EIN and SSN

[int_josh]

Ok this is my first year with EIN and I'm in need of some clarification:

do you have to file EIN and SSN separately? (both are on my name)
are EIN and SSN considered to be the single entity if they are both on one name?
are there any issues with deductions (if EIN and SSN have to be filed separately) if all my bank accounts/credit cards are under my SSN, but all income comes to EIN? (in other words I "sponsor" the business expenses through personal accounts)

Thanks guys!

 

[dealasite]

If you're talking about taxes, I file separate tax returns for my corporation (which has it's own EIN). The profit/loss from the corporation's K1 form goes on my 1040 (which is based on my SSN).

If you've been running as a sole proprietor under your SSN, there's a special form (I think it's called Schedule C) that's added on to your 1040 income tax return.

As for expenses, if the expense was for that business, you can deduct it. I do have a separate bank account under my corp. EIN to keep things organized. If you haven't already, hire a local CPA to handle your tax returns, so you can focus on growing your business. Hope this answers your questions.

 

[ScottDaMan]

Totally depends on your corporation election. S-Corp, C-Corp, etc. Just get a damn CPA.

 

[DaveEMG]

If you're dealing with business tax law, I second Scott's motion. CPA FTW.

Cheers,

Dave

 

[int_josh]

Hey guys thanks for input.

I'm operating as sole-proprietor, so essentially the only deductions I'm going to claim are advertising expenses.

From what I understand you have to file under your SSN and in Schedule C you have to specify business income and expenses and your EIN.

I have no employees, so it should be fairly simple IMO.

I really would like to do this myself with TurboTax or something, since CPA cost a few hundred bucks, which I kind of don't have to spare on something I can possibly do myself.

 

[jened]

for you do it yourselfers - my wife found a great book we've used the last couple of years for her art & framing business and my IM titled "Minding Her Own Business" by Jan Zobel. she briefly talks about it in a recent blog post:
Tax Time
i believe she is going to do a followup post at some point and break it down in the future for more detailed tax explanations. although the book is marketed towards women (HER OWN), it's really applicable to anyone.