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EIN vs SSN — What’s the difference?

When you go into business for yourself, you’ll need to decide how you file taxes: with a personal SSN or a business EIN.

Nick Simpson avatar
Written by Nick Simpson
Updated over 2 weeks ago

Most freelancers start out using their SSN (Social Security Number) when filling out tax forms or sending invoices. But once you form an LLC, you’ll want an EIN (Employer Identification Number)—and here’s why it matters:


Why use an EIN instead of your SSN?

  • Protect your identity
    Your SSN is tied to your credit, your accounts, and your entire personal life. Using it on invoices or W-9s increases your risk of identity theft. An EIN keeps your personal data private.

  • Look more professional
    Clients and platforms expect real businesses to use EINs. It’s a signal that you’re running a legitimate operation.

  • It’s required for business banking
    If you want a proper business account (which WorkMade provides), you’ll need an EIN.

  • Keeps your finances clean
    Taxes, bookkeeping, and write-offs are easier when your business has its own ID and structure.


Safer invoicing tip:

When you use WorkMade to send invoices (coming soon), we’ll always recommend using your EIN instead of your SSN. It’s safer, cleaner, and more professional.

TL;DR: Your SSN works if you’re starting out. Your EIN protects you once you’re serious.

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