# EIN versus using just SS#



## dvm-mommy (Feb 5, 2009)

ok..so we took a step and applied for an EIN number for the soap thing. However, as a sole proprieter, I was told by IRS that I did not need an EIN number as we were 1) Sole proprieter and 2) no employees ....and I could just use my SS# and file with the usual 1040 for next year. She also told me an EIN # was more for convenience sake so that we did not have to have our SS# on things.

So I applied for one. Now, hubby us telling me to get it cannceled as it is a filing nightmare come tax time and it is much simpler to just do business using SS#. Thoughts? Does one need to fiel a schedule C irregardless of using an EIN # or SS#?

What are the other advantages of and EIN #? What are the disadvantages?


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## linuxboy (Oct 26, 2009)

It's not a filing nightmare. It's just a substitute number, goes on your Schedule C. You have to file a schedule C as a sole prop regardless of EIN vs SSN.

Advantages? Simplicity of separating your affairs, can keep a business checking account in the EIN. Flexible if you want to hire people later. Helps keep your paperwork together if doing 1099-MISCs, etc.
Disadvantages? Well, it is one more number, but your filing requirements are the same for SSN vs EIN. It's not like you have a EIN-specific form to file every year just for having the EIN.


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## NubianSoaps.com (Oct 26, 2007)

How could you possibly know you won't hire someone? I hire people all the time to wrap soap, to clean the soap house, and it also is the number you use to buy in bulk. You can buy wholesale for resale. I would never give anyone my social security number, yet give my Employer ID number number out all the time, it is linked to my SS but you can't link it. It actually protects you.

If you have gone to all this trouble to set this all up, you might want to talk to a tax accountant in your state. I saw one for a very minimal charge through the small business administration, they are there to help us, we pay taxes for this help, use them. That way you don't have to listen to anybody, certainly not a husband unless he is a CPA  Vicki


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## hsmomof4 (Oct 31, 2008)

I know in our state, you have to have an EIN in order to get your retail (ie sales tax) certificate, which you have to have in order to sell at markets, etc.


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## jimandpj (Mar 11, 2008)

I agree - keep the EIN.

PJ


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## dvm-mommy (Feb 5, 2009)

employees..I don't know that, just re-iterating what I was told 
At this point, I don't have any employees- my goals are not a big scale operation...perhaps some day, yes. But for now, our business goals suit our family. 
Nah, hubby is not a CPA , but he was advised by so called tax experts in his office- ha!!!
I eneded up calling IRS again and having another long conversation with a very nice lady.

Long story short- we are keeping our EIN  YAY!


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## dvm-mommy (Feb 5, 2009)

hsmomof4 said:


> I know in our state, you have to have an EIN in order to get your retail (ie sales tax) certificate, which you have to have in order to sell at markets, etc.


Stacy- is the retail (sales tax) certificate the same as a vendor's liscence? If so, then we have that aready- all we need in Ohio is SS# or EIN to the Ohi tax dept. If it is something different, I shall have to check that out!

Made my first "official" wholesale transaction just recently- she bought my current inventory of soap and hand-cream. Now, we are talking small potatoes compared to some of you, but I was pleased nonetheless!!! 
It is only seasonal, at a local nursery from May to August. But as I am a full time mom and part-time vet, this suits me just fine!!! YAY


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## hsmomof4 (Oct 31, 2008)

I don't know about your state. In KS, the only "vendor" licenses that I can find have to do with food. So probably, it's the same thing under a different name, since our certificate is what you have to have to sell things (for sales tax purposes).


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## Kalne (Oct 25, 2007)

I've been able to use my sales tax number for everything so far. But I need to get an EIN now as I want to get a separate checking account with the biz. name and the bank requires it.


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