Taxpayer Identification Numbers
Generally, use your SSN as your taxpayer identification number. You must put this number on your individual income tax forms. An EIN is valid for credit applications. However, check if the creditor or lender accepts EINs. Using an EIN can impact your credit history and score.
Lenders know the difference between SSNs and EINs. Establish dedicated credit accounts under the business name. An EIN allows separating business and personal finances. Keep your EIN secure since EINs are public record.
You may apply for an EIN online if your business is in the US. The applicant must have a valid Taxpayer Identification Number. You are limited to one EIN per day. If ineligible for an SSN, the government issues an ITIN which can substitute.
Unless a disregarded entity, you must use an EIN when filing taxes separate from personal forms. EINs uniquely identify most business types. You need an EIN when you have an employee or certain retirement plans. Get a new EIN when changing business type or ownership.
Sole proprietors usually use SSNs instead of EINs. However, a separate business bank account is recommended. Some banks allow opening accounts without SSNs, using ITINs instead.
Applying for Credit using EIN or SSN
Can I use my EIN instead of SSN when applying for credit? An EIN is valid for credit applications, but check with the creditor or lender if they accept EINs. Using an EIN can impact your credit history and score.
Create a distinct identity for your business. Establish dedicated credit accounts under the business name.
Learn how to leverage your EIN to establish credit and improve finances. An EIN allows separating business and personal finances. However, EINs are public record, so keep your EIN secure.
EIN and SSN for LLCs
Does EIN require SSN? An LLC doesn’t require an SSN for its formation. There are exceptions and alternatives to using an SSN for LLCs. An LLC is treated as a pass-through entity for tax purposes by the IRS.
For federal income tax purposes, a single-member LLC classified as a disregarded entity generally must use the owner’s social security number or employer identification number for all information returns and reporting related to income tax.
Non-U.S. citizens who own businesses can still get a business EIN even if they do not have an SSN. Non-U.S. citizens typically cannot get a U.S. SSN, but there is another option called the Individual Taxpayer Identification Number, or ITIN.
You don’t need an SSN to get an EIN. You only need an SSN if you want to apply for an EIN online. You can get an EIN without an SSN by sending Form SS-4 to the IRS by mail or fax.
EIN is the number business entities must acquire for financial and tax purposes. Moreover, it can be issued by the IRS in many ways. The taxpayer needs to have a valid identification number. This identification number doesn’t need to be the SSN; it can be the ITIN or ATIN.
You can obtain an EIN by calling the IRS’s Tax Line or by mail using Form SS-4.
EIN is used by the IRS to easily identify businesses for tax matters. Applying for EIN requires forms that require your SSN to show eligibility. But you do not possess an SSN but require an EIN to start a business in the U.S.
For legalizing an LLC in the U.S., you must apply for the EIN the IRS will use to track income taxes and receive taxes you have to pay.
IRS EIN Tax ID Filing Service can make applying for an EIN, with or without a SSN, simple. If you need help, it offers helpful online support anytime.
A Federal EIN is a tax ID assigned to business entities by the IRS. This links tax activity to your business. U.S. businesses can apply for an EIN through the IRS website for free, if they meet requirements.
While an EIN is primarily issued to corporations and LLCs, an individual can also obtain it. You do not need an LLC or incorporated business to get an EIN. Being self-employed with an SSN makes you eligible. EINs and SSNs serve the tax and credit purposes.
A taxpayer ID like the EIN is issued for life and does not require renewal. You don’t require a new ID if your name or location changes. However, major changes like structure or ownership require a new EIN.
An EIN application is free and done in multiple ways: online, mail, fax, or phone.