USA Business Tax Requirements

Discussion in 'Accounting and Taxes' started by erinevans, Jun 3, 2011.

  1. erinevans

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    Jun 3, 2011
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    I'm thinking of starting a small business. I have been told that I don't need and EIN number, that I can use my social security number, until my business is making a certain amount of money. However it has been my experience that the IRS requires an EIN number rather than a social security number, no matter how much one's business makes. If I start a business that is, for example, a temporary services agency, that makes very little money, do I need an EIN, or can I simply use my SS# to, for example, open my business checking account? If I can use my SS#, at what monetary level must I switch to an EIN for quarterly reporting to the US Gov.? You can be approximate in your answer.

    Thank you.
    #1 erinevans, Jun 3, 2011
    Last edited: Jun 3, 2011
  2. Grumpy

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    Apr 7, 2011
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    Hi erinevans and welcome to Business Advice Forum.

    This forum is for introducing yourself, the appropriate place to post your business questions or help requests is in our Business Advice, Questions & Discussion area. :)
  3. Fergal

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    Nov 18, 2007
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    Welcome to Business Advice Forum erinevans, thanks for joining and for posting your business question.

    I'm sorry but I'm not based in the US so I don't have a detailed knowledge of the IRS, however we do have some members who do and hopefully one of them will reply back to help you. One thing I do suggest you do is contact your local IRS office and ask your questions to them. You don't need to reveal your identity on the call, if you'd prefer getting your facts clear before disclosing your business to them.

    Good luck with everything and please do post back with your thoughts or if you have any additional questions.

    [Thread moved to our General Business Advice, Questions & Discussion forum section!]
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  4. ArcSine

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    Jun 2, 2010
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    Greetings, Erin...

    The requirement for obtaining an EIN isn't keyed to income or earnings at all. You can operate a biz using your SSN as long as both: [1] you're operating as a sole proprietorship; and [2] you have no employees.

    If you take on any employees you'll need an EIN (hence the "E" in "EIN") for payroll reports and W-2 filings.

    If you set up your business as (or at any time convert to) a partnership, a corporation, or an LLC, the entity must obtain an EIN.

    For more details, and a link for easily obtaining an EIN online, see here.

    Best of luck with your new biz!
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