Do I need legal coverage for my business if I do not have a TIN?

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Do I need legal coverage for my business if I do not have a TIN?

I use my SSN as my TIN since I do not make enough at my business to pay taxes and, as I understand it, that is the reason I do not have a TIN.

Asked on September 27, 2015 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

What do you mean by "legal coverage"? If you mean some protection from liability, then yes--any and every business person needs some liability protection, so that in the event of a business-related debt or lawsuit, his/her personal assets e.g. home, car, personal bank account, etc. are protected. To get that protection, you will need to establish an LLC or corporation which you can do regardless of how little you expect to earn and get a TIN which again, you can get regardless of earnings and run the business under that structure. You should also buy the appropriate insurance. 
If you are asking about something else, please repost your question with additional clarification.


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