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EIN Requirements for Freelancers and Businesses Hiring Freelancers
- Freelancers and 1099 Forms
- Freelancers are required to file tax form 1099 for annual earnings over $600.
- Businesses hiring freelancers must provide their Social Security number and information to multiple clients.
EIN Requirements for LLCs
- LLCs and 1099 Forms
- LLCs (not filing as corporations) need an EIN.
- Their business must file 1099 forms for contractors who are set up as LLCs.
Form Filing Information and Penalties
- Form Filing and Penalties
- If additional required forms are discovered after filing certain forms, file them with a new Form 1096.
- Penalties may apply for incorrectly filed documents if paper forms are not scanned correctly.
Additional EIN Information and Resources
- Obtaining an EIN
- An LLC needs an EIN if it has employees or will file excise tax forms.
- Taxpayers can obtain an EIN by calling the IRS Business & Specialty Tax Line.
Reporting Requirements for Independent Contractors
- Reporting 1099 Earnings
- Contractors and others reporting 1099 earnings do not file 1099s with tax returns.
- Companies paying out money covered by 1099s file the forms.
Small Business Resources
- U.S. Small Business Administration Website
- One of the best small business resources is the U.S. Small Business Administration website.
- The “Business Guide – Manage Your Business” section has great links to other information.
