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Required to give SS# to affiliate networks?

by juztryinitout2013
11 replies
I'm just starting out in the affiliate world. Thinking about joining clickbank and/or commission junction. My question is providing my SS# to companies. Is anyone else concerned about identity theft? Should I or can I apply for an EIN or do I need to form a business to get an EIN?

Any input will be greatly appreciated.
#affiliate #give #joining affiliates #networks #required #requirement for joining #ss# #tax id
  • Profile picture of the author Janice Sperry
    You are in a sense forming a business when applying for an EIN but it can be simply a name. You can be self-employed and you do not need employees. I have found an EIN a very helpful thing to have for many reasons.

    You can apply for the EIN online through the Internal Revenue service. This is free of charge and only takes about 10 minutes. Do not use one of the third-party online services to obtain your EIN. They will charge you for something that is free and is very simple to obtain.
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    • Profile picture of the author juztryinitout2013
      Originally Posted by Janice Sperry View Post

      You are in a sense forming a business when applying for an EIN but it can be simply a name. You can be self-employed and you do not need employees. I have found an EIN a very helpful thing to have for many reasons.

      You can apply for the EIN online through the Internal Revenue service. This is free of charge and only takes about 10 minutes. Do not use one of the third-party online services to obtain your EIN. They will charge you for something that is free and is very simple to obtain.
      Can I apply as an individual or will i have to create a business entity?
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      • Profile picture of the author OnlineStoreHelp
        Originally Posted by juztryinitout2013 View Post

        Can I apply as an individual or will i have to create a business entity?
        You do not need to get an EIN to start. The reason they need your social security number is because if you have more then $600 a year in earnings, they need to send you a 1099 and report it to the IRS. It is all about uncle Sam getting his cut . Start out with your SSN and then if you feel like the business is growing and you need to form an entity, then look into it.

        As for identity theft, it is always a risk but then again, think about when you go to a restaurant and the server walks away with your credit card and drivers license...
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        • Profile picture of the author solartime
          The first time I applied to an affiliate network and was requested for my social security number I almost didn't go through with it. I was sooooo concerned as to why they would be asking me for such personal information right out the gate. And before I was even approved too. It felt very uncomfortable to say the least.

          But then I later realized that any time any substantial amount of money is being made (especially within the US) the gov wants to know all about it. So that they can charge you taxes on monies earned. Affiliates, independent contractors, freelancers, etc are at some point all required to submit their SS# to the companies and/or networks so that taxes can be filed on both sides (yours and theirs).

          This is a normal procedure. Just make sure they are a real company/network and reputable. Many CPA and affiliate networks will not be able to work with you without receiving some sort of tax identifying information on file such as a SS#.
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          • Profile picture of the author juztryinitout2013
            Originally Posted by solartime View Post

            The first time I applied to an affiliate network and was requested for my social security number I almost didn't go through with it. I was sooooo concerned as to why they would be asking me for such personal information right out the gate. And before I was even approved too. It felt very uncomfortable to say the least.

            But then I later realized that any time any substantial amount of money is being made (especially within the US) the gov wants to know all about it. So that they can charge you taxes on monies earned. Affiliates, independent contractors, freelancers, etc are at some point all required to submit their SS# to the companies and/or networks so that taxes can be filed on both sides (yours and theirs).

            This is a normal procedure. Just make sure they are a real company/network and reputable. Many CPA and affiliate networks will not be able to work with you without receiving some sort of tax identifying information on file such as a SS#.
            I get the reasoning behind these companies needing a tax id or SS#. We all have to pay our taxes. I'm concerned with the security aspect of supplying my SS#. It seems like most of the people that replied here didn't have a problem with supplying it. Has anyone preferred to go ahead with the EIN route? I gather from the replies...it seems like a headache to get an EIN.
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            • Profile picture of the author BryanPost1985
              agree. its for tax purposes. as you really wanted a FEIN# there are no fees to get a sole proprietorship setup
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            • Profile picture of the author OnlineStoreHelp
              Originally Posted by juztryinitout2013 View Post

