I am relatively new to mystery shopping and have just been asked by a company to get an EIN. I haven't run across this before and am somewhat reluctant to do it. I'd appreciate knowing your opinions about getting an EIN. Are there any downsides to getting one?

Thanks for any help you can give!

No downsides as it is just an alternate number the IRS provides for tax purposes. Easy and free to get one online by applying here ( [sa2.www4.irs.gov] ) Essentially since you are operating as an Independent Contractor, you own your own business as a mystery shopper. The company probably prefers using an EIN as it helps them file correctly your status as an IC, and that is what the number should be used for, so you are not giving out your SSN.

this can get quite controversial.....I don't have one and am not getting one. that company doesn't pay enough so I barely shop for them anyhow.

I use my EIN every time I'm able because I don't like giving my SSN to a company I can't physically "see." Who knows what their security is over their data files? I've been the victim of identity theft once before and it was a nightmare so I only give my SSN if I absolutely have to.

Some people here have said their local bureaucracy will tax them if they have an EIN -- but all that means is their business should be taxed and they're trying to avoid it. I have a business license that allows me to operate out of my home; I pay $50 a year for it. Other places I've lived it was $250. Some tax a percentage of your sales. Some towns in California are particularly insidious about demanding people get a business license for every community in which they do business. I have a friend with a business in Hawthorne and the city of Hawthorne came in and harvested his vendor list and sent letters to every one of them demanding they either get a Hawthorne business license or prove they never set foot in that town to "sell" anything to him. Yes, they wanted every traveling salesman who passed across the town border to pay a tax to Hawthorne on the resulting sale.

I would suggest you talk to someone about your local ordinances and find out if you need a business license to operate a business out of your home when you technically do most of the work elsewhere. If you find you don't need a license, then get the EIN. If that would cause you an expensive problem, then give out your SSN.

The difficulty here is "you can't have it both ways." If we are presenting ourselves as a business, not a hobby, for income tax purposes so we can write off all our expenses against our shopping income and deduct any resulting loss from our other income, then we can't/shouldn't simultaneously pretend we are a hobby to our local government and not really running a "business" out of the home.

The more computerized everyone gets, the easier it is for your state, who knows you filed a Schedule C on your tax return, to report that information to your town, who will see that you either do or don't have a business license. And that can happen whether you have an EIN or not.

Use the search function to read some of the other threads on this subject. The company does not need an EIN in order to verify you are an IC. It is also good to investigate if there may or may not be any other ramifications. In some states and municipalities it has no impact on the IC, in others there may be additional fees and/or taxes required.

A little history about the requirement. Several years ago one company attempted to force all their ICs into getting one with the mistaken notion it would protect them from IRS scrutiny when classifying their shoppers as Independent Contractors. After a huge uproar, said company decided to drop the requirement. Fast forward a few years and the company you are referencing decided to to do the same thing. Some shoppers had EINs, some decided to get them and others of us decided it was not worth it for one company.

It's true that having an EIN or not should have NO effect on the companies we work for and it was silly for them to try to require it. For me, it's all about protecting myself from another identity theft situation. You can't steal someone's credit history with an EIN.

Thank you to all who replied. It was helpful. I will definitely look into the ramifications (tax, fees and otherwise) in my area. As far as not having to give out my social security number, unfortunately, that ship has sailed.

I tried to search for past threads to get more info. but when I type in "EIN" or "getting an EIN," nothing comes up. Any suggestions on how to get to the past threads on EIN?

Thank you!

Use the first line of the search feature. It says Google Custom Search. That will usually give you more results and I found quite a few.

mamanina3, after you enter the search for "EIN" are you clicking on all dates?

The Google search is above the Search Messages and Search Authors function. There is no need to click on anything else. Before Jacob added it here, I would often open Google in a separate browser and find more threads, more quickly.

Eureka! I'm finding the threads now. Thanks guys!