Many sole proprietors start their businesses using their Social Security Number for tax and banking purposes. While this is allowed, it can expose personal information which is not ideal for small business owners. If you are a sole proprietor, applying for an Employer Identification Number (EIN) is a simple, free way to protect your privacy and give your business a more professional presence. Why Should Sole Proprietors have an EIN? An EIN is a unique nine-digit number given by the IRS to identify your business for tax purposes. It acts as the business's social security number and can be used on tax forms, bank accounts, and business licenses. Having an EIN allows business owners to protect their privacy by using the EIN in place of their social security number. An EIN can also simplify taxes and banking for your small business, as it is often required to open a business bank account or apply for business licenses. Even if you are the only person in your business, getting an EIN ...
This blog posts answers to questions given to us by ministers and others serving in Christian ministries advancing the gospel of Jesus Christ. It also discusses other financial topics that those in gospel ministries face. We trust the information provided can be helpful to you.