EIN vs Tax ID (SSN, ITIN, TIN)
“Tax ID” is an umbrella term, and an EIN is just one kind. Here's how the different taxpayer identification numbers relate and which you need.
TIN is the umbrella term
A Taxpayer Identification Number (TIN) is any number the IRS uses to identify a taxpayer. It's an umbrella covering several specific types: the SSN, the EIN, and the ITIN. So “EIN vs Tax ID” is a bit of a false comparison — an EIN is a Tax ID, specifically the one for businesses.
SSN — for individuals
A Social Security Number identifies an individual person for tax and benefits purposes. Sole proprietors with no employees can sometimes use their SSN as their business tax ID, but doing so exposes the number on contracts and W-9s, which is why many switch to an EIN.
ITIN — for individuals without an SSN
An Individual Taxpayer Identification Number is issued to people who need to file US taxes but aren't eligible for an SSN, such as certain non-resident and foreign individuals. It's used for personal tax filing, not as a business EIN.
Which one does your business need?
If you operate through an LLC, corporation, partnership, or hire employees, you need an EIN. A solo sole proprietor may use an SSN but usually benefits from an EIN for privacy and banking. Individuals filing personal returns use an SSN or, if ineligible, an ITIN. When in doubt for a business, get an EIN — it's free.
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Frequently asked questions
Is an EIN the same as a Tax ID?
An EIN is a type of Tax ID — the one used for businesses. “Tax ID” (TIN) is the broader category that also includes SSNs and ITINs.
Can I use my SSN instead of an EIN?
A sole proprietor sometimes can, but an EIN keeps your SSN private and is required for LLCs, corporations, partnerships, and employers.
What's an ITIN for?
An ITIN lets individuals who can't get an SSN file US taxes. It's a personal tax ID, not a business EIN.