Supporters from outside of the city would say United, but 90% of the supporters from the city would most definitely say Everton. Reds living in Liverpool would much rather lose a game to United than to Everton
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Their main rival is Everton being their a stones throw from one another, which is where the term "Mersyside Derby" is coined, being their both from the Mersyside. Not to mention their steeped history during the birth of LFC back in the 1890's. Manchester United is also their next biggest rival with the two northern English cities being big competitors during the imperial development times. This competitive spirit exists to this day, in a football sense. Also there's no love between them and Nottingham Forrest given the history of the Hillsborough incident. There's also some rivalries between them and bigger London names like Arsenal and Chelsea for some nice competition over the years.
Everton are Liverpools local rivals, although Manchester United are regarded as Liverpools main competitive rivals.
everton are just a street away from them but they are alsofirse rivals with manu
I am not a football fan at all but I can tell you that question is a never-ending argument among those who are, which suggests the two teams are as good as each other!