Why are Social Security Numbers and Tax IDs required?
As a transfer agent, it is our duty to maintain accurate ownership records with respect to all issued securities. SEC requires that transfer agents maintain accurate records, process security holder transfer requests in a timely manner and act in ways to protect the interests of security holders and investors.
Carta also provides companies and security holders with tax forms such as form 3921s and 83(b) election forms that require SSN information. To ensure that the tax forms are filed with the Internal Revenue Service Center in a timely manner, it is important that security holders enter accurate information on Carta.
Our database is encrypted, accessible via internal connections only and SSL protected, and the SSN field is encrypted within the database with a separate encryption key. We also use HackerOne, although our program is currently private. A more detailed information on our security processes and security systems is available here.