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.