Is my tax id number my social security

Individuals receiving most types of payments will need either an SSN (Social Security Number) or an ITIN (Individual Taxpayer Identification Number).  An international person who wishes to claim exemption from tax withholding under a tax treaty must have a SSN or ITIN. 

Social Security Number (SSN) : a nine-digit number assigned to an individual by the Social Security Administration (SSA).  The number is assigned for tax and wage purposes. Under US federal law, any person working in the USA for compensation (wages, salary, etc) must have an SSN.  This includes international employees. 

Individual Taxpayer Identification Number (ITIN):  a nine-digit number assigned to an individual who is not eligible for an SSN but is required to have a ITIN for some US payment or tax reporting purpose. Note that the ITIN is not an SSN and cannot be used for employment purposes. The ITIN is easily distinguished from the SSN because the ITIN always begins with a "9" and the fourth digit is always a "7" or "8". 

Applying for an ITIN:   

To apply for an ITIN submit Form W-7 (Application for IRS Individual Taxpayer Number) to the IRS.  The form and instructions may be obtained from the IRS website .

Applying for an SSN :

Visit the Social Security Administration's SSN Application  webpage.

The Social Security Administration (SSA) recommends that international persons wait until they have been in the USA for 10 calendar days before applying for an SSN.  Waiting ten days, ensures that all immigration information has been properly recorded in the SSA database and allows for timely processing of the SSN. 

A Social Security Number (SSN) is an acceptable Tax ID for a Sole Proprietorship; however, there are instances when obtaining an Employer Identification Number (EIN), is required or recommended, particularly if the business owner wishes to engage in certain types of business activities. 

For example, a Sole Proprietor will need to apply for an EIN if he/she wishes to hire employees and establish a payroll. Moreover, if the individual wishes to open accounts in the company’s name or acquire credit, banks and lending agencies will request this kind of Tax ID as well.

In some cases, an SSN can be enough to form and operate a Sole Proprietorship, but there are many reasons to apply for an EIN and having it available should you need to do any of the aforementioned tasks. 

The other advantage of using an EIN in lieu of an SSN is privacy. When clients are asked to pay an invoice, they will need information from you — including an SSN — to make payments. Sending sensitive information like your SSN to clients may increase your chances of identity theft.

An EIN allows your business to operate under a Tax ID number that is separate from your personal SSN and can help protect your online privacy and personal identity from criminals.

Sole Proprietor EIN application

Sole Proprietors can certainly be formed and function without EINs, but it’s likely that you’ll need to apply for an EIN at some point. Obtaining an EIN for your Sole Proprietorship has never been easier. GovDocFiling allows you the freedom to simply enter your information online, and our EIN/Tax ID specialists take care of filing all appropriate paperwork with the IRS. We help you avoid common mistakes to get things done right the first time. Online applications are usually processed within 24 hours, and you can check the status of your order at any time.

A social security number (SSN) is a tax code used by an individual, while a tax ID is a nine-digit tax code for a business entity. For a business entity, a tax ID is usually called an EIN. Just like an individual uses their social security number to uniquely identify themselves on their tax paperwork, a business entity uses it in the same way. It is a unique way for a business to be identified by the IRS on their tax forms.

To file taxes as a business instead of an individual, a tax ID is required. A tax ID number is necessary for tax forms and when business owners open a business account through a bank. Sometimes, suppliers and customers also need it to create an account with the business.

Small business owner are sometimes unsure if they need a tax ID number. Almost all businesses need a tax ID number. Also, if a small business is associated with certain organizations, it may be required to apply for a tax ID. Here are some examples of those associated organizations:

• Non-profits
• Farmers’ cooperatives
• Certain types of trusts

However, not every business entity needs a tax ID number. An exception is a sole proprietor with no employees and no plans to hire employees. In this case, the sole proprietor can use their own personal social security number as a tax identification number because the person and the business are the same. Sole proprietors who do plan on hiring employees or have already hired employees are required to have a tax ID number, however.

If you own a business, chances are you will need a tax ID in order to file taxes as a business as opposed to an individual. There are some exceptions, like some sole proprietors, but most fall under the category that requires a unique business identification code. You can easily get your tax ID through GovDocFiling.