Question

Do I need an EIN for a sole proprietorship?

I am starting a small magazine as a sole proprietor and do not have any employees. I imagine my publication will remain small for atleast a year before I will need to hire an assistant. Can I just use my own SSN for my taxes and later change to using an EIN once I begin to hire? Or is it best to just get the EIN now?

1 year ago - 1 answers

Best Answer

Chosen by Asker

You can certainly use your own SSN -- not a problem. You'll just have to keep careful records so you can report your taxes accurately.

From the IRS.gov:

"You must also have an EIN to use as a taxpayer identification number if you do either of the following.
• Pay wages to one or more employees.
• File pension or excise tax returns."

Hope this helps!

Source(s):

1 year ago