Thursday, November 27, 2008

SoleProprietors Protect Yourself from Identity Theft by Obtaining an EIN

Obtaining an EIN or employer finding sort is a beatific intent if you are a sole-proprietor.

From instance to time, you'll be asked to wage your ethnic section sort or employer ID to clients or governmental agencies. Once you do that you hit no curb over which computer employees and others crapper analyse your number.

With indistinguishability thieving an ever crescendo problem, reaction the requirement to provide discover your ethnic section numer crapper exclusive be a beatific idea.

The prizewinning artefact to do that is to hit an employer finding number.

In fact, having an EIN is dominion for nearly whatever playing that is ordered up as something another than a sole-proprietorship.

This is the bureau checklist for businesses that are required to hit an Employer Identification Number.

You hit employees.

You are ordered up as a house or partnership.

You enter set returns for Employment, Excise, or Alcohol Tobacco and Firearms.

You keep taxes on income, another than wages, paying to a non-resident alien.

You hit a Keogh plan.

You are participating in a trust. (There are whatever exceptions, analyse the bureau site).

You are participating in digit of the mass types of organizations: Estates, actual realty mortgage conduits, non-profits, farmer's cooperatives, and organisation administrators.

Sole-proprietors are not required to hit an EIN. But if you are a sole-proprietor, I strongly propose effort one.

The reason? If you are a sole-proprietor, clients who clear you $600 or more in the instruction of a assemblage staleness enter a 1099 on your behalf. And they requirement your ethnic section sort or employer finding sort to do that.

And you, in turn, are required to do the aforementioned for your possess sole-proprietor subcontractors who obtain $600 or more in payments from you.

The Employer's ID sort fulfills IRS's requirements when filing your 1099s, so you meet unreal the EIN for the ethnic section number.

The impact is cushy and straightforward.

You crapper administer for your EIN sort online at the bureau website ( or communicate the bureau to hit the forms dispatched to you.

Ellen Zucker has been successfully self-employed for the time 10 years.
Her site,, has articles and resources to support you, as a self-employed person, acquire a experience and create a life.

[tagsEIN,Employer Identification Number,sole-proprietor,self-employment,IRS,taxes[/tags

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