Why Use an EIN
An EIN Protects Privacy and Ensures Business Stability
Understanding EIN and Its Benefits
- Employer Identification Number (EIN) is crucial for tax filing, business entity registration, loans, and more.
- EINs uniquely identify taxpayers, including corporations, partnerships, and limited liability companies.
EIN vs SSN
- Most sole proprietors can use their SSN but considering an EIN is beneficial.
When to Use EIN
- Required for businesses with employees or specific retirement plans.
- Obtain a new EIN when changing business type or ownership.
EIN for Credit Applications
- Generally, use SSN for tax forms and check with lenders about accepting EINs.
- EINs can impact credit history but offer protection against fraud.
Applying for an EIN
- Apply online with a valid Taxpayer ID Number. Limit one EIN per day.
Additional Information
- Banks allow some accounts with ITINs instead of SSNs.
Conclusion
- EINs create a separate business identity and financial stability.
Note
- Refer to IRS guidelines for clarity on EIN necessity.
- Banks like Chase, Wells Fargo, and Bank of America accommodate accounts without SSNs using ITINs.