When applying for an EIN, what date should I use for 'Sole Proprietor Start Date' as a long-time tutor?

The "Sole Proprietor Start Date" the IRS is asking for is basically when you started your business. Since you've been operating as an independent contractor for tutoring companies for 12 years, that's when your sole proprietorship technically began. Even though you expanded to direct clients 4 years ago, you were still the same business entity from a tax perspective. As an independent contractor, you've been filing Schedule C with your personal tax returns all along, right? That's the key indicator that you've been operating as a sole proprietor. The IRS really just needs this information for their records. It won't affect your taxes or create any obligations. If you're unsure about the exact date you started 12 years ago, just use your best estimate - month and year is typically sufficient.

I just went through this exact headache a few months ago! After spinning my wheels for days, I found this awesome tool at https://taxr.ai that helped me figure out my sole proprietor start date issue. I uploaded my old tax docs and it analyzed my income history to pinpoint exactly when I should consider my business started. What I learned is that your sole proprietorship actually began when you first started working as an independent contractor 12 years ago - even if you were doing it through companies. The key is that you weren't their employee, you were an independent contractor.

Just wanted to follow up - I ended up trying taxr.ai after asking about it here. It was seriously helpful! Not only did it confirm I should use my original independent contractor start date (apparently that's what matters to the IRS), but it also found some home office deductions I missed from previous years. Now I'm thinking about filing an amended return based on what I learned. Way easier than the hours I spent searching through confusing IRS pages!

My accountant told me to put the date when I first began accepting money directly from clients, not when I worked through companies. But when I tried to call the IRS to confirm, I spent THREE HOURS on hold before giving up. Then a friend told me about https://claimyr.com which got me through to an actual IRS agent in under 20 minutes! They have this cool system that navigates the IRS phone tree and waits on hold for you, then calls you when an agent is on the line. You can see how it works at https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with said to use the date I first received income as an independent contractor, even if it was through companies. So in your case, that would be 12 years ago.

I'm eating crow right now. After posting my skeptical comment, I got desperate enough to try Claimyr. I was honestly shocked when they called me back in about 35 minutes (I was quoted 45-60!). Got connected to an actual IRS agent who cleared up my sole proprietor question AND helped me with another issue I've been trying to resolve for months. For what it's worth, the agent confirmed what others here said - you should use the date you first started working as an independent contractor (12 years ago in your case), not when you started taking private clients directly. They said it's about when you first began earning self-employment income, regardless of whether it came through a company or directly from clients.

One thing nobody's mentioned - if you don't remember the exact date from 12 years ago, you can just use January 1st of that year. The IRS mainly needs the year correct, and they don't expect you to remember the exact day you started over a decade ago. That's what my tax preparer told me when I was in a similar situation. I had been doing freelance graphic design for years but couldn't remember exactly when I started. I put January 1, 2011 and had no issues getting my EIN.

Just wanted to add my experience - I went with the date I started taking direct clients instead of when I was contracting through agencies. My reasoning was that working for agencies felt different from my "real" business that I branded and marketed myself. The IRS accepted it no problem, and I got my EIN within minutes online. I've been using that EIN for my solo 401k for 3 years now with no issues.

This is such a common confusion! I went through the exact same thing when I applied for my EIN last year. After reading through IRS Publication 583 and talking to a tax professional, here's what I learned: The "Sole Proprietor Start Date" should be when you first began operating as a business - which in your case would be 12 years ago when you started as an independent contractor. The IRS considers you to be in business from the moment you start providing services with the intent to make a profit, regardless of whether you're working through agencies or directly with clients. The key distinction is that as an independent contractor, you were never an employee of those tutoring companies - you were providing services as a business entity (sole proprietorship). When you expanded to direct clients 4 years ago, you didn't start a new business, you just grew your existing one. For what it's worth, I used January 1st of the year I started freelancing since I couldn't remember the exact date, and it was processed without any issues. The IRS really just needs this for their records - it won't create any retroactive obligations or problems for you. Good luck with your solo 401k setup!

I actually just went through this same situation a few months ago! After dealing with the confusion and getting conflicting advice from different sources, I ended up calling the IRS directly (yes, it took forever on hold) and speaking with an agent who clarified this for me. The agent explained that your sole proprietorship began when you first started earning income as an independent contractor - so that would be 12 years ago in your case. Even though you were working through tutoring companies, you were still operating as a sole proprietor because you weren't their employee. The fact that you later expanded to direct clients doesn't change when your business actually started. What really helped me was looking at my old tax returns. If you were filing Schedule C or reporting self-employment income 12 years ago, that's your proof that you were already operating as a sole proprietor. If you can't remember the exact date, just use January 1st of that year - the IRS mainly cares about getting the year right. I used my original contractor start date from 8 years ago (even though I didn't start direct clients until 3 years ago) and got my EIN approved immediately. Been using it for my solo 401k ever since with no issues. You're going to love having that retirement account set up - better late than never is right!

