I’m a bit confused about how tax IDs work in the U.S. Is my Social Security Number automatically treated as my Employer Identification Number by the IRS, or are they completely separate? Since both are used for taxes, I’d like to know if I can just use my SSN for my business, or if I really need to apply for a separate EIN when running a company.
Answer by: abdullah-al-naim
5 days ago
No—your Social Security Number (SSN) is not the same as an EIN. An SSN is for individuals, while an EIN (Employer Identification Number) is issued by the IRS specifically for businesses. Sole proprietors can sometimes use their SSN for taxes, but getting an EIN is strongly recommended for separating personal and business finances, opening bank accounts, and hiring employees.
To simplify the process, services like 3 and Expedite Formation help entrepreneurs (including non-residents) obtain EINs quickly and correctly.
In short: SSN = personal ID, EIN = business ID. They serve different purposes, and serious businesses should have an EIN.
