Dear forumers.
I work as an Independent Contract and receive a 1099. I file a Schedule C every year. This year I would like to open a Solo 401K. One requirement to have such an account is to obtain an EIN (and register as a Sole Proprietor). I was wondering if there was any downside to getting an EIN? I want to make sure that my tax rates will not change for example.
Thanks in advance for the help.
I can't think of any disadvantage of having an EIN. It won't change your tax rates or anything else.
One *advantage* of getting an EIN is that you don't have to give your Social Security number to companies that you contract with. You can give them your EIN instead of your SSN, and they will issue the 1099-MISC with your EIN. It makes no difference on your tax return. Many independent contractors get an EIN for just this reason.
Bob Sandler
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