SSN
A Social Security Number (SSN) is a unique nine-digit identifier issued by the US government, primarily used for tax and employment purposes. European founders setting up US LLCs often wonder if they need one, and the answer depends on your business structure and how you plan to operate.
What is an SSN?
An SSN (Social Security Number) is a nine-digit code the US government assigns to citizens and certain residents for tracking tax obligations, employment, and social security benefits. It looks like this: 123-45-6789.
The Social Security Administration (SSA) issues SSNs primarily to US citizens and lawful permanent residents (green card holders). If you're a European founder without US residency status, you cannot obtain an SSN directly.
Do You Need an SSN to Form a US LLC?
No. You do not need an SSN to create a US LLC as a non-resident foreign national. The IRS offers an alternative: the Individual Taxpayer Identification Number (ITIN).
An ITIN is a nine-digit number formatted identically to an SSN (XXX-XX-XXXX) but reserved for non-residents and undocumented individuals who have US tax obligations. You can obtain an ITIN without a visa or green card, solely for tax reporting purposes.
ITIN vs. SSN: The Key Difference for Founders
| Aspect | SSN | ITIN |
|---|---|---|
| Eligibility | US citizens and permanent residents | Non-residents with US tax obligations |
| Visa required | N/A (must be resident) | No visa required |
| Can open US bank accounts | Yes | Yes (with EIN) |
| Can obtain business credit cards | Yes | Yes (with EIN) |
| Tax filing requirement | Yes | Yes |
How ITINs Fit Into the Founders Credit Process
When Founders Credit helps a European entrepreneur establish a US LLC remotely, the typical workflow is:
- Obtain an ITIN (no visa needed; takes 2-3 weeks after Form W-7 submission)
- Form an LLC in a US state (usually Wyoming for cost and privacy)
- Apply for an EIN (Employer Identification Number) via Form SS-4
- Open a US business bank account using ITIN + EIN
- Apply for US business credit cards to build credit history
The ITIN replaces the SSN in this workflow. It satisfies tax identification requirements and allows you to open accounts and build legitimate US business credit.
Real Example
Maria, a German entrepreneur, wants to launch a digital marketing agency operating from Berlin but incorporate in the US for client credibility. She has no US visa, residency, or SSN. She applies for an ITIN using IRS Form W-7, receives it in 15 days, then forms a Wyoming LLC. With her ITIN and the LLC's EIN, she opens a Mercury business account and gets approved for a business credit card. Her US LLC is now fully operational and credit-building, all without an SSN.
Why This Matters
Many European founders mistakenly believe they must have an SSN to do business in the US. This misconception often delays their launch. In reality, the ITIN is designed precisely for your situation: a non-resident with legitimate US tax obligations.
Both SSN and ITIN serve as identifier numbers for US financial institutions and the IRS. From a bank's perspective, they function equivalently when paired with an EIN for business accounts.
Common Misconceptions
- Myth: You need a US visa to get any tax ID number. Truth: ITINs require no visa.
- Myth: ITINs only work for employment. Truth: ITINs work for self-employment, business ownership, and investment income.
- Myth: You can't open a US bank account without an SSN. Truth: ITIN + EIN works fine for business accounts.
Frequently asked questions
Q: Can I use an ITIN to open a US business bank account?
A: Yes. Pair your ITIN with your LLC's EIN, and most banks (Mercury, Wise, Relay) will onboard you remotely.
Q: How long does it take to get an ITIN?
A: Typically 2-3 weeks after submitting Form W-7 to the IRS, sometimes faster if you use an IRS-approved agent.
Q: Do I pay tax on my US LLC if I'm in Europe and have an ITIN?
A: Yes. A foreign-owned SMLLC is treated as a corporation for US tax purposes and must file Form 1120 (and informational Form 5472) annually, even at zero income.
Q: Can I switch from ITIN to SSN later if I move to the US?
A: Yes, but coordinate with the IRS to avoid duplicate filings. Consult a tax professional on the transition.
Q: Does Founders Credit help with ITIN applications?
A: Founders Credit handles the full journey: ITIN, LLC formation, E
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