EIN vs. ITIN: What Non-Residents Need for a US LLC

If you’re a non-resident planning to set up a US LLC, you’ll need two key tax IDs from the IRS: an EIN (Employer Identification Number) for your business and, in some cases, an ITIN (Individual Taxpayer Identification Number) for personal tax purposes. These numbers are not interchangeable and serve distinct purposes.

• EIN: Identifies your LLC for tasks like opening a business bank account, filing tax forms, and managing business operations. It’s mandatory for every LLC.
• ITIN: Identifies you personally for US tax obligations, such as filing individual tax returns (Form 1040-NR) or claiming tax treaty benefits (via Form W-8BEN). Required only if you have personal US tax obligations.

Key Takeaways:

1. Apply for your EIN first – it’s essential for starting your LLC operations.
2. Only apply for an ITIN if you need to file personal tax forms or claim treaty benefits.
3. Non-residents can’t use the IRS online EIN system but can apply via phone, fax, or mail.

Quick Comparison:

Start with your EIN to get your LLC running, and consider an ITIN only if your personal tax situation requires it.

US Tax Identification Numbers (TINs) Explained

Before diving into the differences between EIN and ITIN for your US LLC, it’s important to understand the basics of Taxpayer Identification Numbers (TINs).

A TIN is a nine-digit number issued by the IRS to identify individuals and businesses for tax filing and reporting. Think of it as your unique tax ID in the US. Without one, you can’t file federal taxes, open a US bank account, or set up an IRS tax account.

Types of US Tax IDs

There are three main types of TINs you might encounter:

For most non-residents, an SSN isn’t an option unless you hold a qualifying work visa. That leaves the EIN and ITIN, which serve different purposes and are not interchangeable.

"An EIN is a 9-digit number assigned to sole proprietors, corporations, partnerships, estates, trusts, and other entities for tax filing and reporting purposes. The information you provide on this form will establish your business tax account." – Internal Revenue Service

Here’s a quick distinction: ITINs always start with the number 9 and follow the format 9XX-XX-XXXX, while EINs use the XX-XXXXXXX format. Each has its own role in the tax system.

This foundation helps explain why non-residents often need both an EIN and an ITIN for various compliance requirements.

Why Non-Residents Deal With EINs and ITINs

For foreign-owned US LLCs, each type of TIN serves a specific purpose. The EIN is tied to your LLC and is essential for tasks like opening a business bank account, filing entity-level tax forms (such as Form 5472), and handling payment processors. On the other hand, the ITIN is your personal tax ID, used for filing individual tax returns or submitting Form W-8BEN to claim treaty benefits.

"The ITIN belongs to the individual. The EIN belongs to the business. The LLC filing belongs to the state formation process." – LLC Boost Academy

In short, while your LLC always requires an EIN, you’ll only need an ITIN for individual tax responsibilities.

What Non-Residents Need to Know About EINs

Let’s dive deeper into the essentials of Employer Identification Numbers (EINs) and what non-residents should understand about obtaining and using them.

What Is an EIN?

An Employer Identification Number (EIN) is a nine-digit tax ID issued by the IRS to identify a business entity. It follows the format XX-XXXXXXX and acts as a unique tax identifier for your LLC. While the EIN is specific to your business, personal tax obligations require a separate identifier – like an ITIN – highlighting the distinction between the two.

"Think of the EIN (XX-XXXXXXX format) as your LLC’s Social Security Number. The IRS assigns it to the entity, and it shows up everywhere the LLC needs to prove who it is." – Jett Fu, Founder, Global Solo

In practical terms, an EIN is essential for tasks like opening a business bank account and fulfilling tax obligations. Without it, your LLC may exist legally but won’t be operational.

When Non-Residents Need an EIN

Every U.S.-based LLC needs an EIN to comply with federal tax regulations and to verify its banking activities. For foreign-owned single-member LLCs, it’s also necessary for filing Form 5472 and a pro forma Form 1120. Failing to submit Form 5472 on time can result in hefty penalties – starting at $25,000 per missing form.

How Non-Residents Can Get an EIN

Here’s the good news: EINs are free from the IRS. However, non-residents can’t use the IRS’s online application system. According to the IRS:

"If you have NO legal residence, principal place of business, or principal office or agency in the United States or U.S. territories, you can’t use the online application to obtain an EIN." – Internal Revenue Service

Instead, non-residents must apply via phone, fax, or mail using IRS Form SS-4. On Line 7b of the form – where an SSN or ITIN is usually required – those without one can simply write "Foreign" or "N/A".

