PDA

View Full Version : Who has their business tax ID as their SS#?


Ramairfreak98ss
11-19-2009, 12:48 PM
ours has always been "my ss#"

I've always run into walls here and there for financing on equipment mainly in the past years, doesnt seem to get any better year after year either.

I was reading last week that you should never have your company credit as part or attached to your "personal credit", but this is the only way ive ever known to apply for bank credit, credit cards or merchandise accounts.

Our deere commercial account dealer said that our tax ID of the business shouldnt be the same as the SS# because your applying for commercial lines accounts with your business "not personally".

HOW do you establish credit to your business? I dont think our business even has credit... and maybe this ties into why we've been denied for bid bonds this past year? My personal credit isnt awesome, but mainly because of a few poor issues over 7 years ago before opening the business. Since then, were never late on anything, pay on time, pay the whole payment of the invoice amount "so as to not pay interest on credit cards 90% of the time" and pay loans for trucks, tractors and plowing equipment.

Its been so rough for myself to get equipment and loans that a lot is through my better half's credit since her score is much higher, 750+ but doenst make a lot of money and is younger.... but im guessing mostly depends on the score only.

My personal score last year dropped almost 100points simply because instead of paying off the two credit cards we used each month fully, i rolled over the amount for a month and a half until they could be paid in march 09 when our invoices started to finally get paid for winter snow removal. Sucks but ive been told any blip can severely decrese your point score.

What do you have setup for your business big or small, 1 man or 10?

Rick Beaver
11-19-2009, 01:19 PM
You must be a sole proprietor or in a partnership, thus the gov't uses your SS as an ID. If you are one of the above your personal credit will associated with your personal and business credit. If you are a corporation or LLC then the gov't assigns you a Federal Tax Id. I was a Florida Corporation for 30 years. I had excellent credit and was still required to sign a personal guarantee for credit. Think about becoming a corp or LLC as it does protect you personally against a major lawsuit or claim against your business. I would be more than happy to discuss further. My email is below. This should be a private decision. Do you have an Accountant?

Ramairfreak98ss
11-19-2009, 01:25 PM
You must be a sole proprietor or in a partnership, thus the gov't uses your SS as an ID. If you are one of the above your personal credit will associated with your personal and business credit. If you are a corporation or LLC then the gov't assigns you a Federal Tax Id. I was a Florida Corporation for 30 years. I had excellent credit and was still required to sign a personal guarantee for credit. Think about becoming a corp or LLC as it does protect you personally against a major lawsuit or claim against your business. I would be more than happy to discuss further. My email is below. This should be a private decision. Do you have an Accountant?


dam, well im gonna have to look over our docs from years ago... were an LLC filing and dont think ive ever seen this number :/

Rick Beaver
11-19-2009, 01:28 PM
If you are an LLC you should have a Federal Id #. Do you have an Accountant you work with?

mkortas
11-19-2009, 05:31 PM
You can get a new tax ID# online in a matter of minutes. Goto irs.gov, it's very fast and easy.

shade tree landscaping
11-19-2009, 05:37 PM
def get a tax id number. I wouldnt give out my SS# to anyone!!!!!

White Gardens
11-19-2009, 05:53 PM
You must be some type of corporation in order to fully take advantage of your tax ID number.

If you are a sole proprietorship, then they automatically refer back to your SS# when applying for credit as your business is not covered by the corporate cloud. The only time you really use your business tax ID as a sole proprietor is if you are paying taxes quarterly for employees.

Even when you start a corporation, you have to refer back to the owners SS# in order to start establishing credit for the corporation. The best way I was told to do that is establish smaller credit accounts under your tax ID# until the credit for the corporation is established.

This info came from a mentor in the SBB.

unkownfl
11-19-2009, 07:29 PM
Secured lines of credit. You as a share holder put money in a cd with a bank and bank gives you a line of credit. Is the easiest way.

bohiaa
11-20-2009, 07:52 AM
it's called an ein

Ramairfreak98ss
11-21-2009, 06:49 PM
You can get a new tax ID# online in a matter of minutes. Goto irs.gov, it's very fast and easy.

thanks, that worked! Yeah , ive never liked the social s# being on anything.

Yes we have an accountant finally, a costly one! Well we should have had one a few years ago by this point but ive always swore i could handle what little spreadsheets that we have... which is just getting out of control by 2009...

Tom3982s
11-21-2009, 11:43 PM
For me I hired an account for 5 hours to get me going, it was worth every penny.