EIN vs SSN Numbers

EIN (Employer Identification Number) and SSN (Social Security Number) are both unique identification numbers used in the United States, but they serve different purposes and apply to different entities.

SSN (Social Security Number):

  • It’s a ninedigit number issued to U.S. citizens, permanent residents, and temporary (working) residents.
  • The primary purpose of an SSN is to track individuals for Social Security purposes, but it has also become a de facto identification number for taxation and other purposes.
  • SSNs are typically used by individuals in their personal capacity.

EIN (Employer Identification Number):

  • It’s also a ninedigit number, but it is issued by the IRS to businesses for tax reporting purposes.
  • EINs are used by employers, sole proprietors, corporations, partnerships, nonprofit organizations, trusts, estates of decedents, government agencies, certain individuals, and other business entities.
  • Businesses use EINs to identify their tax accounts.

The key difference is that an SSN is assigned to individuals, while an EIN is assigned to businesses.


As for credit ratings:

SSN and Individual Credit Ratings:

  • Credit bureaus use SSNs to track individuals’ credit histories.
  • Each individual has a personal credit score associated with their SSN, which reflects their borrowing and repayment history.
  • This score is a critical factor that lenders consider when deciding whether to extend credit to an individual and at what interest rate.

EIN and Business Credit Ratings:

  • Similar to individuals, businesses can also have credit scores.
  • Business credit scores are often linked to an EIN and reflect the creditworthiness of the business rather than the individual.
  • These scores are determined by factors such as the business’s repayment history, the length of its credit history, its credit utilization, and its public records (like bankruptcies or tax liens).
  • Business credit ratings can influence a company’s ability to secure loans, the interest rates it gets, and the terms of its trade credit with suppliers.

So, in summary, an EIN and an SSN are not the same. They are used for different purposes, associated with different entities (individuals versus businesses), and can each have their associated credit ratings.