Stop Using the Wrong Tax ID: 7 Simple Rules to Choose SSN, ITIN or EIN (2025 Edition)

Do I need an SSN, EIN, or ITIN? How are they different?

You've just started your dream business in the U.S., you've got a logo and your brand name; maybe even a killer product. You're ready to sell, grow, and conquer the world…

Then comes the first form that looks official.

It says:

Please enter your SSN / EIN / ITIN.

And you're like — Wait. My what now?!

Welcome to the alphabet soup of U.S. business life-SSN, EIN, ITIN-three small combinations of letters that determine how you pay your taxes, open bank accounts, and even prove your identity.

Let's decode these one by one-with no boring jargon and no legal headache. Just clear

1. What is an SSN?

• The SSN is like your U.S. identity tag-your social fingerprint.
• If you're a U.S. citizen or a permanent resident, it is a 9-digit number through which Uncle Sam-the government, that is, not your real uncle-tracks your income, taxes, and social benefits.

Think of it like this:

If the United States government were a school, then your SSN would be your roll number.

SSN You use an SSN for:

• Getting a job
• Tax filing
• Opening a bank account
• Building credit score
• Application for loans

Basically, anytime money's involved, your SSN wants in.

But here's the catch:

If you're , not a citizen of or resident in the United States, you most likely do not have an SSN-and that is perfectly okay.

That's where our next heroes come in: the ITIN and the EIN.

• ITIN is the abbreviation for Individual Taxpayer Identification Number.
• The ITIN is the friendly backup plan for folks who can't get an SSN.
• Say you are making money from U.S. sources, but you are not a U.S. citizen-perhaps as a freelancer, investor, or business owner-the IRS, otherwise known as the U.S. tax department, still wants you to pay your due share.

UpCounsel+1

So they say, "No SSN? No problem. Take an ITIN!" 

In simple terms,

ITIN = Tax ID for non-U.S. residents.

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It's a 9-digit number starting with 9, and it allows you to:

1. File U.S. taxes
2. Tax refunds
3. Open certain U.S. bank accounts

 Follow IRS regulations so you don't find yourself inadvertently committing tax crimes

What ITIN doesn't do:

You cannot use it for employment.

You cannot build credit history with it.

It does not offer any legal immigration status.

Basically, it's not your "U.S. identity," it's just your "tax identity."

So, if you are an Indian freelancer earning from U.S. clients or a foreign founder of a U.S. LLC, the ITIN is your best friend.

3. What is an Employer Identification Number?

• Now, here comes the big boss number — the EIN.
• If the SSN is for people, and the ITIN is for non-resident individuals, then the EIN is for businesses.
• EIN = Business ID number, also referred to as your company's Social Security Number.
• This is a 9-digit number provided be the IRS that identifies your business for tax purposes.
• Think of this as the birth certificate for your company. 

You need an EIN to:

1. File your LLC or corporation
2. Open a U.S. business bank account
3. Hire employees in the U.S.
4. File business taxes
5. Applying for business credit

In this case, if you have registered an LLC in the U.S. even from outside the country, you will definitely need an EIN.

And the best part?

You don't have to be in the U.S. to get it-you can apply from anywhere. 

PROMPT

Simple takeaway:

• SSN = for individuals within the U.S.
• ITIN = for people outside the U.S. (who still need to pay U.S. taxes)
• EIN = for your business, no matter where you live.

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Common Confusion:

Q: "I'm from India and starting a U.S. LLC. Do I need all three?

Nope! You need only *one* — the *EIN*.

Here's the breakdown:

• You don't need an SSN because you're not a U.S. resident
• You may need one later for an ITIN for personal tax filings to get any payments/distributions.
• But the EIN is needed for the creation and operation of your LLC.
• That's it. No triple paperwork headache.
• Calvin Coolidge: Talk about the importance of public speaking.

It is funny but true that

The first time someone mentions these three numbers, it sounds like the U.S. tax system is trolling you:

You need a number to get another number to file your taxes for another number.” 

Yet, once you know the logic behind it, it's quite simple:

SSN is your personal ID.

EIN refers to your employer identification number or unique number assigned to your business.

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ITIN: Your tax-only ID when you do not have an SSN.

That's it. You can finally stop Googling "SSN vs EIN vs ITIN" at 2 a.m.

Pro Tip:

If you're forming a U.S. LLC from India - or in fact, any other country - apply for the EIN immediately upon registration.

Without it, you can't:

• Open a bank account in the United States
• They would be able to Receive payments
• File taxes correctly
• Your LLC is basically "born", but "can't breathe" without an EIN. 

UFO Sighting Real-world Example:

Let's meet *Aditi*, a freelance designer from Mumbai.

She wants to sell her design services globally and look professional. So she forms a *U.S. LLC. 

Here's what happens: 

She does not have an SSN (she is not a U.S. citizen).  She applies for an EIN for her LLC — Done. She applies later for an ITIN when she needs to receive payments personally from her U.S. business —. Now, Aditi can: ?, accept payments globally Open a U.S. business bank account : Properly file U.S. taxes Build her international brand All because she knew what number she really needed. -

 Final Thoughts:

 Stop Overthinking — Just Get the Right Number Don't let the tax code scare you; these numbers aren't here to confuse you (okay, maybe a little), but they do keep your business legit and future-proof. So here’s your cheat sheet again: 

• SSN: U.S. citizens
• ITIN = Non-U.S. individuals for tax purposes 
• EIN = Businesses (particularly LLCs and corporations) 

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