SSN vs TIN and Self Employment for E2 spouse
 

Can someone please help as I am going round in circles.

I am primary E2 holder.
Husband is derivative spouse and has an EAD and SSN.
He has just started "self employment" and is working as a sub-contractor to a larger company.

Questions:
Does he need to register with IRS as self-employed?
Who pays his taxes, him or the company?
He's been asked for a TIN. I am getting conflicting info from everywhere. Everywhere he tries to apply for a TIN, it says if he has a SSN he doesn't need to.

I have an LLC, single member for my E2 business. Can I somehow have him under my LLC umbrella? Who can I speak to about this? Feeling very frustrated.

Thank you

Re: SSN vs TIN and Self Employment for E2 spouse
 

No. It'll come up when he files his tax return and where it asks for "employer", he'll put "self-employed".


He's self-employed... he should be paying his own taxes.


Then he should give his SSN. They serve pretty much the same purpose.


That's correct. People who get an ITIN get it because they are not eligible for a SSN. Your husband has a SSN, therefore he doesn't need an ITIN.


Why? In what capacity? Does he work for your company?

Ian

Re: SSN vs TIN and Self Employment for E2 spouse
 

My husband was self employed for 2 years just using his SSN and had no problem. Then he actually got a business name and registered the business name with the State of Arizona, and got a Tax ID number (separate from his SSN). His clients were somehow more satisfied that he had a Tax ID number, so that's been beneficial. He pays his own taxes...depending on his profit throughout the year, sometimes he pays quarterly, sometimes he pays lump sum at the end of the year.

Rene

Re: SSN vs TIN and Self Employment for E2 spouse
 

Thanks for your replies:
Ian - with regards to the LLC Umbrella question. Having an E2 makes me feel like the Sword of Damocles is right above my head. Whilst I feel confident my business is doing OK, when I go back to the UK to have my first renewal next year, I want to increase my chances in order to secure a 5 year renewal.

My thinking may be skewed (feel free to tell me if it is), but could I set up another company under my LLC and have my husband run that? Right now he has nothing to do with my E2 business and I am 100% single owner LLC.

I feel like there is no-one to ask apart from you guys. Apologies for my naivety.

Thanks!!

Re: SSN vs TIN and Self Employment for E2 spouse
 

Make sure he's charging enough to cover double the taxes of an employee because he'll have to pay the bit the employer usually covers.

Also as a contractor he'll have to file quarterly taxes unless he's making peanuts to not make it worth the hassle.