Do I need a separate Tax ID (EIN), or can I just use my Social Security Number?
Many sole proprietors can use an SSN, but an EIN can add privacy and professionalism.
The Narrative
The Empathy
You are filling out forms and not sure if you should share your SSN. You would rather keep personal information private but want to do things correctly.
The Education
An EIN is a free tax ID from the IRS that can be used instead of your SSN for business paperwork. Sole proprietors can often use an SSN, but an EIN is useful if you plan to hire help, open a business bank account, or want to avoid sharing your SSN with vendors or marketplaces.
The Solution
If you want added privacy or plan to grow, apply for an EIN through the IRS website. Keep both numbers handy and use the EIN on W-9s, vendor applications, and payment processor forms. It keeps your business records separate and organized.