How to Use EIN as Social Security Number
How to use EIN as Social Security Number is a common question. Your business EIN is similar to a person's SSN, but can you use one for another?4 min read
How to use EIN as Social Security Number is a common question among entrepreneurs. Your business EIN is similar to a person's Social Security Number, but can you use one for another?
What Is EIN?
EIN means Employer Identification Number. It is also known as a Federal Employer Identification Number (FEIN), Tax Identification Number (TIN), or Federal Tax Identification Number. An EIN consists of a unique, 9-digit number, which the IRS issues to businesses as a form of identification for tax purposes. Your business requires an EIN for a wide range of activities and processes throughout its life.
While an EIN is primarily issued to corporations, nonprofits, LLCs, and other forms of businesses, an individual can also obtain it. You do not even need to own an LLC or other incorporated business to get an EIN. Being self-employed with a Social Security Number makes you eligible for EIN. EINs and Social Security Numbers serve the same purpose; they are used for filing taxes and applying for credit.
How to Get a Free EIN Online Instantly
The IRS issues Employer Identification Numbers (EINs) free. It is possible to obtain one instantly when you apply through the IRS website by following these steps:
- Visit the IRS EIN application page via this link.
- Complete the application process.
- The IRS will issue you an EIN instantly if you are eligible.
Using Your EIN Number
In addition to filing taxes, you need an EIN for the following processes:
- Open a business bank account.
- Obtain credit in the name of the company.
- Recruit employees and create a payroll.
- Obtain local permits and licenses.
- Use an EIN instead of Social Security Number (SSN).
- Establish a Keogh plan.
- An EIN also protects your privacy. Using your Social Security Number for business increases the risk of identity theft, tax, and liability problems.
Is It Possible to Cancel an EIN ID number?
Once the IRS issues an EIN in the name of your business, the company retains the number throughout its life cycle.
How an EIN Can Protect You from Identity Theft
A Social Security Number is a useful tool for compiling an individual's credit history because every US consumer has one. The identifying elements of an SSN include your name, variations of your name, as well as your previous and current addresses.
You can add a fraud alert if you have a credit profile. An initial security alert is valid for 12 months and prompts lenders to verify your identity because you suspect somebody might be trying to defraud you. On the other hand, a victim statement has a seven-year duration and declares you as an identity theft victim. Before attaching a victim statement, it is essential to report the identity theft at an appropriate agency like the local police department.