Author Topic: EIN vs Social Security Number  (Read 1083 times)

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Offline jdartagnanlove

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EIN vs Social Security Number
« on: February 04, 2015, 02:39:22 PM »
I am trying to decide if I want to apply for a business tax ID or continue using my social security number as my "business." I am working on a start-up photography business and currently don't have any employees other than myself but I can forsee needing at least one other person in the future. What do most professional photographers do regarding tax IDs and why? Thanks in advance for your thoughts.

Offline Todd Muskopf

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Re: EIN vs Social Security Number
« Reply #1 on: February 04, 2015, 02:47:53 PM »
Have you formed an LLC yet?  Get the EIN after you form the LLC.  Both of them give a little distance between your private world and your business.

Offline Darren Cassese

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Re: EIN vs Social Security Number
« Reply #2 on: February 04, 2015, 09:19:48 PM »
There is no reason NOT to get an EIN.  Get one. 
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Offline Sbuchanan

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Re: EIN vs Social Security Number
« Reply #3 on: February 04, 2015, 09:47:05 PM »
Get the EIN/Tax ID no. The less you put your personal SSN out in the world the better.

On a related note, get an accountant. They are worth their weight in audits (or more accurately, lack thereof.)  My accountant easily pays for himself every year - from time involved in prep, to advice on ways to minimize tax liability, to questions like yours, it's money well spent.

Offline jdartagnanlove

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Re: EIN vs Social Security Number
« Reply #4 on: February 05, 2015, 11:08:28 AM »
Thank you for the responses! Very helpful.

Offline Donna Underwood

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Re: EIN vs Social Security Number
« Reply #5 on: February 05, 2015, 11:09:00 AM »
I don't have an EIN and don't plan to get one until or if I hire employees other than myself. OR, as Dave says, I have substantial personal assets. I don't shoot weddings so my chances are not as great for possibly being sued.

http://www.daveramsey.com/index.cfm?event=askdave/&intContentItemId=6064

http://www.irs.gov/Help-&-Resources/Tools-&-FAQs/FAQs-for-Individuals/Frequently-Asked-Tax-Questions-&-Answers/Small-Business,-Self-Employed,-Other-Business/Form-SS-4-&-Employer-Identification-Number-%28EIN%29/Form-SS-4-&-Employer-Identification-Number-%28EIN%29-1

Offline Darren Cassese

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Re: EIN vs Social Security Number
« Reply #6 on: February 05, 2015, 08:58:47 PM »
Another reason to get one would be if you ever contract out to someone in any way.  You can provide your tax ID for a W-9. 

It takes a few minutes to get one and then once you have it, that's that...
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