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    5 Replies Latest reply on Nov 24, 2010 2:20 PM by beardog

    SS# versus EIN

    beardog Newbie
      Hello! An earlier question/answer came close, but I wonder...

      As a small, new business (a alternative healthcare provider, LLC business status), I've filed taxs w/SS#, and schedule C (EIN# recognized). REcently I've applied to become a 'preferred provider' with an insurance company and they state that it is uncommon that I may be reimbursed by them with my SS# and must clarify SS# or EIN#.

      1. I will ask an accountant for feedback
      2. what is appropriate/not per method? For instance, I may not want the world (the insurance company employees, etc) to know my SS#..

      any perspective from your experiences and expertise will be greatly appreciated!

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        • Re: SS# versus EIN
          bm911tax Adventurer
          What do you mean by reimbursed by them? For what reason. For 1099 purposes a single member LLC (you) should provide the owners SS# and not EIN#. If you want to use the EIN you will need to be a Corp.
            • Re: SS# versus EIN
              beardog Newbie
              Thank you for your response!

              I've finally agreed to apply to one health insurance company and also to a 'health provider network' that contracts within several other health insurance companies to enable my ability to 'accept' clients rather than have potential clients skip over my services. (I have, till now, offered my services, have clients pay me directly, provide them a receipt that they may submit to their private insurance company for reimbursement). Of course, the insurance companies only reimburse a % of the total, but it has saved me time and paper trail by not having to maneauver the different and changing landscape of each health insurance company, should they even accept me as a preferred provider.

              I submitted with my application, a requested W-9 to the Health Insurance company, filling in both my name, my business name, my SS# and my EIN #. This of course has lead to confusion and my initial inquiry w/in this forum.

              Yes, I am a single member LLC. I contract with two western medical clinics that pay me directly with acknowledgment of my SS# only (when I established work w/in these offices I only had my SS#, no EIN yet).

              As an insurance company preferred provider, I will process mine and client paper trail to submit to their health insurance company and await challenges/reimbursements for my services. As I pay my tax's as an individual, acknowledging $ earned, ect. into my business via schedule C, I agree with you that my SS# may continue to be used. How might the insurance company be viewing this, and considering this an exception rather than a rule? Most importantly is how I establish (which # - SS or EIN) with the insurance company versus discovering later that I need to change it? They must view it as an issue under the potential 'fraud' of $ going to a person for services versus the business name? Perhaps everyone (clients) will have access to my SS# and this could compromise me? Should I perhaps have the insurance company reimburse me to my EIN # that I file w/in my 1040?

              Does this offer a greater explanation to aid my inquiry? I only intend to gain perspective and move forward with the best of intention and appropriate tax process.

              thanks again for your time,
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