If I get a Fed TID, what does that change?

[NinnJinn]

I have grasped the concept of State TID and what I need to do on my tax returns by just adding the net profits to my income. 

I am getting into 3rd party vending and Pepsi is requiring a Federal Tax ID number.  I understand I can get one online in a matter of minutes.  However, If I get one, will this change the way I would do taxes etc at the end of the year?

I have no employees and I am not a company or a corporation.

If I had one,  Would I just fill my personal taxes out based on my W2's and then have to file a separate tax return on the business that has the Federal Tax ID that Pepsi is wanting?

Thanks,

Mike

[alyssamma]

This is actually a tricky question. You have a TIN - Taxpayer Identification Number. This is your SS#. I believe you can supply this to them and be ok. Since you are a sole prop, you are good to go with that. In your post you say this is what they want.

However, if they really want an EIN - Employer Identification Number (which, like the SS# is a type if TIN), then it gets a little tricky. Technically you don't meet the requirements to get an EIN. I'm not sure what would happen if you just applied for one and got it. My guess is nothing, but that could confuse things.

So, if that want a Federal Tax ID Number (TIN), then this is your SS# for your type of business (sole prop w/o any employees).

If they won't take that for some reason, find out why and post back here.

Kevin

[NinnJinn]

Thanks Kevin!  I will call them up today and see if that will work.

[BluePlate]

If you go to the IRS website you can apply for an EIN wether you have employees or not.  This EIN is interchangable with your SS# for tax issues.  The IRS allows you to do this to protect your SS#. 

If you go to the website, takes 5 mins to get one.  This tax number will stay with you for any DBA's you set up or even a sigle person LLC you set up.

Although like Kevin said, you can use your SS#

[vendguy]

Great info. thanks

[alyssamma]

Blue, I would caution against that. I am not sure what would happen if he mixed soc and EIN. There is a test on the IRS website to see if you need an EIN, and using it as an alternate to a soc isn't one of them.

I'm not saying you are wrong - just saying that if you start filing your personal taxes with an EIN that might cause problems. And if you identify yourself to the IRS with yiour soc, but Pepsi is using an EIN, that might cause problems too.

Kevin

[BluePlate]

Kevin,

I agree could get a little confusing.  My accountant suggested I did not use my SS# on documents and invoices.

Found this in a search.......basically what I was told.

http://www.businessweek.com/smallbiz/content/feb2009/sb2009025_765534.htm