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.

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.

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

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

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

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".

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.

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'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.

Daft question maybe but what is EIN and LLC?

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)

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.

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 that

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.

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.