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Question about EIN

6 posts

  1. chuckd

    Joined: March 2006
    Posts: 9

    Hi,

    I have a question about EIN (Employer Identification Number).

    I am set up as a sole proprietor and I am looking to get an EIN, however I have no employees.

    First of all, I want to know if and EIN is the same thing as a Federal Tax ID Number.

    Secondly, if you get an EIN, does that require that you have to file a certain tax form that you normally would not have to fill out if you just used your SSN to do business? If so, is this form required to be completed quarterly or annually.

    I know that you guys are not accountants and that I should speak to an accountant for the exact answer, but I am sure many of you have experience in this. Don't worry, I won't try to hold anyone or the forum liable for anything that might go wrong as a result of your answers. LOL. :D

    Thanks a bunch in advance.
    Posted 3 years ago  |  Login or Register to Reply

  2. pete

    Joined: March 2004
    Posts: 740

    As a sole prop. without employees you do not need an EIN. Either your SSN or EIN qualify as a Federal Tax Number, so you can use your SSN anywhere you need to fill in a number.

    If you are uncomfortable giving out your SSN, then you can get an EIN, but it is not required until you actually hire someone and need to withhold and submit taxes.

    Other than the form to get the number there is no additional paperwork, as long as you have no employees. If you do hire someone, then you will have to make withholdiong deposits and reports. Without employees, you just use your EIN instead of your SSN on the same forms you are using now.
    Posted 3 years ago  |  Login or Register to Reply

  3. chuckd

    Joined: March 2006
    Posts: 9

    Thanks. And yes, I know I can just use my SSN but there are other reasons why I need to use an EIN instead.

    My main point of interest was making sure I did not have to file a special annual or quarterly for just becasue I have an EIN even though I would have no employees.

    If anyone else has any conflicting info please post and and explain why pete is wrong. I would appreciate it.
    Posted 3 years ago  |  Login or Register to Reply

  4. artbroker

    Joined: June 2003
    Posts: 1,760

    Employer ID Numbers (EIN) - Do You Need an EIN?
    1. IF you have employees
    2. If you operate your business as a corporation or a partnership.
    3. If you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms.
    4. If you withhold taxes on income, other than wages, paid to a non-resident alien.
    5. If you have a Keogh plan.
    6. If you involved with any of the following types of organizations.
    * Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
    * Estates
    * Real estate mortgage investment conduits
    * Non-profit organizations
    * Farmers' cooperatives
    * Plan administrators


    You will need a Sales Tax permit or business license for your state. That is what you will file reports on sales tax collected or exempt, even if it is zero. You must collect tax from sales within your state. Whether online or in person. If you are purchasing for resale, you must give the certificate number to the vendor to avoid the tax. No resale certificate, then pay the tax. When you start selling, you must collect tax from buyers in your state.

    When you have a tax exempt status, you must file tax returns showing what tax you have collected or exempted for others.

    In the old days, we would purchase "blanket exemption certificates" to give to vendors to prove the tax exemption.
    Posted 3 years ago  |  Login or Register to Reply

  5. richspsxparts

    Joined: June 2004
    Posts: 209

    You can apply for an EIN online and get it immediately... free.

    You do not have to file any special taxes because you have an EIN. It doesn't change anything except the fact that you now have an EIN :-) ... if you didn't have to file quarterly taxes before you had the EIN, you won't have to after.

    Rich

    ChuckD wrote:Thanks. And yes, I know I can just use my SSN but there are other reasons why I need to use an EIN instead.

    My main point of interest was making sure I did not have to file a special annual or quarterly for just becasue I have an EIN even though I would have no employees.

    If anyone else has any conflicting info please post and and explain why pete is wrong. I would appreciate it.
    Posted 3 years ago  |  Login or Register to Reply

  6. chuckd

    Joined: March 2006
    Posts: 9

    richspsxparts wrote:You can apply for an EIN online and get it immediately... free.


    Right. And just so everyone knows, there is no need to pay anyone to apply for your EIN. There are many companies advertising that they will get you your EIN. You can see these ads on this very page in the Google AdSense ads. I have seen some charge as much as $99 for it. Hogwash!

    Just go to...

    http://www.irs.gov/businesses/small/art ... 67,00.html

    and you will see near the bottom of the page a link that says "Apply Online Now".
    Posted 3 years ago  |  Login or Register to Reply

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