# tax payer Identification number for new green card holders



## gercan (Feb 10, 2008)

Hi All,

I'm a little confused about this (TIN) taxpayer identification number vs. the social security number. As new green card holders we now have a social security number. We are self employed providing internet based services to clients world wide. We are invoicing all new business to our California address. We will maintain our business activities as self employed until 2009 than we will incorporate. We just had a request from a US client for our taxpayer identification number. To the best of my knowledge our TIN is a W-8 for foreign status? Should we instead be providing our social security number? 

Thanks 

Gercan


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## twostep (Apr 3, 2008)

Very basically W8 is certificate of foreign status for tax reporting/withholding. 

SS# is one form of TIN. In your case as individuals the appropriate one.

As greencard holders you have to file US taxes so W8 is not applicable. Your business license should reflect your SS# and you report your earnings under your SS#. Your client is asking for your SS#.


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## synthia (Apr 18, 2007)

Have you set up a company? Because that company may have a separate TIN. Also, if you are selling something wholesale (to another company for resale), they may have been referring to the identification number you get from the state that allows you to sell without charging sales tax.


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## gercan (Feb 10, 2008)

synthia said:


> Have you set up a company? Because that company may have a separate TIN. Also, if you are selling something wholesale (to another company for resale), they may have been referring to the identification number you get from the state that allows you to sell without charging sales tax.


Hi Synthia, 

Thanks for your reply. No we are planning to set the company up starting Jan 01/09. We will declare what ever income we make until then as self employed. Our business simply provides a service over the internet, there is no products being sold. We can work from virtually anywhere and we do, all we need is our laptop and internet connection. As I mentioned our clients are world wide and there are only a few that are American based. 

We have thought about registering the company in Nevada as an S corp but I think we still have to pay California state taxes on any income that is generated from our home office if it is based in California. So it might be best just to incorporate in California. Do you know anything about how different states tax Internet based service companies? 

The big problem is that we are still stuck in Canada trying to sell our home!  We can't move fully until we do this. It's horrible being in limbo like this. 

Thanks 

Gercan


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## Bevdeforges (Nov 16, 2007)

You might want to take a quick look at the article on "Internet taxes" in Wikipedia.

This is a really tricky area right now in the US, and one that is subject to change no matter where you go or how you set up your company. If you're headed for California, you may want to put off incorporating your business until you can talk to an attorney in California who can advise you on the pros and cons of incorporating in the state or elsewhere.
Cheers,
Bev


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## gercan (Feb 10, 2008)

Thanks for the tip regarding Internet taxes. This is definitely something to watch out for should they lift the moratorium. We will speak with a lawyer before we incorporate. We want to make sure we are in full compliance with both state and federal tax laws. 

Gercan


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