Law operates on definitions. The same word can have completely different meanings in legal contexts versus common speech. If you read a statute using common meanings, you may completely misunderstand who it applies to.
"Definition" means "the meaning or limit/bounds of meaning of a word." Anything without clear boundaries is NOT a definition — it's ambiguity. Legal documents exploit this when terms are left undefined or when definitions differ from common understanding.
The Definition of "Person"
In common speech: "person" = human being.
In federal law:
"Person" includes entities that are clearly not human beings — trusts, corporations, partnerships. When a statute applies to "persons," it may be addressing entities, not just living people.
The Definition of "Individual"
You might think "individual" clearly means a human being. But trace the definition:
In the Internal Revenue Code, "person" includes "individual." But what is an "individual"?
Some research suggests that in certain contexts, "individual" means "individual proprietorship" — which is another term for "sole proprietorship." A sole proprietorship is a business entity, not a living human being.
If this interpretation is correct:
- "Person" includes "individual"
- "Individual" means "individual proprietorship"
- "Individual proprietorship" is a business entity
- Therefore: "Person" refers to entities, not living humans
This interpretation is contested. Some courts accept versions of this argument; many reject it. The point is not to assert this as proven fact, but to recognize that definitions in legal documents may not match common understanding — and you should verify rather than assume.
Case Law on "Person"
"The term 'person' does not include the sovereign... Since in common usage the term 'person' does not include the sovereign, statutes employing the phrase are ordinarily construed to exclude it." — United States v. Cooper Corp., 312 U.S. 600 (1941)
The Supreme Court acknowledged that "person" has a specific legal meaning that may differ from common usage — and specifically, that the sovereign is excluded from the term.
If you are the sovereign (in the sense of a free individual not subject to a particular statute), you might not be a "person" under that statute.
In America, who is the sovereign? "We the People" — the individuals. Under this view, living people acting in their private capacity might not be "persons" subject to certain statutory schemes. But this argument has had very mixed results in courts.
The Social Security Number Connection
One theory connects the "individual" definition to the SSN:
Looking at the SS-4 form (Application for Employer Identification Number), the Social Security Number functions as an EIN — an Employer Identification Number for the "individual proprietorship" that is YOUR NAME.
If true:
- Your SSN identifies a business entity, not you personally
- The entity is the "individual" / sole proprietorship
- You (the living person) are not the entity — you may be its operator
This theory suggests a separation between you (the living being) and the legal entity identified by the SSN. The entity can enter contracts, have obligations, and be taxed. You operate that entity but may not be identical to it.
Comparing Definitions
| Term | Common Meaning | Possible Legal Meaning |
|---|---|---|
| Person | A human being | Any legal entity — corporation, trust, partnership, etc. |
| Individual | A single human being | Individual proprietorship (business entity) |
| Citizen | A member of a country | Federal citizen vs. state citizen (different statuses) |
| Resident | Someone who lives somewhere | A foreign entity with presence in a jurisdiction |
Practical Implications
- Check definitions sections first
- Don't assume common meanings
- Ask who it's actually addressing
- Clarify your capacity
- Question the terms used
- Document your understanding
Connection to signatures: How you sign relates to who is obligated. See Signatures and Liability for how to sign in representative capacity — potentially separating your personal liability from the legal entity.
Warnings
- Courts frequently reject arguments about definitions differing from common meaning
- Judges may dismiss these theories without examination
- "I'm not a person" arguments have often failed spectacularly
- The value is in understanding, not necessarily in courtroom arguments
Use this information to read documents more carefully, ask better questions, understand what you may be agreeing to, and consider your options more fully. But don't assume that simply knowing these definitions will automatically protect you.