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Jonathan Tierney
Jonathan Tierney, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 318
Experience:  Tax Accountant at Praxair, Inc.
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I'm beginning a robust freelance business and have an llc

Customer Question

Hi. I'm beginning a robust freelance business and have an llc registered. should I get and use an EIN or my social security #?
If I use an EIN, does that make filing taxes each year more complex/expensive?
thank you!
Submitted: 1 year ago.
Category: Tax
Expert:  Jonathan Tierney replied 1 year ago.

Hi, my name is ***** ***** my goal here is to provide you with the most complete and accurate answer possible.

If you are sole owner of the LLC and you do not make any special election to be taxed as a corporation, then the LLC is treated as a disregarded entity and all the LLC’s activity would be reported directly on your personal tax return (Schedule C mostly). You are not required to get an EIN unless the LLC actually hires employees, as you are allowed to use your Social Security number as the businesses identifying number. You can get an EIN number if you want and there would be no real added complexity, as the EIN number would simply be added on the Schedule C. You might want an EIN number so you do not have to give out your Social Security number whenever a business asks you to complete a W-9 (needed to issue your business a 1099).

I hope this answers your question. Please let me know if I can clarify anything or answer any additional questions, and I would greatly appreciate positive feedback. Thanks, Jonathan

Customer: replied 1 year ago.
Thank you. Is it safe to say then, if I have no employees, that it's really up to me, and that I may as well get the EIN? I kinda like the idea of not using my SS# ***** time a business I freelance with has me send in a W-9. That's a bit smarter to use the EIN, right?
Expert:  Jonathan Tierney replied 1 year ago.

Yes it is up to you. EINs are not too secretive as you can find many company's EIN numbers through publicly available information.

Customer: replied 1 year ago.
OK, well what about for the business checking account I'm opening? SSN or EIN? What's the better move?
Expert:  Jonathan Tierney replied 1 year ago.

If you want the checking account in the LLC's name then you would need to give the bank an EIN number (the bank would know the difference).