Tax ID in USA?
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- freedom
I don't do much freelance on my own, but a client just asked me for my Tax ID? Is that something that I need?
I usually just supply a W9. Is that different?
- Miguex0
if you'be been doing w9s w no Tax ID you are in trouble man!
If you don't have a Tax ID use your Social Security #
If you are a company you are expected to have Tax ID but I don't think it matters.Then again, I'm not the guy you should ask for tax advice
- cbass990
I have a business license, even though I only freelance a little bit during the year. It's only $35 per year. Not even sure if I need it but since I write off a bunch of stuff so I think I'd rather have it than not.
Not sure about the Tax ID, don't have one, my tax guy would have said something..
- lumedia0
you dont need it for freelance, just use your SS#
- freedom0
So if they ask for my tax id number after I send an invoice, I can send a W9 with my SS# on it?
I don't want to look inexperienced.
- Josev0
Do you Need an EIN, from the IRS website:
http://www.irs.gov/Businesses/Sm…Btw, it's easy to get one and you can handle it online
- formed0
W9 has a place for both your SS and/or your EIN. Either is fine, they just want to make sure they are following the rules (and have your numbers so when the IRS says 'hey, who's this buy you paid xx amount to, show us the records'.
Like 1099's, this is for the IRS to be able to keep track of who pays who, so no one is failing to report large chunks of income.
If you are a company, I'd get a EIN, but doesn't matter for your taxes if you are an LLC or S-Corp, both are pass through entities.
- mathinc0
EIN is super easy to get.. totally free and after you go through their online form I think it was instantly generated. I believe it has to be tied to an LLC, S-Corp etc. I'd just use your SS if you're freelancing.
If you have an LLC the practice is that you are supposed to not use personal information like your mailing address, SS etc because then you've comingled the business entity with your personal entity and if someone sues you they can go after you personally. So I got the EIN just to open the business accounts at the bank.
- freedom0
People are paranoid about giving SS# out, is the Tax ID safer?
I'm not my own business so it seems like W9 with SS is it.