 |
Sole proprietor and tax IDQuestion Why would a sole proprietor choose to use a Federal tax identification number in the business, instead of his or her social security number.
Answer A sole proprietor should use an Employee Identification Number (EIN), or Federal ID number, as a way in which to build a business credit profile in order to qualify for credit without relying entirely on the owner's credit history and personal guarantee.
Brain Trust contributor:
Author of J.K. Lasser's Small Business Taxes 2007
© 2007, Small Business Network, Inc., All Rights Reserved.
Subject to the Terms of Use of AskJim.biz |
    AskJim ID: 1954
|
 |
|
|
Small business answers — NOW!
Ask your business question:
|
©Copyright 2008 Small Business Network, Inc.