Dear Danielle: Should I Get a Tax ID?

Dear Danielle:

I’m a sole proprietor Virtual Assistant. Should I get a tax ID number? –AK

I’m not sure how it works in other countries, but if you’re in the U.S., and especially since you are a sole proprietor, yes, you should absolutely go ahead and get an EIN (Employer Identification Number) from the IRS.

Used to be , the IRS only wanted businesses to get an EIN if they planned to have employees or operated as a corporation or partnership.

It frowned upon the practice of getting one if that wasn’t the case.

However, with identity theft so rampant, they’ve changed their position on this.

Sole proprietors can now quickly and easily get an EIN to be used as a general purpose business identification number so they don’t have to give out their Social Security number (SSN) to anyone.

One Response

  1. Anza says:

    Hi Danielle,

    I couldn’t agree more. In today’s society where identity fraud is so easy, this is a great protection personally and professionally.

    Having an EIN lends to credibility. It makes a distinction between potential “employee” to business partner. It sets you apart as being a business owner who has the ability to identify with business needs that a potential client may face. That changes the conversation and perception of what a VA can offer.

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