Giving out EIN

[Lex DeVille]

Got an email this morning from a person who contacted me through the Taxes page of my website.

This page asks for tax information including their SSN/EIN for tax reporting purposes.

The customer said he's on board but wants my EIN to verify we're a legit business.

I'm searching for info, but getting mixed answers.

Some say it's okay, others say no because of corporate identity theft.

I thought EIN was public record.

Is it okay to give this out? Is there a better way to verify an LLC as legit?

 

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[jon.a]

Got an email this morning from a person who contacted me through the Taxes page of my website.

This page asks for tax information including their SSN/EIN for tax reporting purposes.

The customer said he's on board but wants my EIN to verify we're a legit business.

I'm searching for info, but getting mixed answers.

Some say it's okay, others say no because of corporate identity theft.

I thought EIN was public record.

Is it okay to give this out? Is there a better way to verify an LLC as legit?

Why the need for verification? Just a customer? What kind of customer?
I don't ask for EIN's for the vendors we work with/buy from.

 

[Lex DeVille]

I think because the site is new and people have to give their social or EIN to get paid, they want to make sure the site is legit and not a scam to steal SSN. I don't think it will be an issue much longer as there are almost 100 users and anyone who is signed in can see them. But until enough people have used the service there isn't really anyone to confirm the legitness.

Technically he isn't a customer since the service has no up front cost.

 

[jon.a]

I think because the site is new and people have to give their social or EIN to get paid, they want to make sure the site is legit and not a scam to steal SSN. I don't think it will be an issue much longer as there are almost 100 users and anyone who is signed in can see them. But until enough people have used the service there isn't really anyone to confirm the legitness.

Technically he isn't a customer since the service has no up front cost.

I still don't understand. Back when I was an affiliate and had to provide my SSN to get paid, I never asked the business for their EIN to prove that they were legit. I didn't care, I just wanted to get paid.

If I remember correctly, sometimes I could sign up and start promoting but still would have had to provide my SSN later to get paid.

 

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[theag]

In Germany we actually have to put all that information on the website by law... If you dont, theres a whole industry of scum-sucking bottom feeder lawyers that do nothing else all day than to scan for people that have some info missing and sue them.

Weird that you dont have to in the US.

 

[mgore714]

Weird that you dont have to in the US.

In the US you can run a business without incorporating and it gets classified as a sole-proprietorship or partnership. Personally I prefer the American way - makes it easier to start up and test concepts before filing paperwork.

 

[Lex DeVille]

I still don't understand. Back when I was an affiliate and had to provide my SSN to get paid, I never asked the business for their EIN to prove that they were legit. I didn't care, I just wanted to get paid.

If I remember correctly, sometimes I could sign up and start promoting but still would have had to provide my SSN later to get paid.

I've been letting people submit files without giving SSN. I ended up giving the number to him before you replied this morning, so hopefully nothing bad comes of it. I'll probably avoid giving it out in the future just to be on the safe side. I think I found a way to verify the business through the state comptroller website without EIN. It allows searching by name for Franchise Tax Account Status.

 

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[Lex DeVille]

In Germany we actually have to put all that information on the website by law... If you dont, theres a whole industry of scum-sucking bottom feeder lawyers that do nothing else all day than to scan for people that have some info missing and sue them.

Weird that you dont have to in the US.

I would almost prefer to be this transparent just to avoid issues. Several people have questioned us, but haven't asked for EIN. I'm happy to provide proof of our legal status, but I don't want to be scammed anymore than the next guy.

 

[Blhhi]

Scammers aren't typically very original, so all you have to do is google around to see if anyone else has gotten this kinda question and suffered by giving up their info.

 

[Lex DeVille]

That was the first thing I did when the email came in. I didn't see anyone specifically saying how an individual would use this to fraud or scams, but several people mentioned not giving it out due to corporate fraud issues. Others said it was public record and that they have it on their invoices.

 

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[GlobalWealth]

Got an email this morning from a person who contacted me through the Taxes page of my website.

This page asks for tax information including their SSN/EIN for tax reporting purposes.

The customer said he's on board but wants my EIN to verify we're a legit business.

I'm searching for info, but getting mixed answers.

Some say it's okay, others say no because of corporate identity theft.

I thought EIN was public record.

Is it okay to give this out? Is there a better way to verify an LLC as legit?

They can look up in the Secretary of State records the status of your llc/corp. Very simple.

I would not provide the ssn/ein in this case. You do have an identity theft concern here.

 

[Lex DeVille]

Damn, guess I'll have to keep it in mind for next time.

Thanks for the info. I'll be sure to direct people there in the future if it ever comes up again.