First, let's make sure we define some terms:
EIN (Employer Identification Number): A unique nine-digit number issued by the IRS to identify a business entity for tax and reporting purposes.
ITIN (Individual Taxpayer Identification Number): A tax-processing number issued by the IRS to individuals who are required to file U.S. taxes but are not eligible for an SSN.
LLC (Limited Liability Company): A business structure that separates the owner’s personal assets from the company’s liabilities while allowing flexible taxation.
Legal entity representative (controller): An individual authorized to manage and control a business’s Stripe account, even if they do not meet the ownership threshold.
Legal entity owner: An individual who owns 25% or more of a business entity and must be identified to verify the business for payments and regulatory compliance.
SSN (Social Security Number): A nine-digit number issued to U.S. individuals for identity and tax reporting purposes.
#1 - Why do you need an SSN or ITIN if you're using an EIN for your legal entity?
U.S. financial regulations require payment processors to verify both the legal entity and at least one real person who owns or controls it. An EIN identifies the business. Whereas, the SSN or ITIN identifies the individual responsible for the account. Both are required for compliance.
#2 - Who is required to provide personal information?
Stripe requires information from:
An owner with 25% or more ownership, and/or
A designated company representative or controller
This person is responsible for managing the account and payouts.
#3 - Is this for tax reporting or a 1099?
The EIN is used for any applicable tax reporting for the LLC
The SSN/ITIN is used only for identity verification
When adding an entity with an EIN, only the EIN is used for tax reporting. Stripe does not issue tax forms using the owner’s SSN for LLC income.
#4 - Is this information shared with tenants or other users?
No, this information is not shared with other users. It is:
Stored securely
Visible only to Stripe and limited system roles
Never displayed to tenants, owners, or third parties
#5 - Is this required by law or just a Stripe rule?
This is required by U.S. financial and anti-money-laundering regulations.
Stripe is legally obligated to collect and verify this information to allow payments to be processed.
#6- What happens if I don’t provide this information?
Without verification, the payments account cannot be activated, payouts may be paused or restricted, and the account may be unable to process payments. This applies to all platforms using Stripe Connect.
#7- I’m uncomfortable providing my SSN. Are there alternatives?
If you are an individual owner, an SSN or ITIN is required.
If your business has multiple owners, another qualifying owner or authorized representative may complete verification instead.