A detailed guide explaining the differences between EIN, ITIN, and SSN in the United States, including their uses, eligibility requirements, and application processes, to help you avoid mistakes and stay compliant.
Introduction
In the United States, both individuals and businesses often need an identification number for tax filing, opening bank accounts, or conducting legal business activities. However, many people confuse EIN (Employer Identification Number), ITIN (Individual Taxpayer Identification Number), and SSN (Social Security Number).
This article breaks down each type, their purposes, eligibility, and how they differ.
1. EIN (Employer Identification Number)
- Issuing Agency: Internal Revenue Service (IRS)
- Purpose: Primarily for business tax filing, opening business bank accounts, hiring employees, and other business-related activities.
- Who Needs It:
- US-registered companies (LLC, Corporation, etc.)
- Foreign companies doing business in the US
- Sole proprietors with employees
- Eligibility: Available to both US residents and non-residents; SSN is not required.
- Key Point: Serves as the “tax ID” for a business.
2. ITIN (Individual Taxpayer Identification Number)
- Issuing Agency: Internal Revenue Service (IRS)
- Purpose: For tax filing only; cannot be used for work or to receive Social Security benefits.
- Who Needs It:
- Individuals who are not eligible for an SSN but must file US taxes
- Foreign investors, property owners, partners in US partnerships, etc.
- Eligibility: Must submit a tax return or meet an IRS exception.
- Key Point: Begins with the number 9, formatted like an SSN (9XX-XX-XXXX).
3. SSN (Social Security Number)
- Issuing Agency: Social Security Administration (SSA)
- Purpose:
- Required for legal employment in the US
- Access to Social Security benefits
- Opening bank accounts, applying for credit
- Who Needs It:
- US citizens
- Lawful permanent residents (green card holders)
- Non-immigrants with work authorization
- Eligibility: Must have a valid work or residency status.
- Key Point: The most commonly used personal ID number in the US.
Comparison Table
| Item | EIN (Employer ID) | ITIN (Taxpayer ID) | SSN (Social Security) |
|---|---|---|---|
| Intended for | Businesses, employers, sole proprietors | Taxpayers without SSN | US citizens, green card holders, work-authorized non-immigrants |
| Issuing agency | IRS | IRS | SSA |
| Main purpose | Tax filing, hiring, business banking | Tax filing only | Work, tax, benefits, banking |
| Eligibility | Businesses and some individuals | No SSN eligibility, must file taxes | Must have valid work/residency |
| Work permission | No | No | Yes |
Conclusion
- EIN: Business tax ID
- ITIN: Tax ID for individuals without SSN eligibility
- SSN: Core ID number for those authorized to work in the US
Knowing the differences can help you choose the right ID, ensure compliance, and avoid application errors.