The ITIN and the EIN look alike, are both nine digits long, both come from the IRS and both get mentioned in the same breath by banks, accountants and marketplaces. That is why so many non-US business owners apply for the wrong one. This guide cuts through the confusion with a simple rule you can apply in under a minute and shows what to do in the most common situations.
This is general information, not tax or legal advice. Rules change, so check current IRS guidance or ask a professional for your exact facts.
The one-sentence answer
An EIN identifies a business. An ITIN identifies a person who has a US tax filing requirement but cannot get a Social Security number. If you are asking what number your company needs, the answer is almost always an EIN.
What is an EIN?
An Employer Identification Number is a nine-digit number, written XX-XXXXXXX, that the IRS gives to businesses and other entities. It is the company's tax ID. You use it to open a US business bank account, file business tax forms, register with payment platforms and marketplaces, hire employees and prove the company exists to partners and suppliers. Our guide on getting an EIN without an SSN covers the application in detail.
What is an ITIN?
An Individual Taxpayer Identification Number is a nine-digit number that starts with 9. It is issued to an individual who must file a US return or be named on one but is not eligible for an SSN. It is a personal tax number and it does not identify a company. Read the full explanation in ITIN number: what it is and how to get one.
ITIN vs EIN side by side
| EIN | ITIN | |
|---|---|---|
| Identifies | A business or entity | An individual |
| Format | XX-XXXXXXX | 9XX-XX-XXXX |
| Form used to apply | Form SS-4 | Form W-7 |
| Needs a tax return attached | No | Usually yes, or a valid exception |
| Needs an SSN or ITIN to apply | No for foreign applicants who apply by fax, mail or phone | It is the number for people without an SSN |
| Typical timeline | Days to a few weeks depending on method | Several weeks |
| Used for | Company banking, company tax filings, payment platforms, marketplaces | Personal US tax return, some treaty claims |
| Expires | No | Yes, if unused for three consecutive years |
Which one do you need? Common situations
You own a US LLC and live abroad
You need an EIN for the LLC. A single-member LLC owned by a foreign person is generally treated as a disregarded entity for income tax, but it still needs its own EIN and it has annual reporting duties, described below. You do not need an ITIN just because you own the LLC. See US LLC formation to set it up.
You sell on Amazon, eBay, Etsy or through Stripe from abroad
Marketplaces and payment platforms usually ask for company details and tax forms such as the W-8BEN or W-8BEN-E for foreign persons or the W-9 for US entities. A US company with an EIN opens more doors, such as a US bank account. An ITIN is generally not what they need. Our guides on selling on Amazon from outside the US and opening payment accounts as a non-US resident go further.
You are a freelancer paid by US clients
US clients often ask for a W-8BEN, which a foreign individual can usually complete using a foreign tax ID. If your country has a tax treaty with the United States, you may claim reduced withholding on the form. An ITIN is not automatically required for that. Whether you need one depends on your tax treaty position and the payer's requirements.
You must file a personal US tax return
If you personally have a filing requirement, for example from US rental income or other income that is not fully taxed at source, you will need an ITIN to file if you have no SSN. This is the main case where an ITIN is the right choice.
You are a spouse or dependent on a US return
The person who is listed on the return without an SSN needs an ITIN so the return can be processed.
Do you ever need both?
Yes, sometimes. A foreign founder might have an EIN for a US company and also need an ITIN to file a personal return, claim a treaty benefit or complete certain forms. They are independent numbers and having one does not replace the other. Do not apply for both by default; apply for the one that solves your actual requirement.
What a foreign-owned LLC must file
A single-member US LLC with a foreign owner is typically required to file Form 5472 together with a pro forma Form 1120 each year to report certain transactions between the company and its owner. Penalties for missing the filing can be severe, so this deadline matters even when the company has no US tax to pay. Our IRS and state filing service can prepare these forms for you. Whether you also owe US income tax depends on your facts, including whether the company earns income connected to a US trade or business.
How to apply for each number
EIN
File Form SS-4. A foreign applicant without an SSN or ITIN generally cannot use the online application and instead applies by fax, by mail or by phone. Enter "foreign" in the line for an SSN or ITIN. Name the company exactly as formed, identify the responsible party and describe the business accurately. Our EIN service handles this for you.
ITIN
File Form W-7 with identity documents and, in most cases, a signed federal tax return or a qualifying exception. Use a Certified Acceptance Agent if you do not want to mail your passport. Our ITIN service works with one.
Common mistakes
- Applying for an ITIN when the company only needs an EIN, which costs weeks.
- Using a personal ITIN on a company form, or an EIN on a personal form.
- Putting the wrong responsible party on the SS-4.
- Assuming a bank requires an ITIN when it actually needs the EIN and your passport.
- Forgetting the annual Form 5472 for a foreign-owned LLC.
- Letting an ITIN expire because it was unused for three years.
Conclusion
Use the rule: company equals EIN, person with a personal US filing requirement equals ITIN. Most non-resident LLC owners need only the EIN. If you are not sure, contact our team with a short description of your business and where you live and we will tell you which number to apply for.
