One of the most common questions international founders ask is whether they need a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) to run a U.S. business. The short answer is no, you do not need either to legally form and operate a U.S. company. But the longer answer is more nuanced.
At Bookmate, we work with hundreds of non-U.S. founders navigating this exact issue. Here’s what you need to know.
What Is an SSN?
A Social Security Number (SSN) is a nine-digit number issued by the Social Security Administration to U.S. citizens and certain residents. It is used to track income and determine eligibility for benefits like Social Security and Medicare.
Most foreign entrepreneurs do not qualify for an SSN unless they are working in the U.S. under a visa that allows employment. If that’s not your situation, you won’t need or be able to get an SSN.
What Is an ITIN?
An Individual Taxpayer Identification Number (ITIN) is issued by the IRS to non-resident individuals who need to file U.S. taxes but aren't eligible for an SSN.
You might need an ITIN if you:
- Own rental property in the U.S.
- Receive U.S. income requiring personal tax filing
- Claim treaty benefits to reduce withholding
But again, this is about personal tax obligations, not company formation.
Can You Start a Business Without Either?
Yes. Thousands of non-resident founders form and run U.S. companies without an SSN or ITIN. You can incorporate in Delaware, Wyoming, or another business-friendly state.
What you do need is an Employer Identification Number (EIN).
What Is an EIN and Why Do You Need One?
An EIN is like a Social Security Number for your business. It’s issued by the IRS and used for:
- Filing federal tax returns
- Opening a business bank account
- Hiring employees
- Building credit
Even though the EIN application asks for an SSN or ITIN, the IRS allows foreign founders to apply without one by phone or fax. Many founders use a registered agent or service provider such as Firstbase.io, Doola, or other popular platforms to help obtain an EIN.
While Bookmate does not assist with EIN or ITIN applications, we step in once you have your EIN to ensure your business stays compliant with U.S. tax filing requirements.
What You Can Do With Just an EIN
Once your company has an EIN, you can:
- Sign contracts in your U.S. company’s name
- Invoice U.S. and international clients
- Open a business bank account with fintechs like Mercury or Wise
- Pay expenses and software through your company account
- File tax returns like Form 1120 and Form 5472
All without ever needing a personal SSN or ITIN.
When You Might Eventually Need an ITIN
You might need an ITIN down the road for:
1. Personal Tax Filing: If your business activities trigger personal tax obligations (such as paying yourself wages or electing disregarded entity status).
2. Receiving Distributions: Especially if you want to claim treaty benefits to reduce or eliminate withholding tax.
3. Investment Income: If you hold U.S. investments or real estate personally.
4. Dividends or Capital Gains: From owning shares in U.S. corporations.
But these are personal tax considerations, not operational barriers.
Common Misconceptions
Myth 1: I need an SSN to open a U.S. company. False. You can form a U.S. LLC or C-Corp as a foreigner.
Myth 2: I can’t pay taxes without an ITIN. False. Your company pays taxes with its EIN. An ITIN is only needed for personal filings.
Myth 3: U.S. banks won’t work with me. Not true anymore. Modern fintech banks like Mercury and Wise are built for global founders.
Why U.S. Compliance Still Matters
Even if you don’t need an SSN or ITIN, the IRS still expects your foreign-owned LLC to:
- File Form 5472 and a pro forma 1120 annually
- Keep clear records
Failing to file can result in penalties starting at $25,000. That’s why founders partner with Bookmate. We ensure your compliance is airtight once your EIN is in place.
What Bookmate Recommends
To successfully run a U.S. company as a non-resident:
- Choose the right structure: Most go with a single-member LLC.
- Obtain your EIN: Use a trusted service provider like Firstbase.io or Doola.
- Open a bank account: Choose fintech banks that accept international founders.
- Keep your books clean: Separate personal and business funds.
- Stay compliant: File your annual forms, even with zero revenue.
- Talk to experts: Bookmate works exclusively with international founders to file required federal returns.
We'll Be Here When You're Ready
You do not need a Social Security Number or an ITIN to start and run a U.S. business. You just need the right setup, an EIN, and a trusted partner like Bookmate to help you stay compliant.
Eventually, you might need an ITIN for personal tax reasons. But you can cross that bridge when it comes.
Until then, focus on growing your business and keeping your filings in order. The U.S. remains one of the easiest places in the world to build a company as long as you know the rules.
Need help filing your U.S. company’s federal tax returns or staying compliant? Book a free consultation with Bookmate.
Every tax situation is unique. Be sure to consult professionals who understand international founders. That’s what we do at Bookmate.
