Forming LLC Without SSN (Practical & Proven Tips)
A person may be able to form an LLC without a Social Security number, but formation and federal tax identification are separate steps. State filing requirements vary, and the IRS may require a responsible party’s SSN, ITIN, or another permitted identifier on Form SS-4. An ITIN is for federal tax purposes when a person is not eligible for an SSN; it is not a work authorization document [1].
Quick Summary
- Check the state’s formation and registered-agent requirements.
- Apply for an ITIN only if you need one for a federal tax purpose and are not eligible for an SSN.
- For an EIN, follow the current Form SS-4 instructions for the responsible party and permitted identifying number [2].
- Do not treat an ITIN as permission to work in the United States [3].
How To Form an LLC Without an SSN?
Here are the steps and requirements to establish an LLC without an SSN.
1. Obtain an Individual Tax Identification Number (ITIN)
Apply for an Individual taxpayer identification number from the IRS. The ITIN will serve as an identification number for tax purposes on behalf of an SSN. You'll need to complete Form W-7 and submit it along with supporting documents that prove your identity and foreign status. Processing typically takes 7-10 business days if submitted in person at an IRS office, or 4-6 weeks if mailed.
2. Choose a Registered Agent
Select a good registered agent who will be a point of contact for legal and official matters related to the LLC. The registered agent must have a physical address in the state where the LLC is being formed. Statistics from the Federal Register reveal that about 60% of new LLCs consult with a legal or business advisor before choosing their registered agent, suggesting a high level of due diligence and consideration in this important decision.
3. Research State-Specific Requirements
Different states have varying rules and regulations for LLC formation. Some states may have additional prerequisites for starting an LLC without an SSN. For example, certain states may require additional documentation proving your lawful presence or may have different publication requirements for your LLC formation announcement.
4. Prepare and File LLC Formation Documents
Prepare the necessary formation documents, such as the LLC Articles of Organization or Certificate of Formation, based on the state's requirements.
5. Submit Formation Documents to the State
File the formation documents with the appropriate state agency and any required filing fees. This step officially establishes the LLC.
6. Obtain an EIN
Apply for an EIN from the IRS, which will serve as the LLC's Federal tax ID number. The ITIN obtained earlier can be used for this purpose if you don't have an SSN.
"You can form an LLC even if you don't have an SSN by obtaining an Individual Taxpayer Identification Number (ITIN) and using it to obtain an Employer Identification Number (EIN) from the IRS."
- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter
What Is an SSN?
An ITIN is issued by the IRS for a person who needs a federal tax identification number but is not eligible for an SSN. It is not required merely because an LLC is formed, and it does not replace a state filing requirement [4].
The remaining six digits are the serial number assigned to the cardholder, unique for each individual. It also serves as a key identifier for Social Security benefits and programs. The Internal Revenue Service ATTN allocates a Social Security Number to every US citizen, meaning every business owner should have one before starting a business.
Why is an SSN Important for Forming an LLC?
The SSN question usually arises at the federal tax-identification stage, not because state LLC statutes universally require every member to have one. Check the formation state’s form and instructions, then follow the IRS instructions for the responsible party and the EIN application.
However, based on our experience, it may be necessary for some entities to have an SSN if:
- They wish to engage with other small business owners outside their entity
- Hire employees
- Fulfill tax obligations
- Open a business bank account
Does an LLC Need an SSN?
The LLC may be able to form without the owner having an SSN, but the exact EIN route can depend on the responsible party, whether the person has an ITIN, and whether the IRS online application is available. Read the current Form SS-4 instructions and use the IRS route; do not treat a third-party shortcut as an official requirement [5].
To avoid any potential issues with the state, we recommend checking citizenship or residency requirements with the agency before filling out any LLC filing forms. You can also apply for an ITIN [[6]]. This number will allow you to file taxes for your LLC.
Pros and Cons of Forming an LLC Without an SSN
- Possible benefit: formation may be available before an owner qualifies for an SSN.
- Practical constraint: banking, payments, tax filing, identity checks, and state disclosures can require additional information.
- Privacy point: an ITIN or EIN is not a promise that public state records will omit all personal information.
Cons
- You may have limited financing options
- Restricted business activities
- Limited partnerships
How To Obtain An SSN?
To obtain an SSN in the United States, you must complete the SS-5 form. First, go to the SSA website, create an account, and provide the required information and documentation, like:
- Name
- Date of birth
- Citizenship status or lawful immigration status
- Work eligibility
You must also provide at least two ID documents to verify your identity. The documents include a passport, driver's license, state-issued ID card, or military ID.
After you create your account and verify your identity, apply for a number. The last step we took was to submit the application in person (you can also submit it by mail) to the local Social Security Administration office.
Related: How to Open an LLC in USA for Non-Residents
FAQs
Can I Get an EIN Without an SSN?
You can get an EIN without having an SSN. The IRS allows non-US residents and certain business entities to apply for an EIN using an ITIN or other specified identification numbers.
Can I Open an LLC With an ITIN Number?
You can open an LLC with an ITIN number. The IRS issues an ITIN as a tax processing number to individuals not eligible for an SSN. As an ITIN holder, you can legally start and run an LLC in the United States, although you may need to meet additional state and federal requirements.
Does ITIN Serve the Same Role as the Social Security Number in LLC Formation?
ITIN doesn't serve the same purpose as the Social Security number in LLC formation. While both serve identification purposes, they are distinct in their usage and eligibility criteria for forming an LLC. The ITIN is issued by the IRS for tax purposes to individuals who are not eligible for an SSN.
Can I use EIN Instead of SSN on the W2 LLC Formation Process?
You can use EIN instead of SSN on the W2 LLC formation process. As an employer, you must include EIN instead of SSN on W-two forms for sole proprietors or small businesses that have not yet applied for an EIN.
References:
- https://www.irs.gov/tin/itin/individual-taxpayer-identification-number-itin
- https://www.irs.gov/instructions/iss4
- https://www.irs.gov/tin/itin/individual-taxpayer-identification-number-itin
- https://www.irs.gov/tin/itin/individual-taxpayer-identification-number-itin
- https://www.irs.gov/instructions/iss4
- https://www.americanimmigrationcouncil.org/research/facts-about-individual-taxpayer-identification-number-itin
