I need some help with EIN/SSN/LLC/TIN?

I am a US citizen and have a ssn. Many of the CPA networks want to get my SSN, before they will send me any money. Call me paranoid, but I would prefer to not give it out.

I hear that you can give them an EIN, or something instead?

I've used search, but I'm getting jumbled information about SSN/EIN/TIN/LLC.

Is there anyone that could help me straighten this out?

Thank you very much, in advance!

Here ya go:
http://www.irs.gov/businesses/small/article/0,,id=98350,00.html

As your own entity you are allowed one EIN for any and all sole proprietor business you do. You can obtain one instantly following the link above.

You get a EIN from the IRS. EIN=Employer Identification Number. You can fill out the paperwork on the IRS Web site. You get the EIN right away. It's still linked to your SSN. You have to form a company or plan on forming a company, or be thinking about forming a company. If you fill out hte paperwork for an EIN, you might as well go ahead and file in your state to get a business license. Even though you are one person, you can still be an LLC. Most people prefer becoming an LLC over sole propritorships because you will be held personally liable for your businesses debts as a sole prop.

This is just a start.

If you post specific questions on here, maybe someone will be able to help you out.

figgity said:

Even though you are one person, you can still be an LLC. Most people prefer becoming an LLC over sole propritorships because you will be held personally liable for your businesses debts as a sole prop.

Click to expand...

It's good to note that it is more expensive to operate as a corp or LLC. In a state such as California the minimum Franchise Tax for a LLC is $800 per year, plus registered agent ~$100.

If you don't want to form a company and just want something else besides your ssn to give to the networks does an EIN do the job or not? someone please give a straight answer.

EIN is Employer identification number, you can get it if you register a business.
as long you get fictitious business name and pay annual business tax you can apply for EIN.

not sure your location but here in California city I am - I pay $150/year for business tax, plus of course regular income tax "from profit" but it is common practice for new businesses not to make any profit for 5 years. . As a business you also can deduct many expenses you can not as individual.

you do not have to incorporate to get EIN, as simple sole proprietor you can get EIN, even if you DBA ( do business as ) John Smith- your name.

Even I am in California I will not pay $800 a year but have LLC in Nevada, it is $120 or $150 or so. Plus Nevada has some very nice legal loopholes, protections and is Business oriented . Delaware comes up in discussions as well.
You also have to get registered agent,which will vary but usually around $100 a year or so.

so you do not have to incorporate in the state you are in. But theoretically if you operate (physically conduct business) from any state you either need to incorporate there or incorporate in other state and get foreign/out of state entity.
Lets say you incorporate in Utah as John's jeans and sell jeans to Utah clothing stores, now you want to sell jeans in California, you need to ask permission from California to sell jeans under the name John's Jeans. That could be as bad as incorporating in CA.

Assuming this is internet related, you should have no problems being registered in single location, there are many loopholes.

Getting incorporated is basically,as stated above, a way of forming a separate entity which gives you legal protection and personal assets protection. You business becomes liable, not you. Of course that is in a nutshell, devil lies in fine print.

Getting EIN, even as sole proprietor is a good decision especially helping you get business accounts and separating personal from business finances. Sole proprietor EIN is still linked to your SSN as far the IRS is concerned but you do not need to provide SSN to affl. networks etc. Sole proprietor is personally are liable for the business.


for your situation I think registering a business in your city as sole proprietor and maybe getting a mail box (not P.O) is good decision. You may decide later down the line to incorporate.

hope this helped a bit,
disclaimer ,
I am not a legal representative, so please do your own research and consult a legal council.

good luck

You may go directly to IRS and apply for an EIN without having a business, but I believe you will not be able to receive EIN unless you register a business/fictitious business name and pay annual business tax.

Once you Have EIN you will not need to provide your SSN to the networks.

littleuser said:

If you don't want to form a company and just want something else besides your ssn to give to the networks does an EIN do the job or not? someone please give a straight answer.

Click to expand...

Ok. thank you very much. To put a twist on the question: what can they do (identity theft wise), with a EIN?

Thank you all very much btw, BHW is truly a great forum.