If you’re looking for ways to make extra money on the side, but haven’t heard of TaskRabbit, this article is a good place to start. We’ll explain the TaskRabbit platform, how to make money as a Tasker, and how to protect yourself with a Limited Liability Company. Read on to learn how to make money on the side and start a TaskRabbit business.
TaskRabbit is a mobile and online platform where you can find local freelancers to perform various tasks. Consumers use the TaskRabbit app or website to hire contractors (called Taskers) to handle deliveries, wash cars, clean houses, and a long list of other services. The company is growing and still expanding into new cities, but it currently offers services in these US areas.
TaskRabbit was acquired by IKEA in 2017 and is the featured service provider for assembling furniture in every US IKEA store. The service is also found in Canadian and UK key markets. Over 140,000 Taskers work for the service, and 60% of them are Millennials. In the US, average earnings are around $35 per hour. The global home service market is expected to grow to over $1.1 billion by 2026 and new consumers hire services like TaskRabbit on a daily basis.
Taskers are independent contractors who perform the tasks requested through TaskRabbit. Since you’re not an employee, you decide when to work, how much to charge, and which tasks you want to perform. How much you earn is up to you. You can earn side income doing things like assembling IKEA furniture, running errands, pet sitting, and over 50 other tasks.
Find other popular TaskRabbit services
After you create a Tasker account, you’ll follow each step to build your profile and verify eligibility. If you qualify to perform your tasks, you’ll be charged a one-time $25 registration fee. The fee is non-refundable, but it’s the only time you’ll pay TaskRabbit. The company collects fees from clients, so Taskers keep 100% of their service charges and tips.
Application reviews vary by city, but the company website states that most Taskers are able to start working within about 4 business days. Note that missing or incorrect information will delay your application, so make sure the details are correct before submitting your application. If you’re approved, you can set your rates and schedule to start getting jobs in the TaskRabbit Tasker app. Check out what other service providers charge to find going rates in your area. The tasking company advises that if you don’t get task invitations, you can adjust your rates, availability, and work area to get more leads.
When you register, you’ll be asked for a checking account and billing address to get paid via direct deposit. TaskRabbit only pays to checking accounts, so prepaid debit, savings, and other accounts aren’t allowed.
According to Compare.com, TaskRabbit workers earn on average just over $100 per month from odd jobs. If you’re looking for a way to earn extra income, you may only have to work a handful of jobs to do so. But it’s quite possible to earn upwards of $150k a year if you have the right skill set and work full-time.
Some of the highest-paying tasks are furniture assembly, moving, and mounting jobs. These tasks require experience and tools, so clients are willing to pay more to get these types of jobs done.
Average rates for popular TaskRabbit services:
Tasks that don’t require much experience are also popular and profitable:
Obviously, jobs that require experience, skills, tools, and/or vehicles are going to make the most money per job. But people need help with all kinds of tasks. So you can still make extra income by accepting more task invitations.
Some tasks like carpentry and electrical work require special certifications and licensing. But the good news is that most TaskRabbit services just require the proper skills and some tools.
All Taskers must meet the following requirements
Even if you don’t have a registered company, the IRS considers you to be “in business” as soon as you collect payment for a product or service. You’re responsible for reporting income and paying tax on your next personal tax return. As of this writing, there are around 23 million sole proprietors in the US, so obviously many businesses operate this way. But there are risks involved that most startups would rather avoid.
The biggest risk with doing business as a sole proprietor is that you can’t protect personal assets in the event of bankruptcy or a lawsuit. TaskRabbit does offer some protection and arbitration to taskers on the job. But their protection is limited and doesn’t cover claims that aren’t between TaskRabbit, their client, and/or you. Remember, you’re not an employee, but your own business. Without a registered company, you are personally liable if someone who’s not a client sues you.
If you’re found to be at fault, your savings, investments, retirement funds, etc. can all be seized to pay any judgments. It only takes one lawsuit to wipe you out (and possibly shut down your business). While millions of small businesses operate as sole proprietorships, they all run the risk of being financially devastated.
