SSN or EIN for business purposes?

[Beloved]

Peace All,

For those of you who are working your own business ventures, is it better to use my SSN or to get a federal tax id (EIN)?

I am a sole proprietor using an assumed name (DBA).

Your thoughts are greatly appreciated. 

[Mr. Transcend]

Do NOT get an EIN.

That will make you a flunkie of the federal goverment. They'll be able to tax you

You'd have to file papers with them even if you haven't made any money.

[Beloved]

Thanks for the response...

[Minister8-Ball]

Before you do anything, ask yourself some questions?

1. What is your endgame?

2. How big do you want your business to grow?

3. How much liability are you exposed to as a sole proprietor?

4. I would not recommend using your SSN in business transactions because of the personal liability. Having an EIN helps to create a separate identity from your person. The rich use EIN's and interlocking corporations to keep all assets out of their name. I call it the Rockefeller Rule: Own nothing but control everything.


Whatever you do, don't give the IRS a reason to go sniffing by doing "colored folk business". Understand the rules of engagement and do what is best for your situation.

[ElleX]

Minister 8-Ball, can you suggest required reading for setting up our businesses?  I am wanting to go back into the travel agent business and want to work independent of a host agency but will need to set up business accounts at the bank (need a business license to open an account at the bank).

Any advice is welcome.

[Minister8-Ball]

I would start with Loral Langemeier's THE MILLIONAIRE MAKER. I would also look at THE ONE-MINUTE ENTREPRENEUR, THE E-MYTH REVISITED, and INNOVATION & ENTREPRENEURSHIP.

These are what come to mind...

[thegoodlife]

Word, thanks Minister 8-Ball.  I will get those books.

[ElleX]

I would start with Loral Langemeier's THE MILLIONAIRE MAKER. I would also look at THE ONE-MINUTE ENTREPRENEUR, THE E-MYTH REVISITED, and INNOVATION & ENTREPRENEURSHIP.

These are what come to mind...

Many thanks!