generally, if you’re doing business as an independent contractor, and have not registered your business otherwise, then you are a sole proprietor. Please check the requirements of your particular state for specifics. To learn about naming your sole proprietor business, click here.
Depending on the types of services your business provides, you may need to register for business licenses, permits, or zoning, as appropriate. This website provides guidance on these requirements by locality. Additional guidance regarding the requirements of acting as a sole proprietor can be found here.
What’s a business entity?
Alternatively, you may be operating as another form of business entity such as a partnership, limited liability partnership, limited liability company, or corporation when delivering services to your Clients via TaskRabbit. Different filing and registration rules may apply to those entities.
What does it mean to be a sole proprietor or other business entity?
As a sole proprietor or other business entity who uses TaskRabbit to advertise your services and connect with Clients, you are not an employee of either TaskRabbit or any Client to whom you provide services via TaskRabbit. Neither TaskRabbit nor any Clients you provide services to will make any deductions from payments to pay any income tax or Social Security contributions that may be due on the money you earn. All tax payments associated with your business are your sole responsibility.
More information regarding sole proprietors’ tax obligations may be found here: https://www.irs.gov/businesses/small-businesses-self-employed/sole-proprietorships and https://www.ftb.ca.gov/file/business/types/sole-proprietorship.html.
There is no minimum obligation on you providing services via TaskRabbit’s platform, nor are you guaranteed a minimum number of tasks. There’s no restriction on you performing work or services for anyone else, or through any other platform.
Please note, this support center article is informational only and does not constitute legal or tax advice. You are fully responsible for your own business. Please check the rules and laws regarding operating your business in your locality.