EIN vs. Tax ID
Clarify the distinction between an EIN, SSN, ITIN, and other tax identifiers. Learn which identifier you need for your specific business situation.
What is a Tax ID?
Tax ID is a broad term that refers to any identification number used for tax purposes. It can include SSN, ITIN, EIN, and other identifiers.
EIN (Employer Identification Number)
An EIN is a nine-digit number assigned by the IRS to business entities. It's used for tax filing, hiring employees, and opening business bank accounts.
Who Gets an EIN?
Corporations, partnerships, LLCs, nonprofits, and some sole proprietors get EINs.
Format
EINs are formatted as XX-XXXXXXX (12 characters including the hyphen).
SSN (Social Security Number)
An SSN is a nine-digit number assigned to U.S. citizens and permanent residents. It's primarily used for personal tax filing and employment.
Who Gets an SSN?
U.S. citizens, permanent residents, and some temporary residents receive SSNs.
Business Use
Sole proprietors without employees can use their SSN instead of an EIN for business tax purposes.
ITIN (Individual Taxpayer Identification Number)
An ITIN is a nine-digit number assigned by the IRS to non-U.S. citizens who need to file taxes.
Who Gets an ITIN?
Non-U.S. citizens, immigrants, and foreign nationals who need to file taxes get ITINs.
Business Use
Foreign entities and non-resident business owners may use an ITIN in combination with an EIN.
Quick Comparison
Here's a quick comparison of the main tax identifiers:
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