If you work-at-home, you may have noticed that organizing your tax returns were a bit messy if you use your own social security number for your online business. If you’re not ready to incorporate or create an LLC, an easier alternative would be to at least sign up for your own Employer ID Number (EIN).
Use your EIN number for signing up with all the affiliate programs and other sites you that normally ask and require a social security # for paying you. Remember that your social security number should be protected all the time, in order to protect your identity, and you shouldn’t use it on the web. Using your EIN number works just like a social security # – yet functioning like a sole-proprietor of your home business. Another plus is that an EIN number appears much more professional as well. You will really feel like you are building your own home business – and not a hobby.
You can sign up for a free EIN number here: https://sa.www4.irs.gov/modiein/individual/index.jsp
Lisa Angelettie
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Thanks for the informative post.. and thanks for adding our comment to your blog. I’ll have to subscribe to your feed so I don?t miss the next post!
Thanks for the informative post.. and thanks for adding our comment to your blog. I\’ll have to subscribe to your feed so I don?t miss the next post!
Hi Lisa,
When you go to that link, they ask if you are a sole proprietor, LLC, etc. so which would I choose if it’s only supposed to “function” like these?
Well if you are charging people for a product or service and do not incorporate, etc. then you are by default a sole proprietor. You could use your social security number as a sole proprietor but you could also file for an EIN for the reasons I stated above.
So when you apply, check sole proprietor. You do not need to file any extra paperwork to function as a sole proprietor.
Much Success C.W. 🙂
I just got approved for one, so this is going to be VERY helpful.
Thanks Lisa!
C.W
You’re welcome C.W.
Cheers!