I am my disabled son's Legal Guardian and Trustee of his First Party (self-settled) Special Needs Trust. We live in Washington State. I have hired an aide for him and will be paying the aide from his Special Needs Trust. The Trust has an EIN. The SS-4 application for the EIN stated that he is the "responsible party" and I am the Trustee.
The State of Washington had me set up a business as a sole proprietorship, using my name, so that I could pay the Aide. The WA Employment Security Dept. asked me for an EIN, and I provided the Trust's EIN since I will be paying him from the Trust. However, my own name is the "business name." Is this going to cause problems down the line when I, as the employer, pay federal employment taxes? And would I include Schedule H on his 1040 return? Or the trust's 1041? Should I have set up the business as a Trust instead of a Sole Proprietorship? The state had me set up a "business" only so I could get a UBI number.
