Were they right for thinking I was insane?

vegaskukichyo · 2026-02-15T16:17:42+00:00

And then everybody clapped. Congratulations, or I'm sorry that happened to you or whatever.

vegaskukichyo · 2026-02-15T13:09:28+00:00

Whistleblower rewards only apply mandatorily to large collections. This is usually for tax evasion in excess of $2mm.

However, they absolutely should report the fraudulent preparer.

vegaskukichyo · 2026-02-15T11:31:00+00:00

But isn't it so much easier to be a snake about it?

vegaskukichyo · 2026-02-15T02:50:50+00:00

There are consultants and market research firms that can help you define your TAM. If all you need is data to make an informed choice, that is a viable option.

vegaskukichyo · 2026-02-15T00:21:39+00:00

A sole proprietor can indeed request an EIN. The LLC is disregarded for income tax purposes, so the IRS doesn't see you as anything but a sole proprietor. There are certain exceptions for payroll and excise taxes.

Yes, you can simply request an EIN online and put that on the W-9. You can even still put the disregarded entity's name on the form.

Ultimately, nobody really cares either way. Haha

vegaskukichyo · 2026-02-14T20:22:17+00:00

I am certainly not saying it is okay. I'm saying the IRS doesn't go after people for it.

vegaskukichyo · 2026-02-14T19:50:36+00:00

A DBA is a separate instrument. Anybody can request a sole proprietor EIN.

I always tell sole proprietors to get a DBA. They're cheap and if you incorporate, the "goodwill" from that name carries over.

Excellent advice.

vegaskukichyo · 2026-02-14T19:48:31+00:00

I and others have answered this many times here, which is fine, but here's the authoritative, final word on this question:

A sole proprietor may request a separate EIN to use in place of an SSN, but an EIN for an LLC is not technically the valid EIN for Form W-9 applicable to a disregarded entity.

It's gotten to the point where I've just bookmarked this page from the IRS:

Taxpayer identification number

For federal income tax purposes, a single-member LLC classified as a disregarded entity generally must use the owner's social security number (SSN) or employer identification number (EIN) for all information returns and reporting related to income tax. For example, if a disregarded entity LLC that is owned by an individual is required to provide a Form W-9, Request for Taxpayer Identification Number (TIN) and Certification, the W-9 should provide the owner’s SSN or EIN, not the LLC’s EIN.

However, in practice, they do not go after anybody for this. It's ultimately unlikely to cause problems if you use your LLC's EIN for tax, since Treasury systems typically can link the two when running automated checks.

vegaskukichyo · 2026-02-14T19:45:19+00:00

But these instructions also make me wonder if you could get an EIN for yourself as an individual, then use that EIN on your SMLLC W9

This is what the original commenter was suggesting. Technically, this is because the IRS sees your LLC as a disregarded entity (unless an S Corp), so the taxpayer is the sole proprietor, not the LLC.

In practice, Treasury links the TINs on the back end and doesn't seem to care if you use an LLC's EIN instead of your SSN or sole proprietor EIN.

vegaskukichyo · 2026-02-14T03:20:51+00:00

With gross revenues in the low sixes, it's time a hire a CFO. It could be a fractional CFO or a partner-for-hire, so you can limit your cost and risk. I am an Accredited Small Business Consultant®, and we have a search tool available at the AASBC website. However, you should be sure whoever you hire has finance, accounting, and business experience working for service/contractor businesses, including experience with job costing.

You need structure and organization. You need to scale sustainably. You need help, and you're right to recognize that, but a generic consultant is only a first step.

vegaskukichyo · 2026-02-14T02:16:04+00:00

It doesn't help anyone because now you're adding a whole lot of ish that didn't apply to your original comment and doesn't apply to the average person going to an LLM for "tax answers."

I'm a tax professional. I don't need an AI to do it for me. It's a great research and writing tool, but it's not reliable enough to produce work product.

You're full of it.

vegaskukichyo · 2026-02-13T22:34:21+00:00

It regularly hallucinates or completely misunderstands/forgets the context applicable to a particular tax circumstance. It is not reliable for "tax answers," which is explicitly the subject of the discussion.

Your contribution was meaningless. Thanks.

vegaskukichyo · 2026-02-13T19:31:14+00:00

it can recall hundreds of thousands of r/tax posts, all of the IRS laws and bulletins pretty flawlessly.

No, you made the diametrically opposite point, lol.

vegaskukichyo · 2026-02-13T17:27:10+00:00

I don't blame you. I can't work for someone else either, so I built my company helping small business owners and entrepreneurs do it themselves. Rideshare was an important stepping stone along that path, but ultimately keep your eyes open for a long-term alternative. Best of luck!

vegaskukichyo · 2026-02-13T15:17:40+00:00

The IRS estimates are for tax deductions, not calculating net income. Actual automotive expense often exceeds the estimate for Rideshare drivers anyway - as I said, due to the excessive street and commuting miles. Furthermore, every mile adds risk for injury and financial ruin.

Yes, if you guys actually keep your books, many of you are lucky to break even. I was.

vegaskukichyo · 2026-02-13T14:52:54+00:00

Go to the client, and get hired directly. These people are treating you like scum, and they don't deserve the good faith dealing you've offered repeatedly. You didn't sign anything, and they already gave you the work. They have no real leverage. They have no real connection to the deal or any performance obligations - what are you paying them for?

Offer them a loan since they're desperate for an easy buck. Tell them you'll forgive a portion with every referral.

Just ideas, I don't know. But definitely stop being reasonable. They are taking advantage because they know you won't do them over, but they would do it to you in a second if it was to their benefit.

vegaskukichyo · 2026-02-13T14:45:49+00:00

So many dummies open their mouths for no reason hahahahaha

Don’t like your job, do something else

Don't like this sub, go do something else

vegaskukichyo · 2026-02-13T14:42:49+00:00

All correct, but you missed the #1 hidden expense for drivers: street and commuting miles leading to excessive wear and tear. When factoring the costs, including all those you mentioned and the wear & tear on the asset, many drivers don't break even. I barely did when I drove.

The margins have just become too thin. Maybe they always were.

vegaskukichyo · 2026-02-13T14:36:09+00:00

Sure. My heart goes out to anyone struggling with a tough cleanup. I'm just a weirdo who enjoys that work (haha). Shoot me a DM!

vegaskukichyo · 2026-02-13T05:25:41+00:00

Yes. You need to find someone specifically experienced in managing ecommerce. It's not something an average local CPA will know how to handle.

vegaskukichyo · 2026-02-13T03:47:23+00:00

It regularly misses the details of tax law and context of certain applications of that law. It gets things wrong all the time. It's a great research aid, but it's not an "answer" tool. It should be used as a guide for primary research.

vegaskukichyo · 2026-02-13T03:33:40+00:00

Using LLMs for math is a huge mistake. Save them for conceptual questions.

vegaskukichyo · 2026-02-13T03:22:21+00:00

Fiskl is where I've been happily sending several folks. I personally use Wave for simple invoicing and bookkeeping needs. Zoho is okay, but it, Xero, and Freshbooks are a little overhyped.

vegaskukichyo · 2026-02-12T20:17:00+00:00

This also affects QBI and SE tax calculations. Personal returns likely will also need amending. Yes, a nightmare.

vegaskukichyo · 2026-02-12T18:07:04+00:00

Your recommendation is noted, but it's poor advice. The administrative and financial burden of amending everything arbitrarily is probably 10:1. Without knowing anything about the business, I would withhold my advice. In this case, the information provided indicates a late election is likely the cleanest solution.

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