Hello. I am a household employer with an EIN to report taxes on my Schedule H. If I start a new business as a sole proprietor, do I need a new EIN?
IRS publications confirms the reverse, where a sole proprietor can use an exiting EIN for household employees. I can't seem to find info for my situation.
Thanks!
If your household employee is not an employee of your sole proprietorship, you should get a new additional EIN so that the records can be properly maintained.
See Publication 1635, Employer Identification Number - Understanding Your EIN.
If your household employee is not an employee of your sole proprietorship, you should get a new additional EIN so that the records can be properly maintained.
See Publication 1635, Employer Identification Number - Understanding Your EIN.
Hi. When I go to apply for a new EIN per advice here, I got an error as you did. I end up calling IRS Business Service to try to apply for an EIN over the phone. The agent told me I don't need another EIN and use my household employer EIN for all my sole proprietor businesses.
Hope that helps.