Sole-Proprietors, Prevent Identity Theft

Obtaining an EIN or employer identification number is a good idea if you are a sole-proprietor. >From time to time, you'll be asked to provide your social security number or employer ID to clients or governmental agencies. Once you do that you have no control over which client employees and others can view your number. With identity theft an ever increasing problem, reducing the need to give out your social security number can only be a good idea. The best way to do that is to have an employer identification number. In fact, having an EIN is mandatory for almost any business that is set up as something other than a sole-proprietorship. This is the IRS checklist for businesses that are required to have an Employer Identification Number.