Sole Proprietorship / DBA Question

Just a quick question.

For those of you who are set up as an SP / DBA with a business license from your county, are you using your own ein (i.e. Social Security Number) for tax purposes? If so, are you concerned at all with giving this information out with regards to identity theft, etc?

I think a lot of us are set up this way, but someone I know brought up this point and was just wondering what the consequences would be. I haven't had to give out my ein so far.

nicksan wrote in post #14735335
Just a quick question.

For those of you who are set up as an SP / DBA with a business license from your county, are you using your own ein (i.e. Social Security Number) for tax purposes? If so, are you concerned at all with giving this information out with regards to identity theft, etc?

I think a lot of us are set up this way, but someone I know brought up this point and was just wondering what the consequences would be. I haven't had to give out my ein so far.

You can get an actual employer-type EIN from the feds and use that even if you are a sole proprietor. The feds don't really care if you actually have employees at the moment you apply.

Not much to add, RDKirk nailed it.

I didn't want to use my SSN for my business for the reasons you list.

I use my SSN for my business. The only people who ever ask for it are large companies who require you to fill out a W9. If they do more than $600 in business with you, they are required to report that income to the federal government. Some companies (most publishing companies) require to have it on hand for any job you do with them.

I'll never fax over a tax form though, I'll either email it and follow-up with a phone call to confirm confirmation, or send it certified mail. That way I can ensure that the right people have my tax information.

nicksan wrote in post #14735335
Just a quick question.

For those of you who are set up as an SP / DBA with a business license from your county...

Just to pick a nit on terminology... you're implying here that somehow a Sole Proprietorship is equivalent to a DBA. Not the case. A DBA is what any business type uses if it wants to use a different name than it's legal name. So a DBA can be equally used by a SP, LLC, S Corp, C Corp, etc.

Dave

tracknut wrote in post #14735968
Just to pick a nit on terminology... you're implying here that somehow a Sole Proprietorship is equivalent to a DBA. Not the case. A DBA is what any business type uses if it wants to use a different name than it's legal name. So a DBA can be equally used by a SP, LLC, S Corp, C Corp, etc.

Dave

So I guess I meant to say a photographer who's operating as an SP and Doing Business As a fictitious name? I admit I am a little hazy on the terminology

In any event, I'm thinking about getting a separate ein for the business just for security reasons. Just wanted to know if that's a common thing. It looks like a good idea.

JacobPhoto wrote in post #14735589
I use my SSN for my business. The only people who ever ask for it are large companies who require you to fill out a W9. If they do more than $600 in business with you, they are required to report that income to the federal government. Some companies (most publishing companies) require to have it on hand for any job you do with them.

I'll never fax over a tax form though, I'll either email it and follow-up with a phone call to confirm confirmation, or send it certified mail. That way I can ensure that the right people have my tax information.

I pretty much only shoot weddings, so I am trying to figure out under what circumstances I would ever have to give out my SSN. I haven't had to yet, and if I really never have to, then this won't be an issue.

Still, it just sounds like a better idea to get a separate ein.

On the fence about this.

nicksan wrote in post #14736002
So I guess I meant to say a photographer who's operating as an SP and Doing Business As a fictitious name? I admit I am a little hazy on the terminology

No worries

Dave

So can any of you think of when I would be required to submit my SSN as a wedding photographer?
I just can't think of a situation where I would need to do that.

I shoot dogs, thought it's gotta be similar to weddings. Nobody's ever asked me for an SSN other than the folks who want my taxes. I don't have an EIN.

I was thinking possibly vendors for whom I have a resale certificate, but they want a sellers permit number, not a SSN/EIN.

Dave

That's what I thought. The only reason I brought this up was because I was talking to someone about all of this and he brought up the point about not giving out SSN for security reasons.

But if I am not handing it out anyways, then why bother getting an ein for the business? Maybe just to keep things nice and separate from my personal stuff?

I have to admit, I am not that great at keeping track of things!

nicksan wrote in post #14736380
That's what I thought. The only reason I brought this up was because I was talking to someone about all of this and he brought up the point about not giving out SSN for security reasons.

But if I am not handing it out anyways, then why bother getting an ein for the business? Maybe just to keep things nice and separate from my personal stuff?

I have to admit, I am not that great at keeping track of things!

Wedding album companies and print companies I use require my EIN for their professional discounts. That along with vendors I order supplies from. It proves I am a legal business. Insurance requires my EIN, the county tax collector requires my EIN, the state requires my EIN, and my bank requires my EIN. When I shoot for other companies and they issue me a 1099, guess which number I give them? Could I use my SS number? Sure, but how much do you trust any company with that information? It is really a no brainer.

cory1848 wrote in post #14737115
Wedding album companies and print companies I use require my EIN for their professional discounts. That along with vendors I order supplies from. It proves I am a legal business. Insurance requires my EIN, the county tax collector requires my EIN, the state requires my EIN, and my bank requires my EIN. When I shoot for other companies and they issue me a 1099, guess which number I give them? Could I use my SS number? Sure, but how much do you trust any company with that information? It is really a no brainer.

Well, most of them require either the EIN or the state tax ID, so someone without an EIN who didn't wish to use his SSN could use the state tax ID.

Thanks guys.

Yeah, it was just a matter having the option of keeping my SSN out of things if I can help it, and it looks like I can just get an ein for the business and pretty cheaply at that. This way everything is separate, including bank accounts, etc.

The only album company that required an EIN was Finao, at least the ones I opened up accounts for. Supplies are really a non-issue for me.

But yeah, I agree. Probably a good move just to get a separate ein.