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magicman02 Veteran user 304 Posts |
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 #?
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Father Photius Grammar Host El Paso, TX (Formerly Amarillo) 17161 Posts |
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..."
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magicofCurtis Inner circle Los Angeles 2545 Posts |
Curtis Lovell II
http://www.CurtisLovell.com http://www.MagicofCurtis.com www.facebook.com/curtislovellii Los Angeles, California - U.S.A. |
Scott O. Inner circle Midwest 1143 Posts |
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
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magicman02 Veteran user 304 Posts |
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.
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wizardofsorts Special user Chicago, IL 935 Posts |
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
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g0thike Special user 722 Posts |
Call IRS
(800) 829-4933 Press 1, Press 1 |
magicofCurtis Inner circle Los Angeles 2545 Posts |
Curtis Lovell II
http://www.CurtisLovell.com http://www.MagicofCurtis.com www.facebook.com/curtislovellii Los Angeles, California - U.S.A. |
Steven Steele Chief of Staff 1868 Posts |
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.
Coram Deo
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Kevin Viner Loyal user San Diego, CA 203 Posts |
Steven,
I am a sole proprietor and have been issued an EIN. You can definitely do it.
Warmest regards,
Kevin Viner Corporate Magician in Los Angeles, CA | Magician in San Diego | Magician in Orange County, CA | |
wizardofsorts Special user Chicago, IL 935 Posts |
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
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James Munton Inner circle Dallas, TX 1199 Posts |
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...
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cgscpa Elite user Ashton, MD 447 Posts |
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 Veteran user Doylestown, PA 351 Posts |
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 Veteran user 354 Posts |
Quote:
On 2008-02-27 01:12, Steven Steele wrote: 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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