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Giving out SS# if you're blackhat?

Discussion in 'CPA' started by shadowpwner, Apr 20, 2009.

  1. shadowpwner

    shadowpwner Regular Member

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    So I'm just starting out in the business, and I'm learning A LOT. Thank you for creating this forum.

    So I was wondering about the ramifications of providing a CPA network with a social security number if you're going blackhat. To me, it doesn't seem too safe. (And I'm only 17, hehe.)

    Any ideas and perhaps links to CPA sites that don't have any ID needed would be greatly helpful.
     
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  2. sinewave

    sinewave Senior Member Premium Member

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    If you want to get paid and you reside in the US, you need an ID that can be verified by the IRS. If you don't wish to give out your personal SS#, you can create a DBA (Doing Business As), LLC (Limited Liability Corporation) or other Corp to obtain an EIN # from the IRS to use instead.

    Bear in mind that you may have some trouble doing business as a minor, since you can't be held responsible in court for some of your actions. I'm not a lawyer though.

    The DBA option might be a good option for you, since in most states you don't need to be incorporated to get one; it can be tied to your personal ID & SS# as far as the IRS goes and it will operate as a distinct entity to anyone apart from the IRS. You may need to get one of your parents or another adult relative to assist you, depending upon the requirements of your state.
     
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  3. tonlilaz

    tonlilaz Executive VIP Premium Member

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    get a ein (employer identification number) http://www.irs.gov/businesses/small/article/0,,id=102767,00.html
     
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  4. sinewave

    sinewave Senior Member Premium Member

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    I'm pretty sure you need a business license first, whether it be for a DBA or otherwise. At least I did with business entities in both New York and Delaware. I guess it may work very differently in other states.
     
  5. Pofecker

    Pofecker Senior Member Premium Member

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    Never, ever, give out your SS# when doing business online. Get a LLC, Corp, DBA, whatever.

    Keep your SS# private at all costs.
     
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  6. tonlilaz

    tonlilaz Executive VIP Premium Member

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    i was able to get one quickly...no business license...
     
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  7. sinewave

    sinewave Senior Member Premium Member

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    Ok, good to know. Do you mind revealing in which state you are operating? If yes, no worries.
     
  8. enrikole

    enrikole BANNED BANNED Premium Member

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    that is like one of the best answered thread i have seen. Some quality advice.

    Perhaps it should be made sticky, since we have a lot of minors here who probably have the same question.
     
  9. fulcanelli

    fulcanelli Jr. VIP Jr. VIP

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    I can say that you don't need a license everywhere for an EIN. At least I've been able to get online with no problem without a registered business. I've had one for a long time now with not government letters coming my way or anything like that.
     
  10. sinewave

    sinewave Senior Member Premium Member

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    This is good information. I've had various EINs for years, but the states in which I *operate* required the business license so I'm preconditioned to have it.

    At least that's how I understood the requirements, anyway. Thanks everyone for answering.
     
  11. luizeba

    luizeba Regular Member

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    I'm 14, so you're a old-granpa for me =P
     
  12. oldenstylehats

    oldenstylehats Elite Member Premium Member

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    In many states, you can start a DBA for free, very easily, if you use your last name in the business title. I know this is the case in Pennsylvania and I don't imagine we are the only state. Go to your bank and ask to speak with someone about business banking services. They'll be able to hook you up with a lot of information and potentially even setup the DBA on the spot. EIN is the next step, then you're golden.

    In short, keep your information locked down legally. Fraud isn't cool.
     
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  13. LoboRsxS

    LoboRsxS Regular Member

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    I never knew that :(
     
  14. sinewave

    sinewave Senior Member Premium Member

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    Ya know? It would be great if those whom have contributed to this thread would post in the business/tax area as well. I started a thread after the Uptownbulker fiasco/fraud to try to fill the vacuum in terms of incorporation advice, but my advice is limited to my own experience, my CPA's advice and my attorney's advice.

    It would be good to hear everyone's experience and advice there as well.
     
  15. vivalafeva

    vivalafeva Jr. VIP Jr. VIP Premium Member

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    I got a EIN and Im in in NY. All I used was my SS to get it.
     
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  16. angelas111

    angelas111 Jr. VIP Jr. VIP Premium Member

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    you can get an ein instantly on irs.gov

    they ask you a bunch of questions and you can probably get one tonight. you don't have to have a "dba" or anything to get it.
     
  17. sinewave

    sinewave Senior Member Premium Member

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    Interesting. My first NYS dba (circa 1995) ostensibly required that I spend a few hours in the lower Manhattan New York Supreme Court House waiting for a stamp on my application.

    Thanks for the update.

    Edit: Now I do most of it online or by phone, of course. But I didn't know that one didn't need to have a business license prior to applying for an EIN. Thanks for the enlightenment.
     
    Last edited: Apr 20, 2009
  18. domainplayer

    domainplayer Junior Member

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    best thread ever!

    How old do you need to be to get an EIN?
     
  19. sinewave

    sinewave Senior Member Premium Member

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    If you do that, how is your new entity classified?
     
  20. bizedozie

    bizedozie Registered Member

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    Your new entity will be classified as a sole proprietor. Your EIN just means you are using that number for business purposes. It helps the government"big brother" differentiate your assets.