Ask the Accountant…
Question: I am just starting a distributorship and am setting up an LLC. Why do I have to use my Social Security Number?
Answer: Actually, you don’t have to use your Social Security number to identify your LLC. You can apply for an EIN (Employer Identification Number) through the IRS, and I recommend that you do that. You will have to provide your Social Security Number to get an EIN, but when needed, you can provide your EIN instead of your Social Security Number.
I recommend the EIN so to protect your identity. At year end when your clients request a W9, I think it is safer for this document to include your EIN rather than your SSN.
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