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According to the IRS, sole proprietor must apply for EIN the moment he hires first employee and must use this EIN for tax purposes.

How Schedule C(s) should be filed if first employee is hired on June 30?

  1. Can business owner file two Schedule C(s) - one under SSN for first half of the year and second Schedule C under EIN for second half of the year? Or
  2. Can business owner file single Schedule C under EIN for the whole tax year?

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You can fill out the schedule C form for the entire year. The instructions say to put the EIN assigned to you on line D, so you should do that. It doesn't matter when you got the EIN. Since it is your schedule C field with your tax return, it is already under your SSN.

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  • And if I want can I file two Schedule C forms - first under SSN second under EIN - can I do that? The reason I am asking is because as new employer I was very confused about PPP loan and first time applied only for employees under EIN. Second time I applied under SSN for the forgotten owner's compensation. Now one of the lenders is claiming that this would put forgiveness in jeopardy, but SBA over phone told me that as long I file two Schedule C I am all good. So my plan is to file two Schedule Cs and call it a day. Jun 25, 2020 at 21:59
  • @user389238 I don't know of any reason you can't file two schedule C's if you want. Jun 25, 2020 at 22:25

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