Back to Frequently Asked Questions
Do I need a Federal ID number?
Q: I'm starting a home based mail order business that involves the buying and reselling of musical instruments. I am the only employee and I have obtained a DBA certificate for my business name. Do I need to do anything with the IRS at this time? Should I obtain a federal tax ID number or just my own social security number?
A: You do not need to get an EIN (federal tax ID or Employer Identification Number) from the IRS if you are a sole proprietor without employees. You can open your business bank account with your DBA name using your social security number (SSN). You will file Schedule C at the end of the year with your personal tax return, and if you have made a profit, Schedule SE (for self-employment tax) as well.
|
