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Employee
January 30, 2025
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Husband and wife owning rental, applying for EIN

  • January 30, 2025
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I and my husband own 5 rental properties. We need to issue 1099-NEC to our contractor. We do not want to give our SSN so we want to apply for EIN. What type of legal structure do we need to elect? Sole proprietorship or partnership?
    Best answer by PatriciaV

    It depends. If one of you choses to be the entity who issues Form 1099, choose Sole Proprietorship. However, if you jointly own the rental properties and are also interested in liability protection, you may wish to form an LLC. Your best option is to consult with a legal or tax professional near you who can advise you on the best option for your business situation.

    1 reply

    PatriciaV
    PatriciaVAnswer
    Employee
    January 31, 2025

    It depends. If one of you choses to be the entity who issues Form 1099, choose Sole Proprietorship. However, if you jointly own the rental properties and are also interested in liability protection, you may wish to form an LLC. Your best option is to consult with a legal or tax professional near you who can advise you on the best option for your business situation.

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