EIN vs SS# question

Ming the Merciless

Ming the Merciless

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I am pretty sure the answer is obvious but I thought that I would ask my fellow Blackhatters. I am starting to bank with different affiliates and now I need to provide either my SS# or an EIN. I realize that the EIN is easy to get. The question is, is it "safer" to use a EIN? I don;t really feel comfortable providing my SS#. Also, as far as taxes go, will there be a difference in using the two? Are you more under the IRS radar with an EIN?
 
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Not an expert on this, but an EIN will be safer as you won't be revealing your SSN. However, I believe doing so will mark you as a sole proprietor and you may be subject to self-employment tax, estimated tax payments, etc. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Sole-Proprietorships
 
You're not going to be under the radar either way. When you make $600 or more with any one network, they send you and the IRS a 1099 of your earnings. Period.
I've been filing as a sole proprietor on a schedule c for years. All my networks have my SS#.

The only reason you need an EIN would be if you are incorporated, or have employees. There are some other unlikely reasons but I don't think they'd apply to you.
Just give them your social, it's no big deal.
 
loclhero said:
Just the opposite IMO. See what I posted above ^^
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Not quite sure what you're saying is the "opposite." Your post doesn't really relate to my post. It's regarding a different aspect.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employment-Tax-(Social-Security-and-Medicare-Taxes)#2

Likely will need to pay self employment tax in estimated tax payments. May as well have an EIN.
 
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If you have a corporation or LLC that is taxed as a corporation then provide the EIN. If you claim your IM revenue on your tax returns directly (perhaps using an LLC taxed as a disregarded entity, or sole proprietorship ) then you should provide your SSN. This is pretty well explained in the instructions of IRS FORM W-9.
 
loclhero said:
You're not going to be under the radar either way. When you make $600 or more with any one network, they send you and the IRS a 1099 of your earnings. Period.
I've been filing as a sole proprietor on a schedule c for years. All my networks have my SS#.

The only reason you need an EIN would be if you are incorporated, or have employees. There are some other unlikely reasons but I don't think they'd apply to you.
Just give them your social, it's no big deal.
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So I should not be concerned giving out my social? Some of these affiliate companies seem a little shady IMO. I saw in another thread that you worked with adultdatelink in the past. this is one of the affiliates that I am working with. You said they were pretty slimey (from what i remember the post said). Anyways, long story short, I should not be concerned?
 
artizhay said:
Not an expert on this, but an EIN will be safer as you won't be revealing your SSN. However, I believe doing so will mark you as a sole proprietor and you may be subject to self-employment tax, estimated tax payments, etc. www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Sole-Proprietorships
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artizhay said:
Not quite sure what you're saying is the "opposite." Your post doesn't really relate to my post. It's regarding a different aspect.

www.irs.gov/Businesses/Small-Busine...nt-Tax-(Social-Security-and-Medicare-Taxes)#2

Likely will need to pay self employment tax in estimated tax payments. May as well have an EIN.
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What you said was that in getting an EIN, it will mark him as a sole proprietor which is not true. A sole proprietor doesn't need one. By default a corporation does.
 
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monstersquad said:
So I should not be concerned giving out my social? Some of these affiliate companies seem a little shady IMO. I saw in another thread that you worked with adultdatelink in the past. this is one of the affiliates that I am working with. You said they were pretty slimey (from what i remember the post said). Anyways, long story short, I should not be concerned?
Click to expand...

We all have our own comfort zones. Yes some of these companies seem (and probably are) shady. Adultdatelink is IMO but I guess I just never figured they would be slimy in regards to anything other than dating so they have my social. If you are concerned then you should get the tax id instead.
 
loclhero said:
We all have our own comfort zones. Yes some of these companies seem (and probably are) shady. Adultdatelink is IMO but I guess I just never figured they would be slimy in regards to anything other than dating so they have my social. If you are concerned then you should get the tax id instead.
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I appreciate the advice. I will do some more research on my own and talk to a CPA. last question: In getting an EIN will I have to pay more taxes/fill out more documents at the end of the year?
 
