- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
As an independent contractor, you must report your income on Schedule C of Form 1040, Profit or Loss from Business. You must pay self-employment taxes on net earnings exceeding $400. For those taxes, you must submit Schedule SE, Form 1040, the self-employment tax. If you are self-employed, you should make quarterly estimated tax payments on Form 1040-ES, Estimated Tax for Individuals.
If you’re a sole proprietor, you must have an EIN to:
- hire employees
- have a Keogh or Solo 401(k) retirement plan,
- buy or inherit an existing business that you operate as a sole proprietorship
- incorporate or form a partnership or limited liability company, or file for bankruptcy.
Also, some banks require you to have an EIN before they’ll set up a bank account for your business.
If none of these situations apply, just use your SSN.