A 9-digit identification number issued by the U.S. government to citizens and eligible residents—primarily used for taxation, employment, and government benefits.
What is a Social Security Number (SSN)?
A Social Security Number (SSN) is a unique 9-digit number issued by the U.S. Social Security Administration (SSA) to U.S. citizens, permanent residents (green card holders), and certain eligible non-citizens. It serves as an official identification number used primarily for tax reporting, employment authorization, and accessing government benefits. For non-U.S. residents operating or owning U.S. companies, understanding the role of an SSN is important, particularly when dealing with tax filings, banking, or personal presence in the U.S.
SSNs are often required when opening personal bank accounts in the U.S., applying for credit, receiving a salary from a U.S. company, or filing an individual U.S. tax return as a resident. However, non-U.S. citizens who are not eligible for an SSN—such as foreign owners or directors of U.S. companies who don’t live or work in the U.S.—typically apply for an Individual Taxpayer Identification Number (ITIN) instead. The ITIN allows foreign individuals to comply with U.S. tax laws, even if they are not eligible for Social Security benefits or employment.
From a business perspective, many systems and platforms—including payroll providers, banking institutions, or credit bureaus—use SSNs as a way to verify identity. This can create challenges for international founders who do not have an SSN, as some financial platforms assume U.S. residency. In such cases, a well-documented business structure, use of an ITIN, and proper legal guidance can often resolve these limitations.
An SSN is confidential and sensitive information; misuse can lead to identity theft or fraud. U.S. residents are advised to share it only when absolutely necessary, and always through secure channels.
In summary, the Social Security Number is a foundational piece of U.S. identification used for employment and tax purposes. While non-U.S. founders of U.S. businesses generally don’t qualify for an SSN unless they live and work in the U.S., understanding its purpose—and the alternative identification options like the ITIN—is essential for navigating U.S. business and tax systems effectively.
