What are the pro's and con's of using a Tax identification number as opposed to using a social security number

Answer 1

When you speak of a "Tax Identification Number" I believe you are referring to an Employer Identification Number (EIN). Those are issued for a number of reasons but the most common reason for them to be interchangeable and thus your question is in a sole proprietor business. The reason most people give their EIN rather than their SS number is to keep their SS number confidential. The EIN on an order form that could be passed around a warehouse some place is less likely to be used in identity theft.

Answer 2

An Individual Tax Identification Number (ITIN) is issued to people who are required to file US income tax returns but are not eligible to work in this country or have a social security number. There is no advantage. Illegals who are not entitled to work do not get social security credit if an employer illegally hires them.

An Employer Identification Number is for filing business tax returns only and should be irrelevant to an individual.

Answer 3

A social security number is for an individual. A tax id number is for a corporation or non-profit. If you have a corporate tax id number and you run a business, use the corporate number. There are legal advantages to a corporation. It has nothing to do with which number you use. The advantages of a corporation are: protection of the owners from corporate liabilities, separate taxes, separate accounting, etc.