I’m trying to understand the difference between Social Security Numbers and Employer Identification Numbers when they’re used as identifiers. Since both are nine-digit numbers issued by the government, what sets them apart? Can an EIN ever be used in place of a Social Security Number for personal identification, or do they serve completely different purposes? I’d like clarity because I want to make sure I’m using the right one for my business and taxes
Answer by: abdullah-al-naim
6 days ago
A Social Security Number (SSN) is a personal identifier for individuals—it’s tied to your work authorization, credit history, and personal tax filings. An Employer Identification Number (EIN), on the other hand, is strictly for business identification with the IRS. It cannot replace an SSN for personal purposes.
If you’re running a business, the EIN separates your personal identity from the company, which is important for taxes and liability. Services like Business Globalizer and Steady Formation help non-residents set up LLCs and obtain EINs without needing an SSN.
In short: SSN = personal ID; EIN = business ID. They’re both tax identifiers, but they serve very different roles.