Get an EIN for Security Reasons

Hi June,

LOVE your website and blog. Not only is it informative, but it's damn entertaining as well.

I have a quick question about EIN's. I'm an independent consultant for large companies and firms. I usually go to a company, teach a 2 day-long seminar to its employees and then move on to the next job. I've only been doing this for about 2 years now, but I find that when invoicing for my work, I'm constantly giving out my Social Security number to every company that pays me.

I'm starting to think that from an identity theft standpoint it might be smart to get an EIN to use for my business activities. Should I?

And if I do, can I still use my Social Security number for other reasons (medical forms, year-end taxes, dealing with the Social Security administration when it's time to collect SS benefits, etc.)

Thanks very much, and keep up the good work!
Josh


Hi Josh,

Glad you like my stuff. Thanks.

Yes, by all means get an EIN. Use it for all your business papers. Your EIN and your social security number will be used on your tax return. Both will appear on your federal Schedule C: Profit (Loss) From Business.

You would still use your social security number for all personal paperwork such as medical, etc.

Here's some more info on EINs and how to get one EIN-employer identification # .

Cheers,
June