Your tax ID number is a string of digits the IRS uses to distinguish your business from the millions of other small businesses in the United States.
The 3 types of tax ID numbers
Most small business owners have one or more of the following tax ID types:
Employer identification number (EIN)
Social Security number (SSN)
Individual taxpayer identification number (ITIN)
NOTE: The difference between tax ID numbers.
The numbers you have will mostly depend on immigration status.
Taxpayer Identification Number | Abbreviation | Who needs it? |
Employer identification number | EIN | Used by employers, corporations, partnerships, and multi-member LLCs. |
Social security number | SSN | Used by individuals, sole proprietors, and single-member LLCs. |
Individual Taxpayer Identification Number | ITIN | Used by nonresident and resident aliens, their spouses, and dependents who cannot get an SSN. |