What is the benefit of having a federal tax identification number or EIN for a small business?

Question

What is the benefit of having a federal tax identification number or EIN for a small business?

Answer 1

It's separate from your personal SSN. I use it as a way to not mix my business income with my personal income. I use an EIN and SSN for those reasons. Also I do it for security. I'd feel safer giving someone my EIN than my SSN when I do business with them. I hear that it also has it's benefits in credit ratings. Your credit history is yours not your business.  Your business could have perfect credit, while you personally might not.

Answer 2

This number ties everything together and is needed for your employee's tax deductions.

The number is also needed so 'Uncle Sam' can identify you over all other employers.

The only time you do not need one is if you are self-employed.

Answer 3

to make it easier to file business taxes, and i think you have to have it