Three simple steps to make an EIN for Technical Consulting

Go to this website: https://www.federal-ein-application.com and follow these steps

Three simple steps to make an EIN

Step 1) Click the top button "Sole Proprietor or Individual"

Step 2) Fill in your information (name, ssn, business name, where you live) & click next

Step 3) Fill in information on why you need an EIN and what you do

Reason: "Started New Business/Personal Use"

Primary Activity: Other

Product/Services Offered: Information Technology Consulting

Date Business Started: Today's Date

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A couple common questions about being a Corp-Corp

What is the big difference between being a W2 and a 1099 (aka Corp-Corp)?

You get money quicker as an employee.  As a "corp" you only get paid after you invoice (typically it take 60 days until you receive your 1st check).  As an employee you get your 1st check two weeks after you start.  

What things do I need to do as a "Company" instead of as an "Employee"?

In a W-2 you receive a salary, but in a Corp-Corp contract you receive payment.  Even though all money is green, getting money as a "payment" is different in 3 ways.

1. Payment Terms
2. Invoicing
3. Quarterly taxes to the State and Federal Government

What are "Payment Terms"?

This is the part of the contract that define when you can invoice and how long you have to wait for your invoice to be paid.  Usually the payment terms are "Net 30 - Invoice Monthly".  This means you invoice your customer at the end of the month and the customer has 30 days to pay the invoice.  

How do I do invoicing?

USE ZOHO!  Your customer will tell you what they want to see in their invoice.  Cloud-based service (like zoho) can make invoicing a simple task and will save you hours with your accountant.  For tax purposes, I highly recommend having a customer's EIN in the invoice.

What does making an EIN do?  Does this have any Legal Implication?

The EIN is an identification number that you can use instead of your SSN.  Your legal/tax status has not changes because you have an EIN.  You just have another way of identifying yourself on: Taxes, Employment Contracts, Articles of Organization (for making an LLC), ets.

If EIN doesn't make me an LLC, why do I need it to do corp-corp contracts?

No, you are still just you... but this EIN let's you do the following

1. Contract with vendors that require an EIN for their "Corp to Corp" contracts
2. Fill out the one-pager "Articles of Organization" to become an LLC in your state