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!