Student loan debt doesn’t prevent you from applying for a tax ID number, or EIN. You’re free to found your own company and operate it. You’re legally required to apply for an EIN if your company has employees or when forming a partnership or corporation. Sole proprietorships or single-person LLCs aren’t required to get an EIN, but applying for one provides easier accounting and better personal data security.
Starting up your own business while still paying off student loans is not impossible; in fact, many successful professionals do exactly that. Here are ways to make a smooth transition from student to business owner:
If you decide to file for EIN and form your own business, having legal assistance makes things much easier:
Choosing Your Business Type
There are significant advantages to each type of company, whether single-person LLC, partnership or corporation. When forming a C corporation or S corporation, trusted advisors who explain the process to you and assist with filing are a huge help.
Tax Filing and Student Loans
Knowing what you can and can’t deduct from your taxes related to student loans helps you avoid getting into trouble with the IRS. Student loans aren’t counted as income – unless forgiven – but they’re also not completely deductible.
Contact our helpful experts for assistance with your federal EIN application and other legal documents to get your startup off the ground smoothly.