EIN vs SSN and Taxes

Discussion in 'Legal Issues' started by aliks0905, Jul 15, 2009.

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  1. #1
    Hi everyone,

    Here's the scenario. I am a sole proprietor and have been using my SSN for filing Estimated Taxes this very first year. Although, I do not have any employees, I signed up and received a federal EIN and now use it with certain advertising firms.

    My question is, say I earn a substantial amount of money from an advertiser (like Adsense) and my EIN (rather than my SSN) is on account with them, then how do I file/pay taxes using my EIN?

    Now that I've sent two ES payments so far this year with my SSN rather than an EIN, what do I do for the rest of the year?

    The above questions are starter questions as I have a lot of questions about this issue, and am looking for advice.

    And one more thing, please use plain English to explain how these things work because, at the moment, I am not very "tax-talk linguistic".

    Thanks!
     
    aliks0905, Jul 15, 2009 IP
  2. Codythebest

    Codythebest Notable Member

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    #2
    Why not trying a "tax forum" instead of a "webmaster forum"?
    My 2 cents though...
     
    Codythebest, Jul 15, 2009 IP
  3. browntwn

    browntwn Illustrious Member

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    #3
    The income earned by your SSN or EIN will all be reported and paid on your personal taxes, assuming you are correct about being a sole proprietor.

    I earn money through Adsense both on my SSN and an EIN (two separate accounts). When I pay my taxes both the EIN and SSN income are included as my personal income and I pay taxes based on that income. I use an accountant so I do not deal with the actual details of how each is reported but it should not matter that some income comes under your SSN and some under your EIN.

    If you are only paying personal taxes then that is where all income will be reported and taxes paid.

    Why did you get an EIN if you have no employees and are a sole proprietorship?

    (In my case I have several LLC's, each with an EIN, and then some things I do directly under my personal name.)
     
    browntwn, Jul 15, 2009 IP
  4. Taxplanr

    Taxplanr Peon

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    #4
    Since your LLC is taxed as a sole proprietor it will not matter if you receive 1099's in your SSN or EIN. Just make sure your EIN is also listed in the appropriate box on your Schedule C.

    Your estimated tax payments should always carry your SSN since your EIN represents a disregarded entity for tax purposes therefore it does not pay taxes seperately from yourself like a C corporation would.

    Lastly, I am a tax planner. You may check out my services at http://www.1040WealthDesigns.com or contact me there.

    I hope this helps.
     
    Taxplanr, Jul 17, 2009 IP