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The Magic Cafe Forum Index » » Tricky business » » Federal Tax ID # (0 Likes) Printer Friendly Version

magicman02
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How many of you guys who are pros use a federal tax ID # for your business, or do most of you use your Social Security #? I've been using my SS# since I started my business. Do you think it is time I get a tax ID #?
Father Photius
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El Paso, TX (Formerly Amarillo)
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If you are working as a sole proprietor, you should continue to use your SS#. The tax ID number is for corporations. If you form a corporation, you should get one. It differentiates the corporation's earnings and tax information from your personal information, which is identified by your SS number.
"Now here's the man with the 25 cent hands, that two bit magician..."
magicofCurtis
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Los Angeles
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Photius, I believe there is more to the question...

Here is a link about FED #
IRS Info
Scott O.
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Midwest
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I use a tax ID because I don't want to send my personal SS# out to every company that needs a W-9. There are other reasons, but that's a good one right there.
Do not become weary in doing good, for at the proper time you will reap a harvest, if you do not give up. Galatians 6:9
magicman02
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I guess I should get one since I work with a partner who is my assistant for all my shows. I don't want to send out my personal SS # to everyone, either.
wizardofsorts
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Chicago, IL
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Photius, I disagree. You can get (and I have) a FEIN for a sole proprietorship. I use it because I have to fax invoices with a tax ID number to companies, and I have no idea who has access to their fax machines. I don't want some nogoodnik to come by and snitch my SS#, name and address, and sell it on the street.

Magicman02, get one. They are free, and it will make you feel more secure.

Edd
Edd Fairman, Wizard of Sorts is a corporate magician available for your next trade show, hospitality suite, client luncheon, or company event. http://www.wizardofsorts.com
g0thike
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Call IRS
(800) 829-4933

Press 1, Press 1
magicofCurtis
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Los Angeles
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You guys are silly or lazy... I posted the link that explains all the details.....

IRS EIN Link
Steven Steele
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Hesperia, California USA
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Curtis is right on. The only thing I would add is that, unless you meet the specific criteria outlined, the IRS will refuse to issue you a Federal EIN as they are concerned about running out of numbers. I applied for one about six years ago, and they asked me the questions outlined in Curtis's link and then told me to use my SS No. I shared my concerns, but they'd have none of that. So, that's what I still use.
Kevin Viner
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San Diego, CA
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Steven,

I am a sole proprietor and have been issued an EIN. You can definitely do it.
wizardofsorts
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Chicago, IL
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The reason you choose on the form is "for banking reasons." Trust me, you want one.

Edd
Edd Fairman, Wizard of Sorts is a corporate magician available for your next trade show, hospitality suite, client luncheon, or company event. http://www.wizardofsorts.com
James Munton
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Dallas, TX
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I am an LLC and have a Federal Tax ID. There are several benefits, but really the best person to answer these questions is Courtney Springirth, who is a member of the Café and quite possibly the best CPA on the planet. He's probably busy getting ready for tax season, but if you are out there, Courtney...
cgscpa
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Ashton, MD
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James - thank you very much for the kind words. Hope all is well with you and the family as you settle into Texas. Our loss here will definitely be Dallas's gain.

Regarding Federal Tax ID#s: You can use your social security number as a sole proprietor but for the privacy concerns already mentioned a tax id# is much better. You will also need one once you have employees so it's just as convenient to get one now. You can apply for a number online at the IRS website and have your number in a matter of minutes.

If you are a single member LLC the IRS has issued new guidelines published on their site. You will actually need TWO federal ID#s due to a quirk in the payroll tax handling between Federal and state.

Check out the link provided by magicofCurtis above for more information.
magicone
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Doylestown, PA
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I have a FEIN as a sole proprietor but now I've been advised that a LLC will help protect me beyond my 1 million group liability insurance policy I have through the I.B.M.

Anyone else concerned about "an incident" that would cause you to be sued into the poor house?? I've never had an issue but these days people are sue happy.
honus
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Quote:
On 2008-02-27 01:12, Steven Steele wrote:
Curtis is right on. The only thing I would add is that, unless you meet the specific criteria outlined, the IRS will refuse to issue you a Federal EIN as they are concerned about running out of numbers. I applied for one about six years ago, and they asked me the questions outlined in Curtis's link and then told me to use my SS No. I shared my concerns, but they'd have none of that. So, that's what I still use.

Same thing happened to me, about eight years ago in my case. (This was for a legal business, not an entertainment one.) If they've changed that policy, that's a good thing.
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