When planning to do business or work in the United States, foreign nationals are faced with the need to obtain tax and social security identification numbers. These numbers - SSN, EIN and ITIN - play an important role in tax reporting, opening bank accounts and employment. In this article, we will explain the differences between SSN, EIN and ITIN, who needs them and how to obtain them.
Why do I need identification numbers in the U.S.?
Taxpayer Identification Numbers (TINs) are used to record taxes, start a business, and receive social benefits in the United States. They help government agencies track the income of individuals and businesses to ensure correct tax reporting. Depending on your status and purpose, you may need one of three types of numbers:
- SSN – for individuals, especially salaried employees.
- EIN – are for employers and legal entities.
- ITIN — для лиц, не имеющих права на получение SSN, но обязанных подавать налоговые декларации.
What is an SSN (Social Security Number)?
SSN (Social Security Number) is a Social Security number that is required for anyone working in the United States. The number consists of nine digits in the format XXX-XX-XXXX and is used to track earnings, collect Social Security benefits, and pay taxes.
Who needs an SSN?
SSN is required for all U.S. citizens, residents, and those with work authorization. This number is also required when opening bank accounts, renting a home, and obtaining credit.
How do I get an SSN?
- Fill out Form SS-5 ("Application for A Social Security Number Card").
- Provide passport and immigration documents to prove identity and status in the United States.
- Receive your SSN card in the mail within 2-4 weeks after submitting your application.
What is an EIN (Employer Identification Number)?
EIN (Employer Identification Number) is an employer identification number used by companies for filing tax reports and paying wages. EIN consists of nine digits in the format XX-XXXXXXXXXXX and is analogous to SSN for legal entities.
Who needs an EIN?
An EIN is needed for virtually all businesses, including LLCs, corporations, and trusts. An EIN is required for:
- Payroll payments to employees.
- Filing tax returns on behalf of the company.
- Opening a bank account for a business.
How to get an EIN?
To get an EIN, you need to file an application with the IRS. This can be done by:
- Online is the fastest way, allowing you to get a number within minutes.
- By mail - takes up to four weeks to process.
- By fax or telephone - available to applicants from overseas.
What is an ITIN (Individual Taxpayer Identification Number)?
An ITIN (Individual Taxpayer Identification Number) is an individual taxpayer identification number designed for individuals who cannot obtain an SSN but are required to file U.S. tax returns.
Who needs an ITIN?
ITINs are needed for non-residents of the United States, foreign nationals, and their dependents and spouses who are required to file tax returns but are not eligible for an SSN.
How to get an ITIN?
To apply for an ITIN, you must complete Form W-7 and submit it to the IRS. You must also attach copies of documents proving the alien's identity and status. Depending on the method of submission, the process can take from 7 to 14 weeks.
What is the difference between an SSN, EIN, and ITIN?
Each number is for a different category of taxpayers:
- SSN - for individuals planning to work in the United States.
- EINs are for companies and entrepreneurs hiring employees or running a business.
- ITIN — для иностранцев, которым нужно подавать налоговые декларации, но которые не имеют права на SSN.
| Feature | SSN | EIN | ITIN |
|---|---|---|---|
| Who needs it | Individuals | Legal entities, employers | Aliens not eligible for an SSN |
| Format | XXX-XX-XXXX | XX-XXXXXXX | 9XX-XX-XXXX |
| Who gives out | Social Security Agency | Internal Revenue Service (IRS) | Internal Revenue Service (IRS) |
| Main purpose | Employment, social benefits | Business taxation | Filing a tax return |
Conclusion
The process of obtaining an SSN, EIN and ITIN can be complicated, especially for foreigners. Our TaxFreeCorp team will help you complete the paperwork, speed up the filing process and ensure that the forms are filled out accurately. With our help, you can get all the numbers you need without hassle and in the shortest possible time.