- Distinction between your personal and professional accounts
With EIN, you do not have to worry about banks, tax departments, or any financial institutions to mix up your personal and professional financial information. They stay separated.
- Opening a Business Bank Account
In order to get funds or finances, many businesses require a business bank account to check your worth. Meanwhile, an EIN tax ID is required to open the business bank account.
- Hiring employees in the USA
If you are wondering that EIN can be replaced with an SSN, then you are mistaken. You must fill an EIN application and get it approved if you are planning to hire employees.
- Limited Liability preserved
The separate personal and professional accounts allow you to preserve your limited liability by keeping separate entities, which is possible with the help of EIN.
- Secured SSN
The IRS issued EIN saves you from sharing SSN with lenders, business owners and others which reduces the chances of sharing SSN. Ultimately, saving you from identity theft.