If you’re a non-US citizen thinking about launching a business, you might be asking if you can form an LLC (Limited Liability Company) without an SSN. Yes, in a nutshell, but it might be a little trickier than it is for US citizens. What you should know is as follows.
Individual Taxpayer Identification Numbers, or ITINs, are tax processing numbers provided by the IRS to non-US citizens who are required to file taxes but are not eligible for SSNs. Despite being usable for tax purposes, an ITIN cannot be used to establish an LLC. An EIN (Employer Identification Number), which may only be obtained by organizations with a valid tax identification number, is required to form an LLC. Should I Enter My SSN or EIN?
You might be debating whether to utilize your SSN to form your LLC or apply for an EIN if you have one. Although it is possible to register an LLC using your SSN, this is generally not advised. If your company is sued, using your SSN could put your personal assets at danger, but utilizing an EIN offers an additional degree of security. If you want to create a company bank account or plan to hire staff, you’ll also need an EIN.
No, an EIN and a Social Security number are not the same. An SSN is a nine-digit number issued by the Social Security Administration to individuals for social security benefits, whereas an EIN is a nine-digit number issued by the IRS to businesses for tax purposes. Even though both numbers are used for taxes, they have different uses.
If you are an employee of the LLC and the LLC has an EIN, you may substitute an EIN for an SSN on a W-2. Use your SSN on your W-2 if you are a sole proprietor or a single-member LLC. If you do have an EIN, you can use it to file taxes and for other business-related things.
In conclusion, it is feasible to form an LLC without an SSN, but you must first have an EIN. Despite the fact that using your SSN might appear simpler, doing so puts your personal assets at danger. An additional degree of security is provided by getting an EIN, which you’ll need if you want to recruit staff or open a company bank account. It is advised to speak with a tax expert or business attorney if you have any queries regarding forming an LLC as a non-US citizen.