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 (SSN) or an Employer Identification Number (EIN). If you’re 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; however, many banks require an EIN for opening a business bank account. If you later decide to hire employees, then you would apply to the IRS for an EIN.
Dear Janet,
We deal with several LLCs 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 business is a corporation, partnership, etc., enter the entity’s EIN.
Janet Attard is the founder of the award-winning Business Know-How small business web site and information resource. Janet is also the author of The Home Office And Small Business Answer Book and of Business Know-How: An Operational Guide For Home-Based and Micro-Sized Businesses with Limited Budgets.
Disclaimer: The content on this page is for informational purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
Tax Information and Resources
-
4 Ways To Remove Your Tax Lien
-
6 Tax Hacks For SMB
-
6 Tax Hacks For SMB Owners
-
Avoid Tax Time Frustrations
-
3 Common Tax Problems You Can Fix
-
7 Tax Planning Myths
-
Don't Forget These Deductions
-
Abusive Tax Shelter Info
-
IRS Is Auditing Your Return
-
Tax Credits As Revenue for Your Business
-
Small Business Tax Tips
-
SMB Tax Struggles
-
Self Employed Quarterly Tax Filing
-
Fed and State Tax ID Numbers
-
Quarterly and Annual Tax Filing
-
Avoid Capital Gains Tax on Stock Sales
-
Sales Tax Nexus Explained
-
Business Tax Refund
-
What is a W9
-
Helpful Tax Tips
-
Calculate Sales Tax
-
Estimated Taxes
-
California Franchise Tax Board Fee
-
How To Sell Your Business
-
Deduct Start Up Expenses
-
10 Self Employed Tax Tips
-
Guide to EIN Numbers
-
Tax Write-Offs for an LLC
-
K1 Tax Forms
-
Tax Tips For The Self Employed
-
Home Business Tax Breaks
-
File for a Tax Extension
-
Do Not Forget These Deductibles
-
What Does an SMB Pay in Taxes
-
Vehicle Tax Deduction
-
End of Year Tax Strategies
-
Taxes As An Artist
-
Track Tax Deductible Expenses
-
Compare the Benefits of Inc vs LLC Taxes
-
Tax Debt Schemes The Facts
-
Home Office Telephones
-
LLC Tax Filing Deadline
-
How to File Taxes for LLC
-
Income Tax Liability: What You Need to Know
-
Independent Contractors
-
TINs and 1099s
-
Self Employed Tax Mistakes
-
Start Business For Tax Purposes
-
Choosing LLC Fiscal Year
-
7 Self Employed Tax Deductions
-
What is Franchise Tax
-
Single Member LLC Taxes
-
Top 19 Tax Deductions
-
Payroll Tax Guide
-
Transcript Delivery
-
1099 W2 Whats The Difference
-
Home Office Deductions
-
Can I Deduct My Hobby?
-
6 Tax Tips For Self Employed
-
Self Employed Tax Deductions
-
Filing Partnership taxes
-
Home Business Tax Deductions
-
National Internet Sales Tax Bill
-
Small Business Tax Basics
-
Tax ID Numbers
-
W2 Prep & Reading
-
How are LLCs Taxed?
-
Tax Deductions For Purchasing Artwork
-
IRS W-4
-
Tax Information for LLC's
-
Small Business Federal Taxes
-
50 Tax Deductions Not to Miss
-
Structuring Taxes and Your Business
-
Tax Mistakes
-
SMB Tax Tips for 2022
-
State Business Taxes
-
SMB Tax Deductions
-
Difference 401k & 401a
-
Estimating Taxes
-
Avoid Triggering an IRS Audit
-
Owing the IRS 6 Tips