Here’s a breakdown of the application methods:

The phone method is the quickest. The IRS international EIN line operates Monday through Friday, from 6:00 AM to 11:00 PM Eastern Time. Before applying, ensure your LLC is already formed with the state to avoid delays. Once approved, keep your CP 575 confirmation letter safe – it’s required for opening a business bank account.

With your EIN secured, the next step involves understanding the role of the ITIN for personal tax responsibilities.

What Non-Residents Need to Know About ITINs

What Is an ITIN?

An Individual Taxpayer Identification Number (ITIN) is a 9-digit number issued by the IRS for tax purposes. It’s specifically for individuals who aren’t eligible for a Social Security Number (SSN) but still need to comply with U.S. tax laws. This number always begins with the digit 9 and follows the format: 9XX-XX-XXXX.

Here’s the key thing: an ITIN identifies you as an individual, not your business.

"The ITIN identifies you, the foreign individual, not your LLC. The IRS assigns it to people who have US tax obligations but do not qualify for a Social Security Number." – Jett Fu, Founder, Global Solo

It’s important to understand what an ITIN does – and doesn’t – do. It doesn’t allow you to work in the U.S., provide access to Social Security benefits, or impact your immigration status. The IRS makes this clear:

"An ITIN is for federal tax purposes only. It does not entitle you to social security benefits and doesn’t change your immigration status or your right to work in the United States." – Internal Revenue Service

When Non-Residents Need an ITIN

You don’t need an ITIN to form a U.S. LLC or to get an EIN for your business. While the EIN is essential for managing your company, the ITIN is tied to personal tax obligations. Non-residents typically need an ITIN in these situations:

• Filing Form 1040-NR: If you receive U.S.-source income – like royalties, rental payments, or consulting fees – you’ll need an ITIN to file your nonresident tax return.
• Claiming tax treaty benefits: An ITIN is necessary to reduce or eliminate the default 30% withholding on income such as dividends, interest, or royalties by completing Form W-8BEN.
• Banking or KYC requirements: Some U.S. banks and investment platforms require an ITIN to open personal accounts.

In practice, it’s best to focus on obtaining your EIN first, open your business accounts, and then apply for an ITIN if and when personal tax needs arise.

How Non-Residents Can Get an ITIN

To apply for an ITIN, you’ll need to complete IRS Form W-7, also known as the "Application for IRS Individual Taxpayer Identification Number." In most cases, you’ll need to attach your federal tax return (usually Form 1040-NR) unless you qualify for an exception, like claiming treaty benefits.

For identity verification, a passport is the only document the IRS accepts on its own. You have three ways to submit your application:

Processing times vary. Applications sent by mail can take 7–11 weeks, or up to 14 weeks during busy tax seasons (January through April). Using a Certifying Acceptance Agent can speed up the process to 4–6 weeks and eliminates the risk of mailing your passport. However, CAA services usually cost between $100 and $400.

One critical tip: make sure the name and details on Form W-7 match your passport exactly. Even a small error can lead to rejection.

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EIN vs. ITIN: Key Differences for Non-Residents

EIN and ITIN serve very different purposes for non-resident business owners. To keep it simple: the EIN identifies your LLC, while the ITIN identifies you as an individual. Mixing these up is a common mistake, but understanding their roles can save you from unnecessary confusion.

EIN vs. ITIN Comparison Table

These distinctions become especially important when navigating real-world scenarios.

Common Scenarios for Non-Residents

"A personal U.S. filing or treaty claim – not the LLC’s existence – triggers the need for an ITIN." – Slash

These examples highlight when you’ll need an EIN, an ITIN, or both.

How to Decide: EIN, ITIN, or Both?

Making the right choice boils down to two questions: one about your business and one about your personal tax situation.

For your LLC: Every US LLC must have an EIN. It’s essential for opening business bank accounts, paying employees, and handling business tax filings. Without it, your LLC can’t operate effectively.

For yourself: An ITIN is only necessary if you have a personal US tax obligation. Ask yourself: Do I earn US-source income that requires a personal tax return? Do I want to claim tax treaty benefits to reduce withholding taxes? If the answer is yes to either, you’ll need an ITIN. If not, you can skip it for now.

The best approach is to first form your LLC and secure an EIN. Once your business is set up, only apply for an ITIN if your personal tax situation requires it. Remember, each number serves a specific purpose – one for your business and one for you personally.

