Tax Law (Questions About Taxes)/Sole Proprietorship

Advertisement


Question
My sole proprietorship does not require a separate EIN. However, the bank would not allow me to open a business account unless I applied for an EIN. When filing my tax return, can I use my social as the tax ID or must I use the new EIN? If the new EIN will I still get credit on my social security?

Answer
All you had to do to open the account with the bank was a fictitious name statement filed at your local town clerk (that, and a new bank).    They "forced" into additional complexity.   

So, now you have an ein which means you have to file the schedule c and report the ein.   But how it will change or affect your credit report I can't address. But my guess is it won't have any effect overall

Your credit report cares not one iota about your business activity, but instead focuses on what you owe, when you pay and how many credit arrangements you have.    Really poor people who pay their bills can have stellar credit


Get a new bank and move on  

Tax Law (Questions About Taxes)

All Answers


Answers by Expert:


Ask Experts

Volunteer


MEdusa

Expertise

Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).

Experience

19 years cpa. ms tax. NOTE: My discussions are only a general information and do not constitute tax advise without entering into a specific agreement and executing an engagement letter; This free chat is nothing more than general information and should not be construed as tax advice nor does my response or replies imply an agreement to provide client specific advice or other guidance for purposes of avoiding IRS tax or penalties and should not be relied upon without your own validation and confirmation of the how the discussion may fit your facts... Not having all the facts and/or not having a direct client relationship prevents me from providing the most accurate replies as possible and I highly suggest using a local CPA to provide you with written advice and guidance. Taking matters into your own hands is much akin to trying to land an airplane without a license. It is easy to FLY a plane, but LANDING is when critical experience is key. In short, caveat emptor; do your homework and don't just rely on free chat board advice anywhere, anytime.

Organizations
AICPA, CSCPA (Ct society), National Tax,

Publications
a bunch.

Education/Credentials
MS tax and other post graduate coursework

Awards and Honors
variety including Summa Cum Laude

Past/Present Clients
I don't disclose or kiss and tell

©2016 About.com. All rights reserved.