If this is your first visit, be sure to
check out the FAQ by clicking the
link above. You may have to register
before you can post: click the register link above to proceed. To start viewing messages,
select the forum that you want to visit from the selection below.
As long as you are not an "employer" of anyone else then it is not required. Already waited on the phone for 20 minutes with the IRS and got that answer. Now on the flip side of that coin you may be required to file certain documents that must have your tax ID which without an EIN would be your SS#. So it is up to you with the possiblilty of your SS# being out in public.
I will be a sole proprietor lawn company. I will be registering my business in my town as a DBA. Do I need a EIN (employee identification number)?
I would highly recommend not doing a sole proprietership, due to the fact that you personally hold the risk. If something were to happen, someone could sue you for everything you own. I would recommend a LLC(Limited Liability Corporation), because the risk is all held by the business and not you personally. As far as I knew, you need an EIN number for an LLC, possibly not a sole proprietership. You also need an EIN to take out a business bank account and to pay taxes as well I believe.
All you will have to do is use your SSN in place of the EIN. If you do not have employees you do not need a EIN. This is for a sole proprietor only. You can open bank accounts without an EIN.
Now if you are operating as an LLC then you MUST have a EIN because basically as far as the law is concerned your business is a living breathing entity of it's own. You are only a share holder and employee.
Now if you do form an LLC then NEVER pay a personal expense with the company check or credit card EVER. If you do you will lose the corporate veil of protection if sued. Instead write a check to yourself as a payroll advance.
If I were you, I would get an EIN. It is safer than using your ss # and it's easy to get. go to www.irs.gov and search it. You can do it online.
Also, even if you are a LLC you can still be personally sued. So don't think that just because you are not a sole proprietor that you won't be held personally liable because the person suing can sue you as a person and the company.
I'm a sole proprietor and have had no problems. As long as you have insurance and be carefull then you should be ok.