New New RE agent tax question need some feedback for a friend ;)

[JDee Moore]

Hypothetically, if someone is signing their eXp realty contract as a new RE agent would anybody share a story why would "one" use a EIN number versus a SS number when filling out the W9?

NOTE: If that "someone" just received their EIN number a month ago and haven't used it on any business related documents and do not have any employees nor have filed a LLC but like to take advantage of the benefit of doing business under an EIN, is this a common move for RE agents?

Thanks in advance.

[Charlie Cameron]

@JDee Moore it sort of depends on how much you make. Sorta. I'M NOT A CPA so let's get that out there. But my CPA suggested that since my business is starting to pick up to file my agent LLC (which will then elect to be taxed as an S Corp) for 2021. This is all for tax purposes rather than liability (we get E&O coverage already for that). Should reduce self employment taxes and will eventually be beneficial for other reasons like healthcare (not an issue for me yet). You can switch from SSN to EIN later.

Another note, make sure your filed business follows state requirements for naming convention and entity type. There are specific requirements per state for filing your agent business.