A social security number is a nine-digit number assigned to every individual at birth in the United States by the Social Security Office. This number is used as a form of identification for the individual until death. An SSN is often thought to be similar to a tax ID, but the two are different. A Federal tax ID number is used to provide identification for a business while an SSN is used for individuals only.
An SSN cannot match a tax ID as the SSN will apply to an individual. A business owner who has employees, owns a corporation, is in a partnership or meets other business criteria, will need to file for a tax ID.
An SSN tracks social security and can be used by the individual to apply for a credit card or loan or arrange for insurance and medical coverage. A tax ID allows a business to be identified by the Internal Revenue Service for tax purposes. Business and personal tax info must be kept separate and this is one way of doing so.
Now, if you are in charge of a trust then a Social Security Number or a Tax ID may be required. With a living or revocable trust, an SSN is used for identification instead of a Trust tax ID Number. With an irrevocable trust, a tax ID number is required. With a revocable trust, the SSN can be used and would be considered the identification of the trust.
If you are in need of a tax ID, be it for a business or trust, IRS-EIN-Tax-ID can help. The online EIN resource offers applications for several types of entities, allowing individuals to file for EIN numbers with ease. Simply choose the entity type to get started, with customer support on offer to help with filling out and submitting applications.