Washington, DC asked in Tax Law, Business Formation and Business Law for Maryland

Q: I'm starting a small business. Should I pay my business taxes using a business ID number or through my personal SS#? TY

1 Lawyer Answer
Cedulie Renee Laumann
Cedulie Renee Laumann
  • Crownsville, MD
  • Licensed in Maryland

A: It depends on the nature of the business and what type of "business taxes."

A sole proprietor who files on a Schedule C and has no employees may elect to use their own social security number for their estimated tax payments, but most small businesses would benefit from forming an entity and getting an EIN. A sole proprietor can apply for an EIN to pay employees even if they have no separate business entity. That being said, taxes will fall on the individual owner if it is a disregarded entity so the use of the EIN vs. SS# doesn't really affect the tax liability.

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