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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55716
Experience:  29 years of experience as a tax, real estate, and business attorney.
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I am beginning to care full-time for my grandson and my daughter

Customer Question

I am beginning to care full-time for my grandson and my daughter and son-in-law will be paying me through their flexible spending account from his work. Are we better off in our tax liability if I get a EIN as a Sole Proprietor or they get one as my employer as I am their babysitter? If you can't answer this question, can you tell me how I would figure it out?
Submitted: 6 years ago.
Category: Tax
Expert:  Richard replied 6 years ago.

Good afternoon. You don't need a separate EIN as a sole proprietor baby sitter. You only need to file an Assumed Name Certificate for doing business as some babysitting company name. Then, you will want to issue them invoices under this business name; they will issue you a 1099 at the end of the year; and you will report all this on your Schedule C.



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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.


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Customer: replied 6 years ago.
The Flexible Spending Account folks are telling my son-in-law that he needs to provide them an EIN in order to get them to send me the monthyly payment.
Expert:  Richard replied 6 years ago.

The EIN you can provide as a sole proprietor can be your own SSN. If they want a separate EIN, you can get one instantly and simply on-line through the following website....,,id=98350,00.html