Do I need a separate Tax ID (EIN), or can I just use my Social Security Number?
Many sole proprietors can use an SSN, but an EIN can add privacy and professionalism.
You are filling out forms and not sure if you should share your SSN. You would rather keep personal information private but want to do things correctly.
Many vendors evaluate different business structures, such as Sole Proprietorships or LLCs, to determine which best fits their liability and tax needs. While an LLC is a common choice for asset protection, the specific tax implications depend on individual circumstances. Additionally, many business owners choose to apply for an Employer Identification Number (EIN) from the IRS as a way to identify their business for tax purposes without using a personal Social Security Number. A qualified attorney or tax professional can provide guidance on which entity type is appropriate for your specific goals.
If you want added privacy or plan to grow, apply for an EIN through the IRS website. Keep both numbers handy and use the EIN on W-9s, vendor applications, and payment processor forms. It keeps your business records separate and organized.
Stop Guessing. Start Growing.
Stop waiting until the end of the month to see if you made money. Get instant clarity on every sale, even without Wi-Fi.
LEGAL NOTICE: Information on Vorbiz.net is for educational purposes and not a substitute for professional legal, tax, or financial advice. Read Full Disclaimer