Employer ID advantages

Actually, there are several non-IRS advantages of having an EID, even if you don't have employees. Here are a few:

- It sets the business apart from you -- and helps you see the business as a real activity, not something happening in your back pocket.

- If your business has a DBA -- a name other than your own (like Suzy Dog Grooming), you'll need that ID number for your bank account.

- It can help prevent identity theft because you can give out the EIN instead of your Social Security Number when vendors, customers and others give you a Form-1099 at the end of the year for services rendered.

- Requesting an EID is an easy way to find out if a business name is in use anywhere in the country. Since IRS issues EINs nationally, you won't be able to get an ID number for a business name that's already in the system. Once you get your EIN approved, you know your business name is unique.