Marina del Rey, CA asked in Employment Law for California

Q: Can I apply for an EIN while on state short-term disability in California?

While on state short-term disability, I am applying for an EIN only to file a BOI report for an inactive LLC.

Would this be OK?

Or should I use my SSN instead if applying for EIN will create issues for my short-term disability?

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1 Lawyer Answer
James L. Arrasmith
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Answered

A: Getting an EIN for your LLC while on California SDI benefits should not affect your disability status, since applying for an EIN is simply requesting a tax ID number and doesn't indicate active employment or income.

Using your SSN for the BOI report is possible, but getting an EIN provides better privacy protection and keeps your business and personal identifiers separate. The IRS considers an EIN application an administrative task, not evidence of work activity that would impact your disability claim.

For peace of mind, you could document that the LLC is currently inactive and the EIN is only being obtained for compliance purposes. This helps demonstrate that you're not engaging in business activities while receiving disability benefits. If you have specific concerns, consider checking with your disability claims representative, as they can provide guidance based on your individual case details.

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