              I get the reasoning behind these companies needing a tax id or SS#. We all have to pay our taxes. I'm concerned with the security aspect of supplying my SS#. It seems like most of the people that replied here didn't have a problem with supplying it. Has anyone preferred to go ahead with the EIN route? I gather from the replies...it seems like a headache to get an EIN.
              Well I never needed to since I had an LLC already formed for other business ventures and I just used my TIN for that. If it is something you are concerned about then go ahead for the EIN but really, your SSN is out there anyway. Just look at the number of data breaches at hospitals:

              Report: 94% of US hospitals suffered data breaches, and 45% had quintuplets | Naked Security

              At least the affiliate networks are theoretically better at the tech side of things...
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              • Profile picture of the author telewarrior
                Hi,

                I have been wrestling with this for quite a while and have looked into it fairly deeply. While I am certainly not an attorney and this is not legal advice, there are a lot of people wrestling with this issue.

                An LLC doesn't automatically avoid needing to give a SSN. For example, a single member LLC is usually filed as a pass through entity (its default) and Form W-9 requires the owner to fill in their TIN/SSN as the id of the actual filer on another line on that same form. Form W-9 has even recently updated to make it very, very clear about the several combinations that can be used as people keep ignoring the details and just winging it when filling it out.

                For myself, identity theft was the initial driving force, but as one fills it out under penalty of perjury, due diligence is needed to avoid an orange jump suit and unwanted room mate if things get sticky.

                The most sure way that I have uncovered for using only single member LLCs is to have two with one owning (being the sole member of) the other. The "parent" has to be taxed as a C-corp (some timing rules apply for filing the change) so that there is no pass through to the SSN of the owner, This allows the other line on the W-9 to use a second EIN instead from the "parent" LLC.

                Of course, YMMV and I am certainly not an expert, (where are my disclaimer links?) but I have paid a lot to learn about this expensive yet known arrangement.

                I have come across a couple of other approaches, but this one seems to be the most solid. Of course, the "parent" has to perform as a C-corp with all the operational issues, but there are unique write offs available once good growth happens.

                Make sure to file in a state that has charging order protection. Some research and legal advice to validate what you find is certainly in order.

                Hope this helps someone by at least raising some good issues or opening up other areas to research.
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                • Profile picture of the author telewarrior
                  Hi,

                  Sorry for serial posting, but I just verified with Uncle Sam (still do due diligence for yourself of course) a way to work around the problem found in someones blog about this a couple of years ago.

                  What they confirmed is that the owner of a single member LLC can get two EINs, one as the LLC and one as a natural person (as if you were going to hire someone to mow the lawn). That provides a tax id for both parts of Form W-9 while protecting the owner's SSN. They even said that this approach is not unusual in the case of single member LLCs with pass through taxation. I took down the operator numbers and even talked to the supervisor to double check.

                  I even went through the idea of selling my own products and having to provide tax ids for 1099s, outsourcing, etc. The products for resale that I used was Amazon, but they were completely okay with my wanting to not hand out my SSN.

                  The "penalty of perjury" part got a laugh but they did acknowledge that I am doing due dilligence to get this right, and documented (got names, operator ID, took notes, and the call is in my phone's log).

                  They are making a new publication already to illustrate how to fill out Form W-9 under various scenarios and I strongly suggested that they include this scenario as many single member LLCs likely have this same issue.

                  Putting all of this down in the WF is a bit "out there" I suppose, but if you want to resell anything for commission, this applies to many or most of us.

                  Please, please, please make sure to do your own checking, but as a direction to go this looks like it is going to help a great deal as it keeps the easy tax structure in place.

                  YMMV (Your Mileage May Vary)
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  • Profile picture of the author jasondinner
    Originally Posted by juztryinitout2013 View Post

    I'm just starting out in the affiliate world. Thinking about joining clickbank and/or commission junction. My question is providing my SS# to companies. Is anyone else concerned about identity theft? Should I or can I apply for an EIN or do I need to form a business to get an EIN?

    Any input will be greatly appreciated.
    Im not 100% sure, but you may be able to get an EIN if you create a DBA (Doing Business As) type of entity.

    Either way, I wouldn't worry about your identity being stolen because you submitted your SS# to sites like Clickbank, etc. unless your network has been compromised by a hacker or identity thief.
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  • Profile picture of the author FranksToys
    I'd consider getting the ball rolling and get yourself an EIN.

    No sense in having your SSN out there unnecessarily and it's easy to get an EIN. It will also help you keep everything organized for your business purposes.
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