Do I need a Tax Identification Number?

[xbone]

Greetings. I'm a full-time student in Mass and quite recently started doing freelance photography as a part-timer. Recently a company based in Arizona is interested in hiring me to do some work on a regular basis for their website. During our interview, it was mentioned in passing that they needed a TIN which I don't have. I thought my Social security number would suffice but I could be wrong. I don't have my own company nor do I think I need one since I'm not doing this full-time. Please help as I'm new to all this.
thanks!

 

[LdiJ]

Greetings. I'm a full-time student in Mass and quite recently started doing freelance photography as a part-timer. Recently a company based in Arizona is interested in hiring me to do some work on a regular basis for their website. During our interview, it was mentioned in passing that they needed a TIN which I don't have. I thought my Social security number would suffice but I could be wrong. I don't have my own company nor do I think I need one since I'm not doing this full-time. Please help as I'm new to all this.
thanks!

Your social security number IS your tax ID number.

 

[CraigFL]

I'm sure they want you to have a TIN so you are not considered an employee of theirs. You need to decide what kind of business entity you need to be and then apply to your state. While a SSN typically works for a sole proprietorship, my thoughts these days because of identity theft, you probably want to get an unrelated number...

 

[xbone]

aaah... so I need to set up a company in order to have a TIN then. let's say I want to start a sole proprietory business entity. do I need a lawyer? hope this is the right place to ask.

 

[LdiJ]

aaah... so I need to set up a company in order to have a TIN then. let's say I want to start a sole proprietory business entity. do I need a lawyer? hope this is the right place to ask.

I am sorry but I disagree with the previous answer. The term "tax ID number" is simply a generic term to denote either your SS number or your EIN number. The company is expecting you to either give them your SS number or your EIN number.

It is not necessary for you to set up a business entity. Nor is it any more risky, for identity theft purposes, to give the company your SS number, than to give your number to any employer.

 

[abezon]

A person operating as a sole proprietor does not need to have a separate EIN unless s/he has employees. A partnership, corporation, or LLC needs to have an EIN.

Getting an EIN takes about 10 minutes. You can apply online at www.irs.gov -- click on the employers link. Using an EIN will give you extra protection from identity theft. What's the real risk involved? How secure are your client's files/computers? How trustworthy are the office workers? Is anyone there a compulsive gambler?

If the web design business takes off & you can make lots of money at it, you might consider becoming an S-corp & paying yourself a *reasonable* salary for your work, then taking the remaining profits as ordinary income (no self employment tax). S-corp status is a pain in the neck, so talk to a professional about whether it's really worth the hassle before taking that step. Hint: the person who will get paid to set up the S-corp is not the professional you want to talk to!

 

[xbone]

Thanks for the input. besides an SSN, what else do I need to get an EIN? Do I need to set up a business entity? the wordings on the irs website is kinda confusing.

Looking at the SS-4 form(https://sa2.www4.irs.gov/sa_vign/newFormSS4.do), do I need to have a trustee(Part 3)? Under 8a, what does "Personal Service" mean? It seems to me that starting up a business will be quite a hassle and having to pay someone doesn't sound appealing. so rather than doing that, can I chooose "Banking Purpose" in part 9? for what I intend to do, is it a valid? just want the easiest and economical way to get an EIN.
thanks again.

 

[LdiJ]

Thanks for the input. besides an SSN, what else do I need to get an EIN? Do I need to set up a business entity? the wordings on the irs website is kinda confusing.

Looking at the SS-4 form(https://sa2.www4.irs.gov/sa_vign/newFormSS4.do), do I need to have a trustee(Part 3)? Under 8a, what does "Personal Service" mean? It seems to me that starting up a business will be quite a hassle and having to pay someone doesn't sound appealing. so rather than doing that, can I chooose "Banking Purpose" in part 9? for what I intend to do, is it a valid? just want the easiest and economical way to get an EIN.
thanks again.

If you really want an EIN number its incredibly simple to obtain one. However, again, in your case its incredibly unnecessary....it DOES NOT protect you against identity theft.

Your EIN would just as vulerable as an SSN number...sigh....and just as damaging.