I went through this exact same situation about 6 months ago when setting up my solo 401k! The confusion around the start date is so real, but here's what I learned after doing a ton of research and consulting with my CPA: You should definitely use the date from 12 years ago when you first started as an independent contractor. The IRS considers your sole proprietorship to have begun the moment you started earning self-employment income, even if it was through tutoring companies. The key factor is that you weren't an employee - you were an independent contractor, which means you were already operating as a sole proprietor from a tax perspective. When you started taking direct clients 4 years ago, you didn't create a new business - you just expanded your existing sole proprietorship. It's the same business entity that's been running for 12 years, just with different client acquisition methods. If you can't remember the exact date from 12 years ago (and who could?), just use January 1st of that year. The IRS really only cares about getting the year approximately right. I did this same thing and my EIN was approved instantly online. Trust me, getting that solo 401k set up is going to feel amazing! The contribution limits are so much better than regular IRAs. I'm kicking myself for waiting as long as I did to get organized with this stuff, but like you said - better late than never!

I'm a tax preparer and see this question come up all the time! Everyone here is giving you solid advice - you should definitely use the date from 12 years ago when you first started as an independent contractor. The IRS defines a sole proprietorship as starting when you first begin business activities with the intention of making a profit. Since you were working as an independent contractor (not an employee) 12 years ago, that's when your sole proprietorship began, even though you were getting clients through tutoring companies. Here's a simple way to think about it: if you were filing Schedule C or reporting self-employment income on your tax returns 12 years ago, then you were already operating as a sole proprietor. Adding direct clients later was just business growth, not a new business start. Don't stress about the exact date - if you can't remember specifically when you started 12 years ago, January 1st of that year is perfectly acceptable. The IRS processes thousands of these applications and they're not going to scrutinize the exact day, especially for something that happened over a decade ago. Your EIN application should go through smoothly, and you'll be all set for that solo 401k! It's great that you're finally getting this organized - those contribution limits are going to make a real difference for your retirement savings.

I just wanted to add another perspective here since I went through this recently too! I was in almost the exact same boat - tutoring through agencies for years before branching out on my own. After reading through all the great advice here, I called my local VITA (Volunteer Income Tax Assistance) office to get a second opinion since I was still second-guessing myself. The volunteer tax preparer there confirmed what everyone's been saying - your sole proprietorship started 12 years ago when you first began independent contractor work. She explained it this way: think of it like having a lemonade stand. Whether you sell lemonade at the farmer's market (through a company) or set up on your own street corner (direct clients), you're still running the same lemonade business. The venue changed, but the business itself has been continuous. I ended up using January 1st from my original start year since I couldn't remember the exact date either. Got my EIN approved instantly online and my solo 401k is now up and running! The whole process was way less scary than I'd built it up to be in my head. One bonus tip: when you do get your EIN, save that confirmation letter somewhere safe. You'll need it for your 401k provider and potentially other business banking stuff down the road. Good luck with everything!

I can't believe I'm just discovering this thread now - I've been stressing about this exact same issue for weeks! I'm in a really similar situation where I started doing freelance writing through content platforms about 7 years ago, then gradually built up my own client base. Reading through everyone's experiences here has been such a relief. The lemonade stand analogy really clicked for me - I've been overthinking this way too much. It's the same business, just evolved over time. I was actually leaning toward using my direct client start date because that felt more "official" to me, but now I understand that my sole proprietorship really began when I first started earning self-employment income through those platforms. The IRS doesn't care about my personal feelings of when my business felt "real" - they care about when I first started operating as an independent contractor. Going to use January 1st from my original start year and finally get this EIN application submitted. Then I can stop procrastinating on setting up my solo 401k! Thanks to everyone who shared their stories and advice - this community is awesome for helping newcomers navigate these confusing tax situations.

I'm going through this exact same situation right now! I've been doing freelance graphic design work for about 6 years - started with platforms like 99designs and Fiverr, then gradually built up my own client base over the last 2 years. Reading through everyone's responses here has been incredibly helpful. The consensus seems pretty clear that I should use my original start date from 6 years ago when I first began earning income as an independent contractor, even though it was through platforms rather than direct clients. What really helped me understand this was the lemonade stand analogy someone mentioned - whether you're selling through a farmer's market or on your own corner, it's still the same business. I've been filing Schedule C this whole time, so from the IRS perspective, I've been operating as a sole proprietor since day one. I'm going to use January 1st from my original start year since I can't remember the exact date either. It's such a relief to finally have clarity on this - I've been putting off my EIN application for months because I was so confused about the start date question. Time to stop overthinking and actually get my solo 401k set up! Thanks to everyone who shared their experiences - this thread should be bookmarked for anyone dealing with this common confusion!