Confused about TINs and EINs? Here’s info to help you decide which to use in your business.
Dear Janet,
I’m starting a home business and want to keep the business finances separate from my personal finances. Would it be better to apply for a TIN or EIN? Currently I have no plans to hire any employees.
–High Hopes
Dear Hopes,
TIN is an acronym for Taxpayer Identification Number. This can be either your social security number, or an Employer Identification Number (EIN). If you are going to operate as a sole proprietor and won’t have employees, you can use your social security number as your TIN. You can use the social security number (along with a DBA certificate) to open a bank account in the business name. If you later decide to hire employees, then you would apply to the IRS for an EIN.
Dear Janet,
We deal with several LLC’s and are confused about what to do with 1099s for the LLCs. We have issued some checks during the year to the LLCs and some to the individuals in the LLCs. How do we handle the 1099s? Do we submit 1099s for the LLCs or for the individuals who received compensation?
–Perplexed
Dear Perplexed,
Here’s how the IRS says to handle 1099s for LLCs:
For a single-member limited liability company (LLC) (including a foreign LLC with a U.S. owner) that is disregarded as an entity separate from its owner under Regulations section 301.7701-3, enter the individual’s name only on the first name line and the LLC’s name on the second name line. For the TIN, enter the individual’s SSN (or EIN, if applicable). If the LLC is a corporation, partnership, etc., enter the entity’s EIN.
Tax Information and Resources
-
6 Tax Hacks For SMB Owners
-
4 Ways To Remove Your Tax Lien
-
Avoid Tax Time Frustrations
-
6 Tax Hacks For SMB
-
3 Common Tax Problems You Can Fix
-
7 Tax Planning Myths
-
Top 19 Tax Deductions
-
Home Business Tax Deductions
-
Start Business For Tax Purposes
-
Owing the IRS 6 Tips
-
Business Tax Refund
-
Home Business Tax Breaks
-
What Does an SMB Pay in Taxes
-
Guide to EIN Numbers
-
SMB Tax Tips for 2022
-
California Franchise Tax Board Fee
-
Estimating Taxes
-
IRS W-4
-
Independent Contractors
-
Tax Credits As Revenue for Your Business
-
State Business Taxes
-
What is a W9
-
TINs and 1099s
-
Self Employed Tax Deductions
-
Choosing LLC Fiscal Year
-
Deduct Start Up Expenses
-
Single Member LLC Taxes
-
Can I Deduct My Hobby?
-
Home Office Telephones
-
Income Tax Liability: What You Need to Know
-
Tax Debt Schemes The Facts
-
Tax Information for LLC's
-
SMB Tax Deductions
-
K1 Tax Forms
-
Self Employed Quarterly Tax Filing
-
Calculate Sales Tax
-
Abusive Tax Shelter Info
-
Transcript Delivery
-
Quarterly and Annual Tax Filing
-
Fed and State Tax ID Numbers
-
Home Office Deductions
-
Structuring Taxes and Your Business
-
Filing Partnership taxes
-
Taxes As An Artist
-
Avoid Capital Gains Tax on Stock Sales
-
Vehicle Tax Deduction
-
Compare the Benefits of Inc vs LLC Taxes
-
Sales Tax Nexus Explained
-
Tax Deductions For Purchasing Artwork
-
How To Sell Your Business
-
Payroll Tax Guide
-
Estimated Taxes
-
SMB Tax Struggles
-
Self Employed Tax Mistakes
-
IRS Is Auditing Your Return
-
Tax ID Numbers
-
10 Self Employed Tax Tips
-
Small Business Tax Basics
-
End of Year Tax Strategies
-
Don't Forget These Deductions
-
How are LLCs Taxed?
-
LLC Tax Filing Deadline
-
50 Tax Deductions Not to Miss
-
Tax Write-Offs for an LLC
-
Small Business Tax Tips
-
Helpful Tax Tips
-
File for a Tax Extension
-
Track Tax Deductible Expenses
-
Tax Tips For The Self Employed
-
7 Self Employed Tax Deductions
-
W2 Prep & Reading
-
1099 W2 Whats The Difference
-
Small Business Federal Taxes
-
How to File Taxes for LLC
-
Tax Mistakes
-
6 Tax Tips For Self Employed
-
Difference 401k & 401a
-
Do Not Forget These Deductibles
-
National Internet Sales Tax Bill
-
What is Franchise Tax
-
Avoid Triggering an IRS Audit