What is an SSN?
An SSN (Social Security Number) is a 9-digit number issued to U.S. citizens and permanent residents. It is used for employment, tax filing, credit checks, and many other purposes in the U.S. Korean residents typically do not have one, but this does not prevent you from forming a U.S. business.
Many Korean founders mistakenly believe they cannot do business in the U.S. without an SSN. In reality, LLC formation, EIN acquisition, and bank account opening are all possible without one.
SSN vs ITIN: Detailed Comparison
Both SSN and ITIN are identification numbers used in the U.S. tax system, but they serve different populations and purposes.
| SSN | ITIN | |
|---|---|---|
| Full Name | Social Security Number | Individual Taxpayer Identification Number |
| Who | U.S. citizens/residents | Non-residents with tax filing obligations |
| Format | XXX-XX-XXXX | 9XX-XX-XXXX |
| Purpose | General ID, employment, credit | Tax filing only |
| Issued By | SSA (Social Security Administration) | IRS (Internal Revenue Service) |
| Needed for formation | No | No |
| Needed for EIN | No (paper filing) | No (paper filing) |
| Bank account opening | Accepted by most banks | Accepted by some banks |
When Do You Need an ITIN?
An ITIN is issued to foreign nationals who have U.S. tax filing obligations but are not eligible for an SSN. You may need an ITIN in the following situations.
- When you need to file a U.S. individual tax return (Form 1040-NR)
- When filing a tax return to claim U.S.-Korea tax treaty benefits
- When you have U.S. real estate income
- When using it as an SSN substitute for opening accounts at major banks (Chase, Bank of America, etc.)
How to Apply for an ITIN
- 1. Complete IRS Form W-7.
- 2. Submit it along with a valid federal income tax return (e.g., Form 1040-NR). The ITIN application must be filed with a tax return.
- 3. Attach identity documentation (original passport or certified copy).
- 4. Mail to the IRS, or apply through an IRS-authorized Certifying Acceptance Agent (CAA).
- 5. Processing typically takes 7-11 weeks.
What You CAN Do Without an SSN
- Form an LLC, Corporation, or Nonprofit (all states)
- Obtain an EIN: via IRS paper application
- Use Registered Agent services
- Use Virtual Office services
- Open online bank accounts (Mercury, Relay, Wise, etc. See our bank account guide for detailed comparisons)
- Use payment services like Stripe and PayPal
- Register U.S. domains and operate websites
Challenges Without an SSN
- Opening accounts at some major banks (Chase, Bank of America, etc. require SSN or ITIN)
- S-Corp election (S-Corp shareholders must be U.S. citizens or permanent residents)
- Certain license/permit applications (varies by state/locality)
- Building business credit takes longer
- Some SaaS tools require SSN for signup (alternatives exist)
How to Get an EIN Without SSN (Detailed)
Without an SSN, you cannot use the IRS online application. You must submit Form SS-4 via fax or mail. Here is the detailed process.
How to Complete Form SS-4
| Field | What to Enter | Notes |
|---|---|---|
| Line 1 | Legal name of entity (LLC name) | Must match state registration |
| Line 3 | Executor/Administrator name | Name of the 'Responsible Party' |
| Line 4a-4b | Mailing address | Virtual office address acceptable |
| Line 7a | Responsible Party's SSN/ITIN | Write 'Foreign' if no SSN |
| Line 7b | Responsible Party's foreign ID | Enter passport number |
| Line 9a | Type of entity | Select LLC |
| Line 10 | Reason for applying | Select 'Started a new business' |
| Line 18 | Foreign status | Check if applicable |
Submission and Receipt Process
- 1. First, form your LLC or Corporation. A valid entity is required for the EIN application.
- 2. Complete IRS Form SS-4 accurately. Enter your passport number on Line 7b, and the Responsible Party must sign the form.
- 3. If submitting by fax: send to IRS international fax number (855) 215-1627. Fax submissions take approximately 4-6 weeks.
- 4. If submitting by mail: send to the designated IRS address. Mail submissions take approximately 6-8 weeks.
- 5. Once the EIN is issued, the IRS will mail you a confirmation notice (CP 575 Notice).
Auteur handles this entire process for you. EIN filing without SSN costs $299. View full pricing
Can I Open a Bank Account Without an SSN?
Yes, it is possible. Online banks like Mercury, Relay, and Wise Business allow you to open a business account without an SSN. You can apply with just an EIN and passport. For detailed bank comparisons and the opening process, see our U.S. bank account guide.
Major banks (Chase, Bank of America) require an SSN or ITIN, so you will need to obtain an ITIN first to open accounts there. However, starting with an online bank and switching to a major bank later is also a good strategy.
State-Specific Considerations
You can form an LLC without an SSN in every state, but some states offer more favorable conditions for non-resident foreign nationals.
| State | Non-Resident Friendliness | Formation Without SSN | Key Notes |
|---|---|---|---|
| Wyoming | Very High | Yes | Strong privacy, no franchise tax, low annual report fee |
| Delaware | High | Yes | Well-established corporate law, LLC franchise tax $300/yr |
| New Mexico | High | Yes | No annual report, low formation cost |
| Florida | High | Yes | No individual income tax, annual report $138.75 |
| California | Moderate | Yes | Minimum $800 franchise tax even with no income, higher costs |
| Texas | High | Yes | No income tax, franchise tax exempt under $2.47M revenue |
Most Korean founders choose Wyoming due to its strong privacy protections, no franchise tax, and low maintenance costs.
Common Mistakes to Avoid
- Attempting online EIN application: Without an SSN/ITIN, you cannot apply for an EIN online through the IRS. You must use the paper (fax/mail) method.
- Incorrect Responsible Party designation: The Responsible Party on Form SS-4 must be the actual owner/manager of the LLC. Do not designate your Registered Agent as the Responsible Party.
- Applying for EIN before formation: You can only apply for an EIN after a valid entity is formed. Submit Form SS-4 after your LLC formation is complete.
- Information mismatch between documents: The company name, address, and owner name must match exactly across your LLC formation documents, EIN application, and bank account application. Even minor discrepancies can cause delays.
- Failing to file Form 5472: Foreign-owned LLCs must file Form 5472 annually. Failure to file results in a $25,000 penalty per form. See our Tax Guide for details.
- Missing state annual reports: Many states require annual report filings. Missing the deadline can result in losing your entity's 'Good Standing' status.
Example Timeline for Korean Residents
When you entrust the full process to Auteur, each step proceeds smoothly. Check out our LLC formation service and full pricing.