From our Business Startup Experts...
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Is it better to use your social security number or employer identification number (EIN) when starting a small home business? – D.A.
In most cases, your EIN is better for your business. It will allow the business to build credit and an identify separate from your personal credit. An EIN is quick and free to get from the IRS.
If you have very strong personal credit, you may need (or want) to provide your SSN to certain suppliers, lenders or investors to get their best credit terms. As soon as practical, however, you should switch the your SSN to your EIN on those accounts.
Another advantage of using your EIN instead of your SSN for your business accounts is that it protects your privacy and you from identity theft. Identity thieves are everywhere, and you can’t be too careful when protecting your social security number.