@Kate714 wrote:
Thank you!
So, I wouldn’t have to do any quarterly filing of self employment taxes? Just continue like I have been with my Schedule C every year?
The tax system is pay-as-you go and everyone is supposed to make periodic payments, either from wage withholding or by making estimated payments, and you can be assessed an underpayment penalty if you don't make periodic payments even if you pay in full when you file. However, the IRS won't actually penalize you for not making payments as long as one of these three statements is true:
1. You owe less than $1000 when you file your return.
2. Your payments and withholding are at least equal to your tax liability from the previous year.
3. Your payments and withholding are at least equal to 90% of your tax liability for the current year.
@Carl 's advice on how to come "close enough" is pretty good, if you don't want to make a more precise calculation.
Either way, your tax obligations are exactly the same whether you use your SSN or get an EIN for the business.
(Note however, if you have two different lines of business that you report on two different schedule Cs, you can use your SSN for both, but you would need different EINs.)
