POD. KDP. EIN. SSN. TID. WTH? Ask NCPA.
Not everyone is comfortable sharing information online, even when it’s required.
If you’re self publishing and/or using Amazon’s Kindle Direct Publishing (KDP) to print your books on demand (POD), you will notice that you have to hand over your social security number (SSN) or TID (Taxpayer Identification Number) in order to set up an account and get started. You also need to hand over your bank account info so they can pay you royalties (lots, hopefully!). In the age of cyber and identity theft, many people are uncomfortable sharing that precious information — as well they should be. Our friends over at the Northern California Publishers and Authors (NCPA), have suggestions.
EID: You don’t have to use your SSN, actually. What do you mean? you may ask. I have to give them a legal identifying number or I can’t sign up. Well, instead of using your SSN when you sign up for your Amazon KDP account, there is an option to provide an EIN, or Employer Identification Number. Do it. Use your EIN instead of your SSN or TID! It’s that easy.
But I don’t have an EIN, you might say.
Then get one!
Many people assume that to get or have an EIN you have to run a business or at a minimum, hire employees (hence the Employer part of the acronym). But no, you don’t have to be or have either. As a writer, you are a business. Gasp! And get this — it’s free to get an EIN directly through the IRS, online. Double gasp! Tell me more! Click here for the direct link on how to secure an EIN. You *will* have to give your SSN or TIN to sign up (they need some way to track you, it is the government after all)–but you’ll be giving it directly to the IRS.
Sharon Darrow, president of NCPA, cautions, “DO NOT waste time and money going through a third party, because they often charge and can take longer because your application has to be submitted through the IRS.” She finds the EIN page “clear as mud,” but it’s not too bad for government work (wow, two government burns, nice, Kemper). The app should take about 15 minutes to complete. And, Ms. Darrow feels, is worth it. “Using the EIN not only protects your privacy, but makes you look a little more professional.”
Uncomfortable with completing the form online? The bottom of the page has a form you can download to apply through the mail.
BANK ACCOUNT INFO: Kindle also requires your bank account. No, they aren’t being nosy, they need it in order to get you your moolah from book sales. Ms. Darrow has another suggestion that is “very simple and helpful for your tax records.” And I agree. “Set up a separate account for your writing business,” she says. “Even if you only have a handful of transactions a year, it protects your privacy and is more professional. Make sure you are getting an account with the bare minimum or no fees, and ask your banker if it’s connected to any of your other accounts in a way that an outsider could access. If you are especially worried, set up the writing account at a bank or credit union where you have no other accounts. This way, you can give the bank account information to Kindle with no worries.”