ITIN vs EIN: The Difference That Actually Matters
ITIN vs EIN: an EIN identifies a business to the IRS — your LLC needs one to open a bank account. An ITIN identifies a person who must file US taxes but cannot get an SSN. Most non-resident founders need only the EIN.
The ITIN vs EIN confusion costs people weeks. Both are nine-digit numbers issued by the IRS, both are called tax IDs, and both come up the moment you start forming a US company from abroad. They do completely different jobs, and applying for the wrong one delays everything downstream.
Here is the distinction in plain terms, and how to tell which applies to you.
Table of contents
ITIN vs EIN: what an EIN is
An EIN — Employer Identification Number — identifies a business entity to the IRS. Think of it as a Social Security Number for your company rather than for you.
In the ITIN vs EIN pairing, this is the one that does the commercial work. Your LLC uses it to open a US business bank account, accept payments, file returns, and hire if you ever do. Without it, the entity exists on paper but cannot function commercially.
The good news in the ITIN vs EIN question for foreigners: you can obtain an EIN without an SSN. You are not required to be a US resident, hold a visa, or have any personal US tax identification. The company qualifies on its own.
The catch is procedural. The IRS online application requires the responsible party to have an SSN or ITIN. Without one, that route closes and you file Form SS-4 by fax or mail instead.
ITIN vs EIN: what an ITIN is
An ITIN — Individual Taxpayer Identification Number — identifies a person, not a business. It exists for individuals who have a US tax filing requirement but are not eligible for a Social Security Number.
The key word is requirement. An ITIN is issued to let you meet an obligation you already have. It is not a general-purpose identifier you obtain because it might be useful.
This is where the ITIN vs EIN distinction matters most: owning a US LLC does not automatically create a personal US filing obligation. Whether you have one depends on how your entity is taxed, whether you have US-sourced income, and your treaty position — questions for a cross-border accountant, not a website.
ITIN vs EIN side by side
| EIN | ITIN | |
|---|---|---|
| Identifies | A business entity | An individual person |
| Who it is for | Your LLC or corporation | You, personally |
| Needed to open a business bank account | Yes | No |
| Requires an SSN to obtain | No | No |
| Application form | Form SS-4 | Form W-7 |
| Filed alongside | Nothing else required | Usually a tax return |
| Expires | Never | Yes, if unused for three years |
| Most non-resident founders need it | Yes | Only in specific cases |
Which one do you actually need?
For the typical non-resident founder — a freelancer, e-commerce seller, or SaaS owner setting up a US LLC to use Stripe and look credible to American clients — the ITIN vs EIN answer is almost always the same: get the EIN, skip the ITIN unless an accountant tells you otherwise.
Here is how it breaks down by situation:
- You are forming an LLC → EIN, every time. No exceptions.
- You need a US business bank account → EIN is sufficient. Providers verify the entity, not you personally.
- You are setting up Stripe or a payment processor → EIN.
- You personally owe a US tax filing → this is where an ITIN enters the picture.
- You receive US-sourced income personally, outside the LLC → likely an ITIN, confirmed by an accountant.
The pattern is consistent: the EIN serves the company, the ITIN serves the individual. Most people forming a US entity from abroad are doing everything through the company.
Getting your EIN without an SSN
The fax method, Form SS-4, and the real timelines we experienced.
Where TIN and SSN fit in
A third acronym muddies the ITIN vs EIN comparison, and clearing it up resolves most of the confusion.
TIN — Taxpayer Identification Number — is the umbrella term. It is not a specific number you apply for. Every identifier the IRS uses for tax purposes is a TIN:
- SSN — for US citizens and eligible residents
- ITIN — for individuals ineligible for an SSN
- EIN — for business entities
So an EIN is a TIN, but not every TIN is an EIN. When a form asks for your TIN, it wants whichever of these applies — for your LLC, that is the EIN.
ITIN vs EIN: how to get each one
Getting an EIN as a non-resident
This is the simpler half of the ITIN vs EIN process. File Form SS-4 with the IRS. Since the online application requires an SSN or ITIN, foreigners use the fax route instead. The IRS charges nothing for an EIN — any fee you pay goes to a service handling the filing on your behalf.
In our own case the EIN arrived in roughly two weeks. Processing times vary with IRS workload, and published estimates range considerably wider.
Getting an ITIN
File Form W-7, normally attached to a US tax return that establishes why you need one. You will also need to prove your identity and foreign status, usually with a certified passport copy — either through an IRS-authorised Certifying Acceptance Agent or by mailing original documents.
The full requirements are published by the Internal Revenue Service, and they change periodically. Check the current guidance before starting.
Frequently asked questions
ITIN vs EIN: what is the main difference?
An EIN identifies a business entity to the IRS; an ITIN identifies an individual person who must file US taxes but cannot obtain a Social Security Number. Your LLC needs an EIN. You personally need an ITIN only if you have a US filing obligation.
Is a TIN the same as an EIN?
TIN is the umbrella term for all IRS taxpayer identification numbers. An EIN is one type of TIN, used for businesses. SSNs and ITINs are TINs for individuals. So every EIN is a TIN, but not every TIN is an EIN.
Do I need an ITIN to get an EIN?
No. This is the most common misconception in the ITIN vs EIN question. You can obtain an EIN for your LLC without an SSN or an ITIN by filing Form SS-4 by fax or mail.
Can I open a US bank account with just an EIN?
Yes. Business banking is tied to the company’s EIN, not to a personal ITIN. You will typically provide your formation documents, the EIN confirmation letter, and a passport.
Does an EIN expire?
No. Once issued to your entity, an EIN is permanent and requires no renewal. An ITIN, by contrast, becomes inactive if unused on a federal return for three consecutive years.
ITIN vs EIN: can I have both?
Yes, and some non-resident owners do. They serve different purposes and are not mutually exclusive — one identifies your company, the other identifies you.
