Do I Use EIN or SS#? Can Someone Please Explain? Conflicting Info.

[ladyboss]

I am a sole proprietor. Since I won't be hiring employees, I am not
required to get an EIN. However, I was considering obtaining one anyway
because I don't want to give out my SS# all the time when I have to fill
out the W-9 form from paying clients.

But according to a business finance coach I just discovered on YouTube
(The title is: "How To Fill Out W-9 For LLC") she states that according to
the IRS instructions, you cannot write in an EIN number if you are a
sole proprietor. It must be a SS# instead.

Is this really the case? And if so, is there anyway around it? I'm concerned
about exposing my SS# to so many people. Thanks!

[Harold Mansfield]

Take what you learn on You Tube with a grain of salt and confirm the info you find there or anywhere on the internet.

2 things.

1. Yes you can get an EIN if you're a sole proprietor and you can use it. Right on the IRS website it says to identify "a business entity". It makes no requirement that you be a certain kind of business or have a min number of employees. https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers
2. You can call the IRS and just ask them what's the best way to go for your situation or what your options are. They actually answer the phone and are very helpful.

[Fulcrum]

Sounds like the business coach opts for simple and easy rather than slightly less simple and still easy.

[tallen]

Really, it's not that hard -- From the horse's mouth: https://www.irs.gov/pub/irs-pdf/fw9.pdf


If you are a sole proprietor and you have an EIN, you may enter either
your SSN or EIN.

If you are a single-member LLC that is disregarded as an entity
separate from its owner, enter the owner’s SSN (or EIN, if the owner has
one). Do not enter the disregarded entity’s EIN. If the LLC is classified as
a corporation or partnership, enter the entity’s EIN.

The key point is that you have to match the TIN to the name entered on the first line of the form. Simple as that....