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I am a self employed contractor. I use my social security

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I am a self employed...
I am a self employed contractor. I use my social security number to file taxes. I recently hired an employee. As I understand it, I have to get an EIN number in order to report withholdings for the employee. Can I still file taxes under my social security number, or do I have to switch to the EIN number?
Submitted: 1 year ago.Category: Tax
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7/19/2016
Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 1 year ago
Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,387
Experience: Certified Public Accountant
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As a sole proprietor you would still file the income and expenses on Schedule C of your 1040.

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Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 1 year ago

You would include the EIN on the Schedule C.

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Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 1 year ago

Do you have any plans of incorporating or forming an LLC?

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Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 1 year ago

I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today.

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Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 1 year ago

Please let me know if you have any other questions or need clarification. I am happy to help.

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,235
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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HI,

...

I have a different answer.

...

You MUST continue to use oyur Social Security number, unless you bring on another OWNER.

...

Although the EIN is needed for payroll taxes, you must use your Social Security nnumber for your personal tax filing (including the Schedule C), and for any W-9's that payors may need from you as well.

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

Here's the IRS guidance on this: https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-companies

...

From there: (I'll underline the pertinent part)

...

"For federal income tax purposes, a single-member LLC classified as a disregarded entity generally must use the owner's social security number (SSN) or EIN for all information returns and reporting related to income tax. For example, if a disregarded entity LLC that is owned by an individual is required to provide a Form W-9, Request for Taxpayer Identification Number and Certification, the W-9 should provide the owner’s SSN or EIN, not the LLC’s EIN.

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

And from a good anecdotal (not authority of law, but very readable) overview by the Attorneys at Nolo.com.

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As a sole proprietorship doing business through an LLC, you do not need a separate EIN number unless you have employees or are required to file excise tax returns.

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By default, owners of single-member LLCs report the business profits and losses from the LLC on their personal tax returns using their own Social Security number or tax identification number.

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Owners of single-member LLCs are not required to have separate EINs because they are not considered employees of the LLC by the IRS.

...

However, if your single-member LLC has other employees you are required to obtain an EIN and file employment taxes.

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

Again, you do NOT use the EIN on your schedule C, you only use the EIN on the 941's for filing quarterly payroll taxes, and for the pay-in of payroll taxes.

Please let me know if you have any questions at all.

...

If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

Otherwise I’m working for no crediting at all here

...

Thank you!

Lane

I hold a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986

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Lane
Lane
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