Announcement

Collapse
No announcement yet.

Side Hustles & EIN?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Side Hustles & EIN?

    Long-time lurker and first time poster!

     

    My husband is looking to start a side-hustle w/ his related engineering expertise from his prior 'life' he likes to say haha! (He's a practicing Peds Hospitalist).

    We have an EIN as we employ our Nanny through care.com which takes care of all of the expenses/taxes/fees associated w/ having our nanny.

    Our question is - do we need to have ANOTHER EIN for this new side hustle business?

    And...for those who have set up a side-hustle - did you do it under a LLC, just go at it alone, or...?

     

    Thanks!

     

    Wife of Enginerd

  • #2

    1. I would get a 2nd EIN if he is planning to set up a solo-k. I don't think it is essential, but I'd want to separate the 2 activities in the IRS database and EINs are quite easy to apply for and receive.

    2. First of all, if you're in CA, that's not an option. In general, you just need a sole proprietorship. The sole purpose of an LLC is asset protection and an LLC gives no protection to a professional.

      • Now, if this side hustle has the potential to earn $350k - $400k and/or your husband will have employees, then consider an s-corp.



    Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

    Comment


    • #3
      Here's another EIN question, is the information from the application public? Can I use my home address / phone safely if I don't want people to be able to Google me and find my home? Or should I get a po box, second line, etc?

      Comment


      • #4
        Who knows how all those companies that sell identifying information get it? Think of all the places you have listed your phone number and address. The IRS doesn't release it, but it is very easy to get your EIN, much more so than SSN, so I'm not sure if you are exposing yourself by listing it or not. I've never considered this and have not had a problem in decades of having an EIN. (Granted, my address is my business location.) I wouldn't go to the trouble of taking out a PO box for this, though - I would think you're trying to catch a minnow in a pretty big ocean if you think that would stop those who are determined to get your address and phone number. At least, so say the robo-callers I get on my cell phone.
        Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

        Comment


        • #5
          Got it, I'm more thinking the angry patients from the ER who threaten me or to hunt down my family, etc.

          Also, regarding one vs many EIN, is it beneficial to separate different business ventures as well? For instance, if as a sole proprietor I were to have income doing chart reviews, work a few shifts at a second hospital, as well as expert witness work, are there pros and cons to doing that all under one EIN vs multiple? If multiple EIN could I still contribute all those streams of income to one i401k?

          Comment


          • #6
            Also to OP, check out this book https://www.amazon.com/LLC-vs-S-Corp-C-Corp-Explained/dp/1950967018 I am partway through it and find it helpful on understanding the best business structure (it covers sole proprietor and partnerships as well). You can get it free through a Kindle unlimited 30 day trial, as well as many other good books from the same author.

            Comment


            • #7




              Also, regarding one vs many EIN, is it beneficial to separate different business ventures as well? For instance, if as a sole proprietor I were to have income doing chart reviews, work a few shifts at a second hospital, as well as expert witness work, are there pros and cons to doing that all under one EIN vs multiple? If multiple EIN could I still contribute all those streams of income to one i401k?
              Click to expand...


              I wouldn't go so far as that. If you opened a solo-k for your side hustles, for example, all of the profits w/b aggregated under that one umbrella. I just wouldn't want to mix in payroll for a nanny. And if you were to go into partnership in one venture, then you'd want a separate EIN for that. It's pretty subjective, I'm just trying to think practical.
              Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

              Comment


              • #8
                It must not be that hard to get a home address. I had a super-nice patient knock with a Christmas present one year. Luckily not that patient I fired for drug /narcotics issues! I’m still not entirely sure where she got the info. She must have noticed my surprise and has been gracious enough to still give presents, but bring to work. ?

                Comment


                • #9
                  Simple and practical is good!

                  I guess another way to protect anonymity would be a DBA name for sole proprietorship. Other than the relatively minor expense and hassle of registration is there a reason not to do that? Would it significantly increase complexity of opening a bank account for the sole proprietorship, or is there anything special about working in clinical medicine where a DBA wouldn't be allowable if the state otherwise allows DBA for sole proprietorships?

                  Comment


                  • #10
                    Remember that Fidelity allows you to do a solo 401k with your SSN not an EIN.

                    I'm on year 3 of doing this, absolutely no problem.

                    You def don't want to run nanny and consulting through the same EIN, that would be weird.

                    Comment


                    • #11




                      Simple and practical is good!

                      I guess another way to protect anonymity would be a DBA name for sole proprietorship. Other than the relatively minor expense and hassle of registration is there a reason not to do that? Would it significantly increase complexity of opening a bank account for the sole proprietorship, or is there anything special about working in clinical medicine where a DBA wouldn’t be allowable if the state otherwise allows DBA for sole proprietorships?
                      Click to expand...


                      We use DBA for both businesses (Fox & Co CPAs and Fox Wealth Management) but that is only because we’ve changed the names of both (from Johanna Fox, CPA and Milestones Financial Planning) and it was simpler than re-registering everything. AFAIK, the dba can easily be traced to the registered name. That is in KY, of course, but it’s probably same/similar in most states.
                      Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

                      Comment


                      • #12


                        It must not be that hard to get a home address. I had a super-nice patient knock with a Christmas present one year.
                        Click to expand...


                        Wow.  Thank you for sharing that...seriously, thank you:  I had just always assumed that a patient knocking on my door should be met with a firearm.  Not trying to be melodramatic, just realistic.


                        information from the application public
                        Click to expand...


                        have you googled your name and address already?  it is amazingly easy to find; thank you, internet.  I initially had my state business license listed as home address and that is easy to find.  Any public commentary (government meetings) and it pops up.  And finally our county assessor has details such as a photo, purchase price, number of bathrooms....

                        Comment

                        Working...
                        X