Sole-Proprietors, Protect Yourself from Identity Theft by Obtaining an EIN
- June 07, 2019
- Miriam Hernandez
Acquiring an EIN or manager recognizable proof number is a smart thought whether you are a sole-owner in. If you are from Washington, there’s guide to applying in Washington State.
Occasionally, you’ll be approached to give your standardized savings number or boss ID to customers or legislative organizations. When you do that you have no influence over which customer representatives and others can see your number.
With data fraud a regularly expanding issue, decreasing the need to give out your government disability number must be a smart thought.
The most ideal approach to do that is to have a business recognizable proof number.
Indeed, having an EIN is compulsory for practically any business that is set up as an option that is other than a sole-ownership.
This is the IRS agenda for organizations that are required to have an Employer Identification Number.
- You have representatives.
- You are set up as an organization or association.
- You record expense forms for Employment, Excise, or Alcohol Tobacco and Firearms.
- You are engaged with a trust. (There are a few exemptions, check the IRS site).
- You are engaged with one of accompanying kinds of associations: Estates, land contract conductors, non-benefits, rancher’s cooperatives, and plan chairmen.
Sole-owners are not required to have an EIN. Be that as it may, on the off chance that you are a sole-owner, I firmly prescribe getting one.
The reason? On the off chance that you are a sole-owner, customers who pay you $600 or more over the span of a year must document a 1099 for your benefit. Also, they need your government managed savings number or boss ID number.
Also, you, thusly, are required to do likewise for your very own sole-owner subcontractors who get $600 or more in installments from you.
The Employer’s ID number satisfies IRS’s prerequisites when recording your 1099s, so you simply substitute the EIN for the government managed savings number.
The procedure is simple and clear.