ITIN vs EIN: which one do you need?

ITIN vs EIN at a glance

An ITIN is for a person and an EIN is for an entity. Almost every other difference follows from that. The IRS describes the ITIN as a tax processing number for certain resident and nonresident aliens, their spouses and dependents who can’t get a Social Security number (SSN). It describes the EIN as a federal tax ID for businesses, tax-exempt organizations and other entities.

An ITIN doesn’t authorize work in the US or change your immigration status. And the IRS says an EIN is for business activities only: it shouldn’t be used in place of an individual’s own number. For how the individual numbers compare, see ITIN vs SSN and the full list of US tax ID numbers.

Is there a “business ITIN”?

No. The IRS issues ITINs only to individuals, so a company can’t have one. When people search for a “business ITIN” or a “tax ID for my business”, the number they need is usually an EIN.

The confusion comes from sole proprietors. If you trade under your own name without forming a company, you and the business are the same taxpayer, and the business income goes on your own return under your SSN or ITIN. Publication 519 puts it plainly: an individual may use an SSN (or ITIN) for individual taxes and an EIN for business taxes.

A sole proprietor also needs an EIN if they have employees or a qualified retirement plan, or have to file employment or excise tax returns. Without any of those, your ITIN may be the only number you need.

Which number each business structure needs

The legal form of your business decides whether the business needs its own EIN. Whether you personally need an ITIN is a separate question, covered further down.

Can a nonresident get an EIN without an SSN or ITIN?

Yes. The Form SS-4 instructions tell you to enter “foreign” or N/A on line 7b if the responsible party doesn’t have and isn’t eligible for an SSN or ITIN. The responsible party is the person who ultimately owns or controls the entity, and apart from government entities it must be an individual, not another company.

What you can’t use is the online application. The IRS online tool is for entities whose principal place of business is in the US or a US territory, and the responsible party needs a valid SSN, ITIN or EIN to use it. A foreign owner with none of these applies in one of three other ways:

Fill in Form SS-4 before you call, because the IRS representative works from it. The IRS issues one EIN per responsible party per day, whichever method you use, and it doesn’t charge for it.

If the EIN is for a US single-member LLC that you own from abroad, the SS-4 instructions say to check “Other” on line 9a and write “Foreign-owned U.S. disregarded entity-Form 5472”.

US LLC owners: EIN, ITIN or both?

Your LLC needs an EIN. You need an ITIN only if you personally have a US tax filing or reporting reason. The two numbers belong to different taxpayers, so having one doesn’t give you the other.

Why a foreign-owned LLC needs an EIN

A single-member US LLC owned by a foreign person is disregarded for income tax, but it’s treated as a corporation for Form 5472 reporting. In any year it has reportable transactions with a related party, which includes money you put into the LLC or take out of it, it must file Form 5472 attached to a pro forma Form 1120. It needs an EIN to do that.

Form 5472 doesn’t make you get an ITIN, though. It asks for a foreign owner’s US identifying number only if they have one, and accepts a reference ID number when they don’t.

When you need an ITIN as well

You need an ITIN when you, as an individual, have a federal tax purpose and can’t get an SSN. For LLC owners that usually means one of these:

• You have to file your own US return. Publication 519 says a nonresident alien must file Form 1040-NR if they’re engaged in a trade or business in the US, or have other US-source income on which tax wasn’t fully paid by withholding.
• You’re a member of an LLC taxed as a partnership that does business in the US. The Form W-8BEN instructions say such a partner is required to file a US federal income tax return and must have an ITIN.
• You’re claiming a tax treaty benefit and can’t give your home-country tax number instead.

If none of these applies, you may not need an ITIN at all, even though your LLC has an EIN. Whether an LLC’s income counts as US trade or business income depends on the facts, so check with a US tax professional before your first filing deadline.

Which number goes on W-8BEN, W-8BEN-E or W-9?

Individuals put an SSN or ITIN on Form W-8BEN, and entities put an EIN on Form W-8BEN-E or W-9. Form W-8BEN has no box for an EIN: line 5 asks for your SSN or ITIN, and only if it’s required.

The second row catches people out. The Form W-9 instructions say that if the owner of a disregarded entity is a foreign person, the owner completes a Form W-8 instead of a W-9, even if the owner has a US TIN.

On Form W-8BEN, a US TIN is needed mainly when you claim treaty benefits without giving your foreign tax number on line 6a, or when you’re a partner in a partnership doing business in the US. Our guide to filling in Form W-8BEN goes through it line by line.

What Stripe, PayPal and Amazon ask for

Payment platforms follow the same split between the company and the people behind it. For a US company account, Stripe asks the company’s representatives and owners for an SSN, or an ITIN if they don’t have an SSN. According to Stripe’s help center, a non-US individual with neither can give their local tax ID along with documents showing they aren’t a US taxpayer.

So on Stripe, owning a US company doesn’t by itself mean you need an ITIN. The rules differ by platform and account type: see our guides for Stripe, PayPal and Amazon sellers.

Getting both: the order to do it in

Most foreign founders get the EIN first and the ITIN later, because an ITIN application normally goes in with the tax return that needs the number.

1. 1

   Get the EIN for the company

   Apply by phone, fax or mail with Form SS-4. If you have no SSN or ITIN, write “foreign” on line 7b. The IRS doesn’t charge for it.

2. 2

   Work out whether you personally need to file

   Check whether you have US trade or business income, a partnership interest in a business operating in the US, or a treaty claim that needs a US number. A tax professional can confirm this for your situation.

3. 3

   Apply for the ITIN with your return

   Attach Form W-7 to the front of the federal return that needs the number, such as Form 1040-NR, unless one of the exceptions in the W-7 instructions applies. Allow 7 weeks, or 9 to 11 weeks from outside the US or between January 15 and April 30.

4. 4

   Use each number in its place

   The EIN goes on the company’s filings and on Form W-9 or W-8BEN-E. Your ITIN goes on your own return and your Form W-8BEN.

TheITINapp prepares and submits Form W-7 applications only. We don’t apply for EINs or prepare tax returns. How to apply for an ITIN covers the W-7 step in detail if you’d rather do it yourself.