Hey guys, was just wondering. I’ve been a little uneasy about mass applying to CPA networks because for each one I have to give out my SSN. Have a lot of you done this with no issues at all?
I get a TIN from the IRS.
It’s safe as long as they’re reputable networks.
9 times out of 10, you should be running your activities though a limited liability company from day 1.
- Set up a company, generally either as an LLC or an S-Corp, based on your situation
- Apply for an EIN (Employer Taxpayer Identification Number) here: https://www.irs.gov/Businesses/Small-…r-(EIN)-Online
- Run your activity through this company, using the EIN as the "Social Security number" instead
Perhaps your advisor can provide their two cents @cmdeal
My understanding is that the tax benefit of an LLC applies as long as the cost of maintaining the LLC is less than the 15% self-emplyoyed tax you would otherwise be paying if you’re on a schedule c.
Do you / your advisor(s) agree?
Everyone’s tax situation is different, so you should really make sure whatever you set up is right for your specific case.
9 times out of 10, however, running your affiliate activity as a sole trader/sole proprietorship (and not through a limited liability company) would be a mistake.
Dam I had no idea about that. I’ve been a member of a few affiliate networks through sole proprietorship. I’m just finishing up college and am not too familiar with setting up companies. Thanks for the links, I’ll definitely look into it.