AboutJames E. Dion Expertise Most questions about trends in specialty retail, how customers are changing both in the US and Europe. Demographics for all countries as they relate to retail trends and issues. Store Operations, Buying and Merchandising.
Experience
Past/Present clients Microsoft, Harley-Davidson, Ritz-Carlton, Hummer, Ace Hardware, Coleman Spas, Aldo, Intel, Dell, Safeway, New Balance, IBM, Kodak, Bata International, Nortel Networks, Honey Baked Ham Co., Man Alive, Highsmith
B.S Chicago State University
M.S. Chicago State University
PhD (abd) Illinois Institute of Technology
Question Dear Mr Dion, I have another question about the EIN. Why do I have to have both a tax ID number and an EIN? Can't I use the tax ID instead of my social? I want to protect myself but do I have to be an LLC to do that? I'm sorry, we really are new to this and I am quite confused. Any advice you can give or reference materials you can suggest would be greatly appreciated. Thank you for your time.
Answer Christina,
Some suppliers will accept a tax ID number (which is often issued by the state) but many require a EIN. The only way you can limit your liability is to be an LLC or Corporation. The cost of setting up either is less than $200 in most cases and you should have an accountant advising you who can do this. Do not start your business without advice from a CPA! The few dollars you spend on a professional accountant will be well worth it.
