Individual or Sole Proprietor?

[CanonGlenn]

I've made some sales through my SmugMug pro account, however I can't get paid unless I submit my W9 info. I'm confused on whether I should use "Individual" or "Sole Proprietor" as my filing status.

I have a website (www.whitelensphoto.com) however it's not registered as a business name, and I don't have an EIN.

Sorry if this has been asked before, but nothing turned up on a search. Everyone seems to be asking about Sole Proprietor vs. LLC.

What would you guys recommend?

[FlyingPhotog]

There must be subtle legal differences with which I'm not familiar but I've always considered "Individual" and "Sole Proprieter" to be pretty much the same thing (at least as compared to being legally Incorporated or an LLC.)

You might have to drop a note to SmugMug management asking for come clarification.

My experience has been that a W9 or I-9 form is for independant contractors and freelancers. These are what I always filled out for my broadcast clients as a freelance technician.

[tracknut]

I agree with Jay, though if I had to guess, I'd guess that "individual" is for folks that aren't really running a business and are just selling a pic once in a while, whereas "sole proprietor" would apply to anyone actually running a photography business as a sole proprietorship. As far as taxes go, there's not a whole heck of a lot of difference between the two.

Dave

[seaside]

With the Individual and Sole Proprietorship there really is no legal distinction between the owner and the business itself. Profits and losses are handled via your personal tax returns. Any type of Corporation including LLC files a separate business return.

A sole proprietor has some liability in that if you are sued your personal assets are at risk. With a Corp. any lawsuit is limited to corporate assets. A Co. basically protects the individuals assets from being touched.

[Mike R]

I operate as a Sole Proprietor and use my SS number, an EIN is not needed (in CT) Exposure Manager sends me a 1099-Misc form (Miscellaneous Income) each year.

[CanonGlenn]

Thanks all for the advice. I was pretty sure there was no difference between the two as far as taxes are concerned (the W9 even has one checkbox for Individual/SP), but I was wondering what to select when I go through the SmugMug form.

SmugMug says very explicitly that they cannot help when it comes to this stuff.