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Well you can plan on whatever you want, but in most cases you're going to have to supply your SSN or your SSN and EIN. A sole proprietorship isn't a business entity, there is nothing above and beyond the person operating it.
Honestly, you shouldn't even operate as a sole proprietorship in the first place.
A client is going to need either the SSN or an EIN if they issue a 1099. EIN's are free from the IRS so it is better for overall security reasons to get one. (there is a web site called IRS.org that charges for an EIN- if you go to IRS.gov it is free)
One thing I suggest everyone consider is putting a credit freeze on all three credit reports. They work and they are easy to lift (online using the supplied pin number). I was even blocked from a new phone line due to the freeze.
It only costs 7 bucks per credit reporting company (one time fee) and can be lifted instantaneously any time it is needed.
It is the same thing "lifelock" does for you at 10 bucks a month..... but doesn't have the "insurance" component.
A client is going to need either the SSN or an EIN if they issue a 1099. EIN's are free from the IRS so it is better for overall security reasons to get one. (there is a web site called IRS.org that charges for an EIN- if you go to IRS.gov it is free)
One thing I suggest everyone consider is putting a credit freeze on all three credit reports. They work and they are easy to lift (online using the supplied pin number). I was even blocked from a new phone line due to the freeze.
It only costs 7 bucks per credit reporting company (one time fee) and can be lifted instantaneously any time it is needed.
It is the same thing "lifelock" does for you at 10 bucks a month..... but doesn't have the "insurance" component.
An ezine article isn't exactly a reliable source or good business research.
As for a credit freeze, it will stop anything from being opened under your name. It's safer but a bit of an inconveneince though it's really not that hard to lift it just anytime you need to do anything even as simple as getting a new cell phone you'll need to lift it.
I've been self employed as a sole proprietor for 10+ years, I have over 2,000 vendors that supply me with proucts and my sales exceed $5M a year. I've been asked for a tax ID and my SSN has always worked just fine and never had a problem with it.
I'd stay with a SSN until it just doesnt make sense to. You start getting EIN's and then you got all sorts of extra filings needed.
When I used to umpire college baseball and independent pro ball they would use my SSN for the season's 1099. That was a fairly good paying side job. 12k+ a year, to quote Ron Luciano, "the best seat in the house but you gotta stand."
I recommend a solid year of networking prior to starting your biz. I also recommend no borrowing money. Finally I recommend getting a good accountant from the onset to see what's allowed and what's not on the home office deductions.
My biz? After I sold my marketing firm, I know consult for agencies around the country on client strategy.
Is it profitable? My only expense is my mobile phone and my laptop. So, yes, very.
How much money does it pay? Depends on the year. Last year? Mid 100s.
I do this roughly 7 hours a day. Because it's cyclical, workload depends on time of year.
I don't find clients. Clients find me. I have a good reputation.
Biggest challenge? Making sure that deadwood clients don't suck up all my time.
I recommend a solid year of networking prior to starting your biz.
I definitely plan on spending a lot of time marketing my business, networking and improving my writing skills and savvy before asking for paid work.
Kudos on your success! Sounds very exciting. Do you also blog or so any social media?
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but doesn't have the "insurance" component.
