Federal Tax ID's or EIN's

[Brendaleigh]

Is there a good reason to get a Federal Tax ID or an Employer Identification Number? It is really pretty easy to do, and cheap - but I was wondering if this would cause more trouble than it saves. I got the forms to apply and I know that I have to put real information on it because it is the IRS. Still, I have the mailing address as the box I rent at UPS, but there is a place on the form for you to put a separate Business address - where I put the address that I gave eBay and PAYPAL when I set up the accounts. I use my own name as the Principal Officer and my own SS#. I do not want to lie to the IRS. I haven't filed any of this yet because I really wanted to hear your thoughts. There is also the option of a State Tax ID - which I have not done. Anyway, would an EIN do me any good with eBay or PAYPAL? I have set up all my accounts as Business accounts and they have a place to put a Federal Tax number if you have it. Any thoughts???

[BooMer]

The EIN # is only for your security safeguard. It is used to replace your SS# so other people would not see your SS# when you submit application for whatever business transaction you have.

If you do a lot of business with different companies and have employees then you should get a EIN#. If you are only doing this for personal use to open few accounts then no it is not recommended or not needed.

But it is up to you in the end if you feel it is needed.