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Do I need a EIN number if I am self-employed

 
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GeoffreyG
New Member

Do I need a EIN number if I am self-employed

Absolutely not . . . unless you are a sole-proprietor and you pay other employees who work for you (i.e., if you issue W-2s), or if you maintain a Keogh or other pension plan.  (Please see the attached screen image for a visual aid to entering this item in TurboTax; simply click to open).

Otherwise, you do not need to have a federal Employer Identification Number (EIN) assigned, in order to be self-employed.  You can operate your business, and file your tax returns under Schedule C (the main self-employment tax form), using just your Social Security Number (SSN).

That said, many self-employed persons voluntarily choose to apply for an EIN, rather than use their SSN for business, because they are concerned about identity theft and personal privacy.  So, that is something that you may consider doing, if you are in a situation where you have to provide others your tax ID number for business reasons (like Form 1099s, sales tax invoices, business credit applications, etc.).

As a courtesy to you, here is a link to the (legitimate) IRS.gov webpage where you can learn about applying for a free EIN:

https://www.irs.gov/businesses/small-businesses-self-employed/how-to-apply-for-an-ein


Thank you for asking this important question.

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7 Replies
GeoffreyG
New Member

Do I need a EIN number if I am self-employed

Absolutely not . . . unless you are a sole-proprietor and you pay other employees who work for you (i.e., if you issue W-2s), or if you maintain a Keogh or other pension plan.  (Please see the attached screen image for a visual aid to entering this item in TurboTax; simply click to open).

Otherwise, you do not need to have a federal Employer Identification Number (EIN) assigned, in order to be self-employed.  You can operate your business, and file your tax returns under Schedule C (the main self-employment tax form), using just your Social Security Number (SSN).

That said, many self-employed persons voluntarily choose to apply for an EIN, rather than use their SSN for business, because they are concerned about identity theft and personal privacy.  So, that is something that you may consider doing, if you are in a situation where you have to provide others your tax ID number for business reasons (like Form 1099s, sales tax invoices, business credit applications, etc.).

As a courtesy to you, here is a link to the (legitimate) IRS.gov webpage where you can learn about applying for a free EIN:

https://www.irs.gov/businesses/small-businesses-self-employed/how-to-apply-for-an-ein


Thank you for asking this important question.

AS24
New Member

Do I need a EIN number if I am self-employed

I work for cash. During prior years, this was reported as self employed, business as sole proprietor, on Schedule C-EZ. Since I do not keep record of associated expense, I always take 10% of income as miscellaneous expense. I do not have that choice  this year?

AS24
New Member

Do I need a EIN number if I am self-employed

Can I use Schedule C-EZ?

Do I need a EIN number if I am self-employed


@AS24 wrote:

Can I use Schedule C-EZ?


For tax year 2019 and beyond, the Schedule C-EZ is no longer used.  Only the Schedule C can be used.  If you are reporting self-employment expenses you have to use the TurboTax Self-Employed online edition.

Anonymous
Not applicable

Do I need a EIN number if I am self-employed

I need ein number 

Do I need a EIN number if I am self-employed


@Anonymous wrote:

I need ein number 


Go to this IRS website to request an EIN - https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

Do I need a EIN number if I am self-employed

If you are a sole proprietor or self employed,  you don't need an EIN unless you pay employees and hold out taxes and give them a W2.  But you can get an EIN to give out to people who pay you or to give people you pay on a 1099NEC instead of using your ssn.


EIN Employer Identification Number info
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Employer-ID-Numbers-EINs

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