software development

[sharon.b...@gmail.com]

My son is a college student studying computer science. He has been
asked to develop software for a large travel agency. This work will be
done as 'contract labor' with him earning an hourly rate and they have
asked for his tax ID number. Is he better off starting a business, and
possibly incorporating, than giving him his social security
information? He plans to do this type of work throughout college. This
job will probably result in around $5,000 in income.
Thanks you for any advice you can provide.

[webmasterflo...@gmail.com]

Hi Sharon,

I would suggest talking with your accountant or someone at the nearest
not-for-profit Florida Small Business Development Center for advice on
whether your son should set up a business.

http://www.floridatrend.com/small_biz_article.asp?aID=46835

If he does set up the business, here is information and the form to
receive a federal Employer Identification Number that he would provide
to customers instead of his Social Security number. He does not have
to incorporate to register for the federal EIN.

http://www.irs.gov/pub/irs-pdf/fss4.pdf

I hope that helps.

Barbara Miracle
Editor
FloridaSmallBusiness.com