Understanding the difference between EIN and SSN is crucial for anyone living, working, or starting a business in the United States. While both are used as tax identifiers, they serve different purposes and apply to different situations. Whether you’re a U.S. citizen, immigrant, freelancer, or small business owner, knowing when and how to use each number can help you stay compliant, protect your identity, and set yourself up for financial success.
In this article, you’ll learn what an EIN and an SSN are, who needs them, how they are used, and how to apply for them. We’ll also explore common mistakes, practical tips, and scenarios where using the correct number matters most.
What Is an SSN (Social Security Number)?
The SSN — Social Security Number — is a nine-digit number issued by the Social Security Administration (SSA). It’s primarily used to track earnings and provide eligibility for Social Security benefits, but it’s also widely used for identification purposes in many aspects of life in the U.S.
Main uses of an SSN:
Filing personal income taxes
Applying for jobs and verifying work eligibility
Opening personal bank accounts
Building credit and applying for loans
Receiving government benefits
Applying for health insurance and utility services
Most U.S. citizens, green card holders, and eligible noncitizens are required to have an SSN. It’s essential for everyday life in the U.S.
What Is an EIN (Employer Identification Number)?
An EIN — also known as a Federal Tax Identification Number — is a unique nine-digit number issued by the Internal Revenue Service (IRS). It is used to identify a business entity for tax and regulatory purposes, similar to how an SSN is used for individuals.
Main uses of an EIN:
Filing business taxes
Opening a business bank account
Hiring employees and processing payroll
Issuing invoices and W-9 forms
Forming an LLC, Corporation, or Partnership
Applying for business licenses or permits
An EIN is essential for entrepreneurs, even for sole proprietors or freelancers who want to separate their business from their personal finances.
EIN vs SSN: What’s the Difference?
Though both numbers are tax-related, the difference between EIN and SSN lies in who uses them and for what purpose.
Who Needs an SSN?
You need an SSN if:
You’re a U.S. citizen or permanent resident
You’re legally authorized to work in the U.S.
You plan to apply for credit or loans
You want to receive Social Security or Medicare benefits
You need to file a personal tax return
Certain non-citizens (e.g., F1 or J1 visa holders with work authorization) may also be eligible for an SSN, especially if working legally in the U.S.
Who Needs an EIN?
You need an EIN if:
You own a business (LLC, Corp, or Partnership)
You’re a freelancer or independent contractor issuing invoices
You plan to hire employees
You need a business bank account
You’re starting a U.S. business as a nonresident
You want to apply for business credit or licenses
If you’re running any kind of business activity beyond a casual side gig, having an EIN is highly recommended.
Can You Get an EIN Without an SSN?
Yes. Foreign nationals and nonresidents without an SSN can still apply for an EIN. In fact, this is very common among international entrepreneurs who set up a U.S. LLC to sell products or services online.
You can apply by submitting IRS Form SS-4 via fax or mail, or by calling the IRS directly (for international applicants). While online applications require an SSN or ITIN, manual applications do not.
Can You Use an EIN Instead of an SSN?
No. These two numbers are not interchangeable.
If you’re applying for a job or personal credit, you’ll need an SSN.
If you’re running a business, you’ll use your EIN for business tax reporting and related tasks.
Using the wrong number in the wrong context can lead to tax errors or application denials.
How to Apply for an SSN
To apply for an SSN, follow these steps:
Check eligibility: You must be authorized to work in the U.S.
Complete Form SS-5 (Application for a Social Security Card)
Gather required documents: passport, visa, work authorization letter, I-94, etc.
Visit a local SSA office: Applications are typically in-person
Wait for processing: It usually takes 2–4 weeks to receive your SSN card
You can’t apply online if you’re a first-time applicant.
How to Apply for an EIN
There are three main ways to apply for an EIN:
Online (only for applicants with SSN or ITIN): irs.gov
By fax: Submit Form SS-4 to the IRS fax number listed on their site
By phone: International applicants can call the IRS at +1-267-941-1099 (not toll-free)
What you need:
Name of responsible party
Business name and structure
U.S. mailing address (can be a registered agent)
Type of business activity
Contact phone number
There’s no fee to apply for an EIN.
Tips for Freelancers, Immigrants, and Entrepreneurs
For immigrants without SSN:
If you’re not eligible for an SSN, apply for an ITIN (Individual Taxpayer Identification Number) to file personal taxes
You can still apply for an EIN without SSN or ITIN
Consider hiring a U.S.-based registered agent to help you form an LLC or open a bank account
For freelancers and independent contractors:
You can start as a Sole Proprietor using your SSN, but getting an EIN helps protect your identity
EIN allows you to issue invoices professionally and appear more legitimate to clients
Some platforms like Amazon or Upwork may require an EIN or W-9 for U.S.-based sellers
For small business owners:
Keep your business and personal finances separate
Use your EIN to open a business checking account
File business taxes annually using EIN and appropriate tax forms (e.g., Schedule C, Form 1120)
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Conclusion
Knowing the difference between EIN and SSN is critical for anyone living, working, or doing business in the United States. Your SSN is your personal identifier used for employment, taxes, and credit, while your EIN identifies your business and allows you to operate professionally.
If you’re an entrepreneur or freelancer — even as a nonresident — you can get an EIN and start doing business in the U.S. legally. But if you’re looking to work for someone else or access personal credit, you’ll need an SSN.