EIN (Employer Identification Number)
Quick definition
A federal tax identification number for a business, which a self-employed driver can use in place of a Social Security number on client and tax forms.
An EIN, or Employer Identification Number, is a free federal tax ID issued by the IRS for a business. A self-employed driver can request one even without employees.
Why a solo driver might want one
Using an EIN instead of your Social Security number on a 1099-NEC or a W-9 to a client keeps your SSN off paperwork that passes through other hands. It does not change how you file: a sole proprietor still reports on Schedule C.
How to get one
You can apply directly with the IRS at no cost. Be cautious of third-party sites that charge a fee to obtain something the IRS provides for free.
Related terms
Sole Proprietorship
The simplest business structure. One person, no separate legal entity, income flows to the owner's personal tax return.
1099-NEC
The form payers issue to report $600+ in nonemployee compensation. If you got one, you are self-employed for IRS purposes.
Schedule C
The federal form self-employed workers use to report business income and expenses, including the mileage deduction.
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