How BusinessAnywhere Handles EIN and ITIN Applications

BusinessAnywhere makes it easier for non-resident entrepreneurs to apply for EINs and ITINs by managing the often complicated process for them. Since the IRS online EIN tool requires either an SSN or ITIN, international founders must rely on manual application channels. BusinessAnywhere steps in to handle these channels – whether by phone, fax, or mail – so you don’t have to. This approach ensures a smooth process for obtaining the tax identification numbers you need.

When it comes to EIN applications, BusinessAnywhere keeps things straightforward. They prepare and submit Form SS-4 using your foreign passport details, meaning you don’t need an SSN. For a fee of $97, all you need is a valid passport. Once your form is ready, BusinessAnywhere submits it via fax or mail to ensure timely processing. They also ensure that the "responsible party" listed on the form is the actual business owner, meeting IRS requirements.

"We prepare and submit the IRS application using your foreign details where allowed." – BusinessAnywhere Help Center

After obtaining your EIN, the next step often involves applying for an ITIN, which is more complex. ITIN applications usually require a filed US tax return. BusinessAnywhere connects you with specialists who simplify this process, especially if you need to file Form 1040-NR or claim tax treaty benefits. They also provide support for related filings, ensuring your tax ID applications are part of a complete solution.

Everything is managed through a single online dashboard. This dashboard allows you to track the status of your EIN or ITIN application, stay on top of compliance deadlines, such as Form 5472 filing requirements, and even access banking partner connections. Once your EIN is confirmed, you can open a US business bank account remotely.

"Our team takes care of all the filings and paperwork, while you track everything inside your all-in-one dashboard." – BusinessAnywhere

BusinessAnywhere supports founders from over 80 countries, offering integrated assistance at every step of establishing a US-based business.

Conclusion

Understanding the difference between your business and personal tax identifiers is essential. Here’s the key takeaway: your LLC’s EIN is for business purposes, while the ITIN is for personal tax identification. Every US-based LLC must have an EIN to handle tasks like opening a bank account, accepting payments, and filing business taxes. On the other hand, an ITIN is only necessary if you have personal tax obligations – such as filing Form 1040-NR or claiming tax treaty benefits via Form W-8BEN.

Focus on securing your LLC and EIN first. Don’t hold up your business operations waiting for an ITIN, as it’s only required for personal tax filings. Keep in mind that ITIN processing can take 7–11 weeks, so plan accordingly if you need one.

"Non-resident founders confuse the EIN and ITIN constantly… putting the wrong one on the wrong form will stall your filings." – Jett Fu, Founder, Global Solo

When filing forms, use your EIN for business-related paperwork like Form 5472 and Form 1120. Reserve your ITIN for personal forms like Form 1040-NR and Form W-8BEN. Using the correct identifier ensures smooth processing and avoids IRS delays.

For hassle-free applications, BusinessAnywhere provides a fully remote solution for obtaining both EINs and ITINs. They handle everything – from preparing Form SS-4 with your foreign passport details to connecting you with ITIN specialists – all through a single, user-friendly online dashboard at a transparent fee.

FAQs

Can I open a U.S. business bank account with only an EIN?

Yes, non-residents can open a U.S. business bank account using an EIN (Employer Identification Number). Most banks will ask for this number along with personal identification, such as a valid passport. While some banks might request an ITIN (Individual Taxpayer Identification Number) for certain account signers, this is typically optional.

To meet banking requirements, make sure you have the following ready:

• Your LLC formation documents
• A verifiable U.S. business address

Having these essentials prepared will help streamline the process and ensure compliance with banking regulations.

What should I put on Form SS-4 if I don’t have an SSN or ITIN?

If you’re a foreign responsible party and don’t have an SSN or ITIN, you still need to fill out line 7b on Form SS-4. According to IRS guidelines, write "Foreign" or "N/A" in this field. It’s crucial not to use a false or borrowed identification number, as doing so could lead to your application being rejected. This approach lets you move forward without obtaining an ITIN beforehand.

Will I need an ITIN if my LLC has no U.S.-source income?

If your LLC doesn’t have any U.S.-source income and you don’t have other U.S. tax filing requirements, you generally won’t need an ITIN. ITINs are meant for individuals who need to file a U.S. tax return, such as Form 1040-NR, or claim tax treaty benefits. For foreign-owned LLCs without effectively connected income, obtaining an ITIN is typically not required.

Related Blog Posts

• How Non-US Citizens Can Start a US LLC
• How to Get an EIN for a Real Estate LLC
• EIN and ITIN for Non-Resident Business Taxes
• EIN vs ITIN vs SSN: Which ID Does Your Business Need?