I am managing passive income rental business with my spouse, and business that is not LLC. If i send a 1099 NEC/MISC for contractors who fix things, can i generate an EIN for myself as sole proprietor and send them 1099 just as myself with EIN ? I live in Texas that is community property state and so it seems that should be acceptable if we file taxes as married filing joint.
Posted by spandey45
2 Comments
Yes, sole proprietors can get an EIN
https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number
The business that you and your spouse own and run… are yall treating it as a partnership *(two or more parties in business together, by default, is a partnership)*, or as a Qualified Joint Venture *(basically treating it as if you’re both sole proprietors.. an option specifically available to married couples)*?
If a partnership.. then the partnership should issue the 1099.. using the partnership’s EIN.
If a QJV.. one of you, whichever spouse will be reporting the contract labor expense on their schedule C, should obtain an EIN individually *(ie, as a sole proprietor)*, and issue the 1099.
And no, you do not need an LLC to obtain an EIN. Individuals can obtain EINs. As can general partnerships. It typically takes about 5 minutes to do so online: [https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number](https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number)