LLC is short for the Limited Liability Company business structure. When you form an LLC (or other company types), it becomes its own entity and is separate from you personally. If your business is named in a lawsuit, only the assets belonging to the LLC can be seized to pay out a legal claim. You can form other types of businesses, but most startups choose the LLC structure to make management simple. The top reasons why startups go with the LLC business structure are
Before you sign up with TaskRabbit, you can form a Limited Liability Company (LLC) to protect your personal assets.
Decide which tasks you’ll perform, how much, and when you’ll work. You’ll also need to scan other service providers to find the going rate for your tasks. Here’s the complete list of TaskRabbit services to help you get started.
Pick a unique business name and develop your business identity (brand) to stand out from competitors. A catchy phrase made up of 2-3 memorable words will help clients remember you and return for future business.
If you don’t mind doing the legwork, you can file LLC formation documents with your state. The forms are usually found online, or you can call to obtain them. Each state has its own forms, fees, and requirements, but you can use our state startup guides if you want to file your own LLC paperwork.
If you’d rather leave the heavy lifting to the experts, we can Form an LLC for your TaskRabbit gig anywhere in the US.
You’re almost ready to start working, but there are a few things to do once your company is formed.Businesses are required to be licensed and insured in the state where they operate. Once you take care of the next steps, you’ll be ready to start taking jobs with TaskRabbit.
Once you receive the Articles of Organization for your LLC, you can apply for business licenses and permits in your state. There may also be local and county requirements, so contact business agencies to find out which licenses are required to be a Tasker in your area. You can save time with a comprehensive business license compliance package.
A TaskRabbit business will require various insurance policies. General liability and commercial vehicle policies are usually necessary. You can further protect yourself with a combined liability and property insurance policy (called a Business Owner policy). As your business grows, you may want to hire employees. Workers’ Compensation insurance is also required for companies that employ workers.
Some insurance companies can save you some money by combining policies, so you may want to shop around before making any decisions. Our vendor partners offer free business insurance quotes to help you find the best solutions.
The best way to keep your business and personal finances separate is to open a business bank account. This will help you prevent paying unnecessary taxes, and also give you a clear picture of how your business is performing. You can check with your local bank to see if they offer business banking solutions. Or search the web to find business bank services. You can also review our vendor network to find exclusive pricing and discounts for our clients.
Sign up to become a Tasker here. You do have to sign up with your personal name and social security number so TaskRabbit can perform a background check. But as soon as your account is registered, you can add your business name and banking information to get paid as a business.
There are all sorts of ways to make money on the side. If you’re handy or have experience in just about any area, TaskRabbit is a great platform to connect with clients and build a profitable business. You can put your expertise to work and make as much money as you decide. Many taskers are making great money doing things like package delivery, minor home repairs, cleaning, services, and other popular categories.
You can sign up to be a Tasker as a sole proprietor, but you could be putting your personal assets at risk. Without a registered business, all your savings, retirement accounts, and other assets can be taken to pay off a lawsuit if you lose. The only way to separate your business and personal assets is to form a company.
A Limited Liability Company (LLC) offers personal liability protection without the hassle of complex management or high corporate taxes. If you’re willing to do the work, you can register your own LLC, usually through state websites. We know that starting a business can be a headache, so we offer comprehensive LLC formation packages at affordable prices. All our startup packages come with a free account dashboard, hundreds of free forms, and resources to help you start and grow your business.
If you’re ready to take the plunge, we’re here to help. For a hassle-free experience, you can order an LLC for your TaskRabbit gig online. Also, check out thousands of 5-star reviews and our latest comparison to see why tens of thousands of startups begin with MyCompanyWorks. For more help or information, contact our support team and review our FAQs to get answers fast.
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This entry was posted on Thursday, December 8th, 2022 at 7:33 am and is filed under New Business Ideas, Starting A Business. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.