Forums: Discussions for entrepreneurs and small business.

Hello, I have a few questions regarding tax ID numbers...

...this is like your SS#, right?  Meaning that it should be kept confidential?  Can a tax ID # be used to get a credit card?  If I have accidently given this info to the wrong person, should I be concerned about business identity theft or someone obtaining credit or a loan with my number?  How can I block credit for this number so that no credit can be issued?

Please answer soon, am I overly paranoid?  I just don`t want to get financially.

um, I mean it`s really called an EIN (Employer Identification Number) 

Hello stellar!  Please try to calm down and I`ll try to explain Taxpayer Identification Numbers (TIN).

The two most common types of Taxpayer Identification Numbers are Social Security Numbers (SSN) and Employer Identification Numbers (EIN).

SSNs should be kept as confidential as possible; obviously you will need to disclose this number to some entities such as your employer, the IRS and a bank if you were to obtain a loan or credit card.

EINs in and of themselves cannot be used to obtain credit.  These are issued to "Employers" (i.e. Businesses) and in order for businesses to obtain financing they must disclose much more information than just their EIN.

Businesses must disclose this number for various reasons such as to some customers/clients who may need to issue them a 1099.

I hope this helps to calm you down until someone else posts.



-------------------------

Gina L. Gwozdz, CPA
http://GLGcpa.com
http://TaxTreasures.com

whew! 

thanks! 

O.k. What is the difference between a EIN and a federal tax i.d. number? I got an EIN and I have suppliers that won`t sale to me because I do not have a resale number a.k.a. federal tax I.D.