A tax ID number, EIN, whatever, is used for the sole purpose of reporting taxes, and in some cases credit history.

An SSN is used for much more.

Yes it's safer to provide an EIN. They way in which you are taxes makes no difference. Taxes have to do with the way your business is formed. S-corps do not have pass through taxation options that c-corps and llc's have. Make sense?

EIN gives you more leeway, in that you can make a new EIN on the irs website in about 5 minutes. (legally)

You only have ONE ssn.
 
monstersquad said:
I appreciate the advice. I will do some more research on my own and talk to a CPA. last question: In getting an EIN will I have to pay more taxes/fill out more documents at the end of the year?
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So it basically seems that you have two concerns/questions:
1 - You're leery of giving your SS to some networks.
A valid concern IMO

2 - What are the tax ramifications, if any, of using one over the other.

I'm not an accountant so I can't answer that but can only use my experience of being a sole proprietor since 1999. My assumption is that even if you get the EIN, you will file as a sole proprietor using a standard schedule C. If that's the case, I don't believe there would be any difference in taxes paid. You'll still be reporting to the IRS, the earnings from the 1099's you get, you'll still be deducting all of your
expenses as well so the net result is the same.

I would say your only issue really should be your concern about your ss.
 
Furious George said:
EIN gives you more leeway, in that you can make a new EIN on the irs website in about 5 minutes. (legally)
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I just saw this on the .gov website.
What purpose is there to even have more than one EIN? I don't get that.
 
loclhero said:
So it basically seems that you have two concerns/questions:
1 - You're leery of giving your SS to some networks.
A valid concern IMO

2 - What are the tax ramifications, if any, of using one over the other.

I'm not an accountant so I can't answer that but can only use my experience of being a sole proprietor since 1999. My assumption is that even if you get the EIN, you will file as a sole proprietor using a standard schedule C. If that's the case, I don't believe there would be any difference in taxes paid. You'll still be reporting to the IRS, the earnings from the 1099's you get, you'll still be deducting all of your
expenses as well so the net result is the same.

I would say your only issue really should be your concern about your ss.
Click to expand...

Very concise explanation. I really appreciate it!
 
I can confirm, there is ZERO difference in the way taxes are paid between a tax ID and an SSN. People who live in the USA who don't have a social security number have to get a tax ID to report taxes, and are taxed at the same rate. (one example)

However, you could pay yourself a salary and bonuses from the company you create and not file on schedule c, if the company is profitable. There's nothing wrong with that. Of course, paying a salary could cause it to have a loss.... ah, I hate the tax system in this country.
 
loclhero said:
I just saw this on the .gov website.
What purpose is there to even have more than one EIN? I don't get that.
Click to expand...

Let's say you've been banned by google, or paypal... or (insert one of the many names) affiliate network. When you register a new account, they will be able to link you to other accounts based on many things.... cookies, address, name.... but if you make a new tax ID and form a new business (which could be a DBA) you essentially have a fresh start with all of these companies. It's perfectly legal.

The IRS wants you to pay taxes more than anything else. They make it easy to get a new tax ID for your new business. Don't think you can do that anonymously. It's anonymous to... paypal, but not to the IRS.
When form SS-4 is filled out (only the IRS sees this) you better have your real, bona fide info on there.

Privacy laws are the greatest in Delaware. That's why half of the companies traded on wall street are from Delaware.
 
Well, I got my EIN number the other day. I feel so professional now. Lmao. It literally took all of 5 minutes on the irsgov site. Got it instantly. Thanks again to all for the advice.
 
monstersquad said:
Well, I got my EIN number the other day. I feel so professional now. Lmao. It literally took all of 5 minutes on the irsgov site. Got it instantly. Thanks again to all for the advice.
Click to expand...

Just keep in mind, a sole person can only get one EIN. You can make as many companies as you wish, and keep getting new EIN's... one for each company. Perfectly legal.
 
Where did you get this idea from? "I believe doing so will mark you as a sole proprietor" If you have not experienced it please do not comment on it. This could cause a lot of people aggravation to the nth degree
 
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