As long as you identify yourself as a sole proprietor when you apply for an EIN, using the EIN will not create any additional accounting implications or tax liabilities. You still use your Social Security number on your tax return, but you enter your EIN on Schedule C when TurboTax asks if you have an EIN.
As long as you identify yourself as a sole proprietor when you apply for an EIN, using the EIN will not create any additional accounting implications or tax liabilities. You still use your Social Security number on your tax return, but you enter your EIN on Schedule C when TurboTax asks if you have an EIN.
Thanks for the prompts answer.
I will give more time if someone else has interesting advice to add to this before marking the topic as RESOLVED
Maybe you already know this. The main advantage of having an EIN is that you don't have to give your Social Security number to clients or customers. If they ask for your tax ID number, or ask you to fill out a Form W-9, you can give them your EIN instead of your SSN.