If you want to know the difference between the SSN, ITIN, and EIN, then you are at the right place. In this comprehensive guide, I will tell you, what is the difference between the SSN ITIN and EIN
It is pretty sure If you are not a business owner, you are just familiar with SSN but, if you are an entrepreneur and running a business and handling your business taxes, then you will be fully aware of the SSN, ITIN, and EIN.
EIN vs. ITIN vs. SSN: Comprehensive Guide
What is Social Security Number (SSN)
The Social Security Number (SSN) is a means of tracking individuals for tax purposes, as well as determining eligibility for employment and benefits. To have an SSN, you must be eligible to work in the United States. This number is typically issued by the Social Security Administration (SSA) to U.S. citizens, permanent residents, temporary residents, refugees, and others who are authorized to work in the United States.
The SSN consists of nine digits (numbers), which are formatted as follows: XXX-XX-XXXX. The three-digit area at the beginning is called the Area Number. The middle two digits are known as Group Numbers or Validation Codes and they are used to verify identity and assist in processing claims at SSA offices. The last four digits are known as Serial Numbers and they identify a specific SSN.
How to Get an SSN
If you are working or planning to work, in the United States, you will need a Social Security number (SSN). This nine-digit number is used to track your earnings for the Social Security Administration (SSA). It is also used as an identifier for tax purposes and other official businesses. If you do not have an SSN, you can apply for one by completing Form SS-5: Application for a Social Security Card.
To apply for an SSN, go to your local Social Security office or call 1-800-772-1213. You must bring proof of identity, age, and U.S. citizenship or lawful alien status. The SSA will issue you a receipt with your SSN on it, which you should use until your actual card arrives in the mail. You can get an application from your local Social Security office or by calling 1-800-772-1213. Complete the application with as much information as you have available at the time of your visit. The SSA will also ask for some documents to prove who you are and that you are eligible to receive an SSN.
What is Employer Identification Number (EIN)
The Employer Identification Number (EIN) is a 9-digit number issued by the IRS to persons or entities doing business in the United States for purposes of identification. The EIN is also known as Federal Employer Identification Number or Federal Tax Identification Number.
If you need to open a bank account for your company, banks require you to provide an EIN when you apply. Even if you don’t have employees, if you plan on getting one in the future, it’s good to have an EIN ready and waiting for when you need it.
How to Get an EIN
Applying for an Employer Identification Number is super easy and free of cost process.
What is Individual Taxpayer Identification Number (ITIN)
An ITIN stands for Individual Taxpayer Identification Number, a nine-digit number that always begins with the number 9. It is used for tax purposes and was created to help people who have tax reporting or filing obligations but do not qualify for a Social Security Number.
The ITIN is issued by the Internal Revenue Service (IRS), and it is used as an identification number for tax purposes. The IRS issues ITINs to individuals who are required to have a US taxpayer identification number but who do not have and are not eligible to obtain, a Social Security Number (SSN).
How to Get an ITIN
To apply for an ITIN you must submit IRS form W-7, along with supporting documents. The IRS will then issue you an Identification Number, which will be printed on the front of your ITIN documentation package. Keep in mind that you will need an SSN if you plan on working in the US, applying for government benefits, or opening a bank account.
After reading this guide, you completely understand what is differences between the SSN, ITIN, and EIN and how to apply for each of them. Hope this guide will find helpful for you.