In order to get an Employer Identification Number, EIN, with the IRS one must choose a legal structure. In this series of blogs, I will go over the different types of legal structures, and wrap up with a comparison of each.
Sole Proprietor
Includes an individual who is in business alone or household employers.
- Sole Proprietor
- This type of business has one owner. It is also not incorporated or set up as an LLC (Limited Liability Company) with the state.
- This type of structure can be an individual running a business. It also includes an independent contractor.
- All income and expenses are recorded in the individual 1040 on the schedules C, E, or F.
- This structure may or may not have employees
- Household Employer
- A household employer includes someone who has hired someone to do housework. The hired person is also an employee.
- These include but are not limited to: babysitters, nannies, au pairs, cleaning people, housekeepers, maids, drivers, health aides, private nurses, caretakers, yard workers, etc.
You can apply for an EIN at https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
