They Want My Tax Id #

Business By sweetcakes Updated 5 Oct 2008 , 2:17am by indydebi

sweetcakes Posted 10 Sep 2008 , 3:27am
post #1 of 18

I get an order for a load of cookies for a kidney dialasys center but they want my tax id number to pay me. Im all legal, but all i have is a sales tax and use permit. BTW, Im in TX. Is my tax id number my SSN? I dont have an EIN as im a one person business so dont need it.

17 replies
sari66 Posted 10 Sep 2008 , 3:31am
post #2 of 18

You can use your ssn for it but why not get an ein? they're easy to get online or by phone. I'm a solo as well and got one.

JoAnnB Posted 10 Sep 2008 , 4:28am
post #3 of 18

Definitely get an EIN. That way you can protect your ssn.

KoryAK Posted 10 Sep 2008 , 6:36am
post #4 of 18

If it doesn't bother you, you can use the SSN instead of the EIN until (if) you get one.

aztomcat Posted 10 Sep 2008 , 7:03am
post #5 of 18

Yep SSN works fine. My husband used his for years for his construction biz.

indydebi Posted 10 Sep 2008 , 10:35am
post #6 of 18

I was in the same boat ... when I was a sole proprietor with no employees, I wasn't required to have an EIN. One place said I had to have one. I gave them my SS#. They said they HAD to have an EIN. I told them I didn't HAVE to have one, to use my SS#. Also told the little accounting clerk who was being a big "B" about it, to check with her CFO and if HE had a problem with it, HE could call me and I'd explain it to him, too.

Side story .... I had applied for one once and technically had one, but never used it because I was advised it wasn't needed and I 'shouldn't' use it. When I changed to an LLC, the attorney had to cancel the first one (since it was a sole proprietor) and reapply for one for the LLC. There was a fee to do this.

If you're planning to LLC or anything later, you might consider this before you apply for an EIN "just because".

SweetConfectionsChef Posted 10 Sep 2008 , 12:41pm
post #7 of 18

Unless the order is over $600 or they have already spent $600 with your company you are not required to give them your SS# or EIN. Once a company has spent $601 with your company the have to turn it in to the IRS. It's a way the IRS can keep tabs on your earnings. And you will end up getting a 1099 at the end of the year. Also, there is a form you fill out and must sign....if they just want you to give them this info over the phone I'd tell them to take a flying leap.

DebBTX Posted 10 Sep 2008 , 12:43pm
post #8 of 18

In this day and age of identity theft, I would try to do things that would protect important numbers, like the SSN.

-Debbie B.

momtobtb Posted 10 Sep 2008 , 12:51pm
post #9 of 18

I'm a sole proprietor and just got an EIN the other night. I also work at my Police Department and the less you use your SSN the better. I got my EIN on the IRS website in less than 5 minutes.

CarolAnn Posted 10 Sep 2008 , 1:08pm
post #10 of 18

Daft question maybe but what is EIN and LLC?

indydebi Posted 10 Sep 2008 , 1:20pm
post #11 of 18

EIN: Employer Identification Number. Note: EMPLOYER. Needed by the Fed Govt when you have employees.

LLC: Limited Liability Company (just short of a Corporation but more than a sole proprietor)

jmt1714 Posted 10 Sep 2008 , 3:19pm
post #12 of 18

http://www.irs.gov/businesses/small/article/0,,id=98350,00.html


from the IRS: An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. Generally, businesses need an EIN. You may apply for an EIN in various ways, and now you may apply online. This is a free service offered by the Internal Revenue Service. You must check with your state to make sure you need a state number or charter.

maggiev777 Posted 10 Sep 2008 , 3:39pm
post #13 of 18
Quote:
Originally Posted by DebBTX

In this day and age of identity theft, I would try to do things that would protect important numbers, like the SSN.

-Debbie B.




I could not agree MORE. Giving out your personal SSN is honestly asking for trouble. Definitely look into an EIN instead.

cakelady15 Posted 10 Sep 2008 , 7:16pm
post #14 of 18

I am a sole proprieter and have no employees so I thought I didn't need an EIN. I tried to sign up with a wholesale company and they required it so I went to the IRS website and got one. It took about two minutes and the letter instantly popped up on the screen with the number. My bank also required it for a business checking account. It was really easy to get. I wouldn't recommend using your social security number because of identity theft problems.

Just a side note but if the company is paying for the order they may need the number to prove to whoever handles their budget that you are a legitimate business and not someone's relative just making extra money. Some businesses are funny about thaticon_smile.gif

acookieobsession Posted 10 Sep 2008 , 8:36pm
post #15 of 18
Quote:
Originally Posted by cupcake900

Just a side note but if the company is paying for the order they may need the number to prove to whoever handles their budget that you are a legitimate business and not someone's relative just making extra money. Some businesses are funny about thaticon_smile.gif




I think it is more that they have to report on their taxes certain info. I give my ein out often to large corps that use me for events. I was scared the first time....but it is really no big deal. Just remember to report the income on your taxes too...

Julia

springlakecake Posted 4 Oct 2008 , 3:25pm
post #16 of 18

okay so I just ran into this today. I just received my LLC paperwork back this week. So I go to the IRS to sign up for my EIN number when I read, as you all said, that I don't need one since I am the only member. But it said if I would prefer to file as a corporation I can fill out form 8832. If I go ahead and do this, how does it affect my taxes later? Or does it? I am very confused. I don't want to screw this up.

tblide Posted 5 Oct 2008 , 1:51am
post #17 of 18

Also most banks will require an EIN if you want to open a business checking account. Just another reason to have one, along with your identity protection. Alot of companies that you can buy wholesale from will require both your sales tax number and your EIN number.

indydebi Posted 5 Oct 2008 , 2:17am
post #18 of 18
Quote:
Originally Posted by tblide

Also most banks will require an EIN if you want to open a business checking account. Just another reason to have one, along with your identity protection. Alot of companies that you can buy wholesale from will require both your sales tax number and your EIN number.




Let me say this again ... if you are a Sole Proprietor, you are not required to have an EIN. My Sole Proprietor business bank account did not have an EIN number .... they used my SS#. If you are a Sole Proprietor and someone says you HAVE to have an EIN, then you are talking to the wrong person, who is just filling out a form and his/her boss told him/her to "get the EIN" without knowing what it is and why it's required and who is required (or not required) to have it. If a bank says you need an EIN, then it sounds to me like they are not recognizing Sole Proprietorships as a "real" business, and I probably wouldn't want to do business with a bank like that.

If you prefer NOT to use your SS# as your Sole Proprietor ID#, then that's totally different and up to you whether you get an EIN or not.

If you're not sure, make an appt with a business attorney and get his advice, based on the type of business you are and/or are going to be.

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