Sole Proprietorship ID# required?

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#1
jon  
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minnesota
Taxpayer will be on a Schedule C, no salaries - she talked to Walmart to be a vendor on their site and will talk to Amazon also. She said the Walmart contact said she needs a ID#, and a social security number was not enough. Has anybody have an experience with this?
 

#2
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The Office
She can use the online tool to obtain an EIN as a sole prop.
 

#3
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Wisconsin
Having an EIN is, in some states, one of the requirements to be a considered a contractor for unemployment tax purposes. Some banks will require an EIN for a business account as well.

As a general practice, I would just say that clients should get an EIN because they cost nothing, and as ManVsTax mentions they can obtain it online immediately. It makes a lot more sense to just do it and keep one's SSN private instead of wasting time and effort trying to fight Walmart.
 

#4
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North Shore, Oahu
I'm not saying that it does not make sense to get one, but one issue is, when they do it themselves, is if they make incorrect selections and then start receiving letters for unfiled excise and payroll tax returns.

I usually suggest they get one and that they pay me to do it (especially after a recent 2553 election debacle I went through).
Last edited by ItDepends on 6-Jan-2023 2:54pm, edited 1 time in total.
 

#5
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NC
jon wrote:Taxpayer will be on a Schedule C, no salaries - she talked to Walmart to be a vendor on their site and will talk to Amazon also. She said the Walmart contact said she needs a ID#, and a social security number was not enough. Has anybody have an experience with this?


She should have one. Giving your SS # to vendors is like publishing it online.

I almost demand that my schedule C clients get a FED ID number.
 

#6
Joan TB  
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Texas
...but one issue is when they do it themselves is if they make incorrect selections and then start receiving letters for unfiled excise and payroll tax returns.

I usually suggest they get one and that they pay me to do it.


Absolutely this!! Amazing how many folks can't complete the online form correctly. And of course they never keep a copy of how they filled it out, so you don't know exactly what they did.
 

#7
HowardS  
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Southern Pines, NC
I get the EIN's for trusts and estates. I don't charge for this.
I just want it to be right and it's worth donating 30 minutes of my time.
Retired, no salvage value.
 


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