If you’re shopping for an Internet business, you’ll probably try quite a few before finding the right one. There’s lots of affiliate programs as well, and all of them ask for your social security number or EIN. It’s very important to get an employer ID number and you can get it online for free from the IRS at this link.

With identity theft on the rise, it’s a really bad idea to give your social security number to anyone. Affiliate places can be the most risky, because you really don’t know who’s going to get their hands on the information, or if it’s stored securely or not. It’s done for tax reporting purposes of course (and if they don’t ask for it, that’s a red flag because it means they aren’t reporting to the IRS).

Basically, it works like a social security number for your business. A wealth of information on it is available at the IRS web site. In a nutshell, the only businesses required are corporations, partnerships, and sole proprieters with employees. It’s still a really good idea to get one before handing your social security number out to a dozen affiliate programs.