Monday, February 25, 2008

Social Security # or Employer Identification #


I am a woodworker. I was wondering when setting up a sole-proprietorship in a one person operation, is it better to file using my Social Security number or file for a FEIN?

Dan from St. Albans, WV

Dear Dan,

Using your social security number is fine.

You must have an employer identification number (EIN), also called a federal employer identification number (FEIN) if you have employees, or a pension plan. Or if you use a business name instead of your own name your bank may require a FEIN for your checking account.

You can apply online here and get an EIN immediately.

I wish you much success in your new business.

Check out my book Self-employed Tax Solutions. It will simplify your tax and financial life, and save you money!

No comments: