🔢Tax ID Numbers

This might be the most boring topic in CommerceNavigator history, but in case you need the low down on Tax ID numbers, we've got the context in plain English here.

Heads up! This guide is intended for U.S. based sellers.

Personal Tax Identification

Most U.S. sellers have their own Social Security numbers (SSN) or Individual Taxpayer Identification Numbers (ITIN) to pay taxes and receive forms such as a 1099-K. These are personal numbers that are not business related. As a sole proprietor, by default, you’ll be identified by this number.

Social Security Number (SSN)

A Social Security number (SSN) is issued by the Social Security Administration, but used for tax purposes as well. U.S. citizens, permanent residents, and some others have a SSN that is used to identify them for tax purposes. If you have a SSN and don't have an EIN, you'll typically provide this to payment processors for veririfcation and tax purposes.

Individual Taxpayer Identification Number (ITIN)

If you don't have a SSN, you'll likely need an ITIN in order to register with payment processors. ITINs are issued by the IRS to people who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain, a Social Security number (SSN).

Learn more about applying for an ITIN here.

Business Tax Identification

If you are running a registered business or have obtained an Employer Identification Number (EIN), you can provide this number to payment processors upon request instead of your SSN or ITIN, keeping your personal information safe.

Employer Identification Number (EIN)

An EIN, or employer identification number, is something you can apply for from the IRS, even if you're running a solo business and aren’t an employer. This number is simply another way to be identified as a business and can add legitimacy to your operation. Some businesses and banks may require an EIN to do business with you. Getting an EIN will generally not change your tax liability, but should be included on your Schedule C when you file taxes.

You can apply for your free EIN on the IRS website here.

Our lawyers want you to know: while we're pretty proud of our team here at CommerceNavigator, we aren't acting in an official capacity as your CPA or attorney. We provide general information for educational purposes, not specific or professional advice. Since every situation is unique, you may want to consult with the appropriate experts for accounting, legal, and business issues.