Am I a 'disregarded entity'?
The US IRS classifies certain business entities as "disregarded" for tax purposes: business income is considered personal to the owner. The IRS says this term applies only to single-owner LLCs (not partnerships, S-corps etc).
However, I've had a sole prop/DBA for many years that has its own identity, mailing address and EIN. I report on schedule C using this separate EIN. All invoicing, banking, advertising etc is done under the entity name. This is a close parallel to a single-owner LLC, but it isn't one -- it's been around longer than those.
I'm trying to set up a Kindle self-publishing arrangement with Amazon but in the 'tax interview' they seem to think this arrangement can't exist -- at least they don't have a slot for it. If I'm a DBA, they want to use my SSN, saying that sole props don't have separate EINs. And yet... I do, and I want to use it and the entity name and bank account.
Is there something I'm missing here? Is my DBA really a 'disregarded entity' even though it doesn't fit the IRS criteria?
(1)1 Comments
Sorted by latest first Latest Oldest Best
Since the income is reported on your personal return via Schedule C, your business is a disregarded entity. Having an EIN doesn't change that status, it just allows you to not use your SSN for everything.
Amazon may be unnecessarily rigid, but according to the IRS you don't need an EIN if you don't:
Have employees.
Operate your business as a corporation or a partnership.
File any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms
Withhold taxes on income, other than wages, paid to a non-resident alien.
Have a Keogh plan.
Involved with any of the following types of organizations:
Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
Estates
Real estate mortgage investment conduits
Non-profit organizations
Farmers' cooperatives
Plan administrators
So Amazon is probably just using your lack of need for an EIN as a rule that you shouldn't have one, might contact their support since you want to use the EIN.
Terms of Use Privacy policy Contact About Cancellation policy © freshhoot.com2026 All Rights reserved.