Legal Question in Business Law in California

Give them your tax ID # instead. They have no 'right' to your SS#.

An EIN is not a substitute for a SSN or TIN. If you do not already have a Taxpayer Identification Number for the business, you need to get one and give them that.

Let's get the terms straight, folks. After checking several sources, I can say with confidence:

1. An Employer Identification Number (EIN or FEIN) is a kind of Taxpayer Identification Number.

2. A Social Security Number (SSN) is also a kind of Taxpayer Identification Number (TIN).

3. The reason an EIN and an SSN are both TINs is that both are used by the IRS to identify taxpayers.

4. SSNs have the format XXX-XX-XXXX. EINs have the format XX-XXXXXXX.

5. SSNs are assigned to individuals. EINs are assigned to individuals who have employees and also to entities such as corporations, partnerships and LLCs whether they have employees or not.

6. Individuals with employees may, at their option, use their SSNs rather than get an EIN.

OK, given all that, I'd say Mr. McCormick is wrong and Mr. Nelson is partly wrong. If you have an EIN, that should be sufficient, because it is your TIN for your business. I am assuming that you not only have an EIN, but also that you are using it!

Besides what the other attorneys have said, ask the company why they want your social security number. If it is so they can send you a 1099, then the appropriate number to give them is your EIN. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Attorney

Franchise Foundations APC