EIN vs. ITIN vs. SSN: What Business Owners Need to Know

Most small business owners have an employer identification number and a Social Security number. This allows the IRS to identify and account for their business entities. Obtaining these numbers also ensures individuals remain in compliance with tax laws. However some people may have an individual taxpayer identification number instead. Which numbers you have largely comes down to your immigration status.

Social Security numbers

A Social Security number, or SSN, is a nine-digit number issued to U.S. citizens and permanent residents. Over the course of one’s lifetime, the U.S. government will use this number to track your earnings and years employed. Once you are ready to retire, this number will be used by the U.S. government to determine the amount of Social Security benefits you receive.

SSNs protect a great deal of your personal information. As such, they are also susceptible to potential identity theft. It’s important to guard this number closely, or consider getting another,…

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This article was written by NerdWallet and originally published on www.nerdwallet.com