Two things are sure in life: Death and Taxes.
Cliché, I know. But so true. We won’t escape (physical) death, how ever hard we try. And no matter what, we always have to report to the tax man.
One thing that every affiliate program asks for during the application process is a Tax ID number (EIN), or Social Security Number. Businesses are issued an EIN when they apply for a business license, an EIN, or create a Limited Liability Corporation (LLC).
The first time that I saw ‘EIN’ requested on an affiliate application, I didn’t know what to write. I asked a friend, did a Google search, and finally figured out that my SSN is my Tax ID number and I didn’t need an EIN.
Don’t judge me. It didn’t ask for an EIN (or) SSN. It just asked for an EIN. I was new to all of this.
So how do you know what you need?
Disclaimer: I am not an accountant. I know nothing about taxes except what I have gleaned from reading help files in Turbo Tax Online. You would be a fool to take what I say as ultimate truth. Always verify your own income and tax requirements with an accountant. /end_ disclaimer
That depends on your blog. Let me ask you a few questions.
Are you a sole proprietor or do you blog with a partner?
If you have a business partner, you will want to apply for an EIN from the IRS.
From IRS.gov: Do You Need an EIN?
Are you going to establish an LLC (Limited Liability Corporation)?
If you are going another step further with an LLC, you need an EIN.
Are you just having fun with your blog and affiliates?
Then you’re just like me! I use my SSN for my affiliate applications. If something drastic ever happened and my blog became an overnight sensation, or added a partner, I would apply for a business license and EIN.
Until then, I’ll stay on the down low. 😉
For more information on business options for your blog, read What Type of Business Should I Form? by Sara Hawkins, Attorney
I’ll cover more on swag, freebies, affiliate income, and taxes later this week, after a call to the IRS. Stay tuned!