People often assume they will need a Social Security Number (SSN) to register an LLC with the state, but that is not necessarily true. There are identification requirements when registering a business, but an SSN is not always required.
Every state has laws pertaining to opening a business, so it’s important to check what your state requires. In most cases, however, you can register an LLC without an SSN.
The Role of a Social Security Number
The SSN was introduced in 1936 as a means of tracking income and providing retirement and disability benefits. All SSNs are issued by the Social Security Administration and have nine numbers
The role of the SSN has expanded over time, with the number becoming a primary source of personal identification. An SSN is often requested when opening a bank account, applying for credit, obtaining a credit card, and completing other transactions.
What to Use If You Don’t Have a Social Security Number
An SSN is a taxpayer identification number for an individual, while an Employer Identification Number (EIN) is a tax identification number for a business. If you don’t have an SSN because you’re not a resident of the United States or for another reason, you can apply for an EIN, which is issued by the Internal Revenue Service (IRS).
Also known as a Federal Tax Identification Number, an EIN is not required for obtaining an LLC registered with the state, but you’ll need one when opening a business bank account or for hiring and withholding taxes from employees. You’ll also be asked to supply it when filling out any application that requires you to identify your business.
You can apply for an EIN on your own or seek help from a business formation service. You’ll need to submit Form SS-4, Application for Employer Identification Number, to the IRS. The form requests information including the legal name of the business, its physical address, the type of business entity it is, and the reason you’re applying for an EIN.
The form also requests that you enter an SSN or an Individual Taxpayer Identification Number (ITIN), which is a number the IRS assigns to individuals who must report income but are not eligible for an SSN. If you need to file federal taxes and don’t have an SSN, you can apply for an ITIN using IRS Form W-7.
While it’s used primarily for tax filing purposes, an ITIN can sometimes also be used as a form of identification when opening a bank account or conducting other transactions. An ITIN is not a substitute for an EIN and not necessarily needed to obtain one. If you’re applying for an EIN and have neither an SSN nor an ITIN, you can simply write N/A on the line of the form that requests that information. You can’t apply online for an EIN if you don’t have an SSN, so you’ll have to mail or fax the form.
The Importance of a Registered Agent
Every state requires that an LLC has a registered agent, which is a person or company designated to receive important information such as legal documents and government correspondence. A registered agent must have a physical address within the state where the LLC is being formed.
Finding a qualified registered agent is especially important for a non-U.S. resident or someone else who does not have an SSN, as the person or company you hire should have the expertise necessary to handle business filings for clients using details about the business and an EIN.
Steps for Forming an LLC
Generally, the steps you’ll take to form an LLC and register with the state are the same with or without an SSN, but there are a few distinctions. Let me walk you through the process of forming an LLC.
- Choose the state in which you want to register the business – This choice will depend on your circumstances and priorities, as some states have more business-friendly laws or offer increased privacy protection or greater tax advantages than others. Remember, though, if your business will primarily operate in one state, it’s normally recommended to form the LLC there.
- Select a name and make sure it’s available – The name you choose for your business is important as it becomes the cornerstone of your brand. No two businesses registered within a state can have the same name, so you’ll have to do a search through your Secretary of State’s office to make sure the name you choose isn’t taken. Also, most states require the name of an LLC to include an LLC designation, meaning you’ll need to add some variation of “limited liability company” to your chosen name, such L.L.C. or Limited.
- Choose a registered agent – As mentioned, every LLC must have a registered agent, who can be an individual or a commercial registered agent service. I recommend hiring a commercial service if you don’t have an SSN, as they are experts in handling the duties of an agent and working with clients with varying needs.
- Create an Operating Agreement – While having an Operating Agreement is not normally required by the state, it is critical for your business as it provides a roadmap for how your LLC will be run. Even a single-member LLC, which is an LLC with just one person, should have one.
- File your Articles of Organization – Articles of Organization are the official document filed with the state to form your LLC. You’ll need to include information such as the official name of your LLC, its physical address, the name of your registered agent, the management structure the business will have, and a statement of purpose for the business.
- Obtain an EIN – As you’ve read, having an EIN is necessary for most businesses and is essential for tax purposes if you don’t have an SSN.
- Open a business bank account – This would be traditionally done by using your EIN. If the bank requests an SSN, offer your ITIN if you have one, or choose a bank that is experienced in dealing with customers using alternative forms of identification.
- Obtain necessary permits and business licenses – Depending on the type of business you have, you may need local, state, or federal licenses and permits. You’ll need to do some research to see what you need and how to keep your business in compliance with all regulations, including state and federal tax obligations.
Final Thoughts
Registering an LLC registered can be a daunting task, with or without an SSN. You’ll have to deal with paperwork and consider how you want the business to be taxed, what type of management structure you’ll employ, what vendors you’ll work with, whether you’ll have employees, and many other issues related to getting a business up and running.
If you’re feeling overwhelmed, concerned about not having an SSN, or confused about how to proceed, I highly recommend that you consult a professional or professionals who can provide sound advice and help you successfully form your LLC registered and your business underway.
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