Do you run business on Internet? Are you planning about it? If so, first few steps you have to take–or do right now if you are doing business already is to get EIN number from IRS. Devoid of getting an EIN, finances can get quite confusing, but more vitally, you’re opening yourself up to possible identity theft.
- What is an EIN
An EIN number that’s also being used in Ss4 online from IRS is like social security number for the business. It is also known as a “Federal Tax ID Number.” Even if you’re operating like a sole proprietor, you can get an EIN from IRS. EIN would be nine digits long–something such as 20-1234567.
- User o EIN
If you’ve ever joined any type of affiliate program, you know they normally ask for the social security number–as needed by law for the tax purposes. However, offering such information could lead to numerous problems. Once you give company the social security number, they have a comprehensive personal profile on you, which can lead to identity theft.Even if company is reputable, are all employees? What about each and every one with the access to such data? Is the data safe? Unlike social security number, the EIN number that also being used in Ss4 online cannot be used for private credit purposes. Thus, whenever you’re asked for the social security number, you’ll use EIN instead.