EIN vs ITIN for Opening a US Business Bank Account

If you are a non-US founder trying to open a US business bank account, you have probably seen EIN and ITIN used interchangeably online. They are not the same thing, and only one of them is what your bank will ask for.

The quick answer

You need an EIN to open a US business bank account. You do not need an ITIN. This surprises a lot of founders because so much generic advice about 'US tax numbers' lumps the two together. In practice, banks that serve non-resident founders, including Mercury, Wise Business, and Relay, ask for your EIN, your LLC formation documents, and a form of personal ID. None of them require an ITIN as a condition of opening an account.

The confusion is understandable. Both are issued by the IRS, both look like a string of digits, and both get called 'your US tax ID' in casual conversation. But they exist for different reasons, are issued to different things, and are requested by different people.

What an EIN actually is

An EIN, Employer Identification Number, identifies your business, specifically your LLC, to the IRS. It is the business equivalent of a personal ID number. You apply for it using Form SS-4. If you have a US Social Security Number you can often get one instantly online. If you do not, which is the case for almost every non-US founder, you apply by fax or mail, or by calling the IRS international applicant line. There is no requirement to have a US visa, a US address, or an SSN to get an EIN. It exists specifically so that non-resident owners can identify their business to the IRS and to banks.

Once your LLC has an EIN, that number is what you hand to a bank, to Stripe, to a payment processor, or to a vendor asking for a W-9 or W-8. It is tied to the business, not to you personally.

What an ITIN actually is

An ITIN, Individual Taxpayer Identification Number, identifies a person, not a business, for US tax purposes. It exists for people who are not eligible for a Social Security Number but who still have some obligation to file a US tax return or appear on one. Common examples are a non-resident who earns US-sourced income that gets taxed at the individual level, or a founder who needs to be named on a personal US tax filing.

An ITIN is not a work permit, does not require a visa, and does not grant any immigration status. It is purely a tax processing number for individuals. Most founders running a foreign-owned single-member LLC with no US-sourced personal income never end up needing one, because the LLC's information return does not require the owner to have an ITIN in order to be filed correctly. It is possible to leave certain reference fields blank or use alternative identifiers when no ITIN exists yet, which is one reason applying for one is not automatically part of setting up your company.

Why banks care about the EIN and not the ITIN

From a bank's perspective, they are opening an account for a legal entity, your LLC. Under US banking rules they need to verify the entity (via your EIN and formation documents) and verify the individual behind it (via passport or other government ID, plus proof of address). Nowhere in that process does a personal US tax filing number come into play, because you have not yet triggered a personal filing obligation just by owning a company.

This is why fintech-friendly banks built for international founders, Mercury, Wise Business, and Relay among them, will ask for your EIN, articles of organization, and photo ID, and will not ask for an ITIN. If a bank ever does ask you for one specifically to open a business account, it is worth double checking that they are not confusing you with a sole proprietor setup rather than an LLC.

EIN vs ITIN at a glance

So when would you actually need an ITIN

You are more likely to need an ITIN if you personally, not just your LLC, generate US-sourced income that requires you to file a personal US tax return, or if a specific bank, lender, or platform explicitly asks for one to satisfy their own internal policy. Some founders also get one proactively if they anticipate needing to file a personal return later. But for the specific, narrow task of opening a business bank account for your LLC, it is not the number you need. Do not let a service upsell you on an ITIN as a prerequisite for banking when it usually is not.

Do not skip the annual filing because you got banking sorted

Getting your EIN and opening a bank account is only part of staying compliant. A foreign-owned single-member LLC is required to file Form 5472 along with a pro-forma Form 1120 every year, even if the company had zero revenue and zero activity. This is an information return, it does not calculate or owe tax by itself, but skipping it carries a penalty of $25,000 per missed year. Founders sometimes assume that because there was no income, there is nothing to file. That assumption is exactly what triggers the penalty, so mark this on your calendar the moment your LLC and EIN exist.

How Founders Credit handles this

We set up the LLC (commonly in Wyoming, the default low-cost, privacy-friendly state for non-resident founders), get the EIN filed with the IRS, and open the business bank account and cards, all done-for-you and remotely, without requiring you to fly to the US or already hold an ITIN. If your specific situation later calls for an ITIN, we will tell you plainly rather than adding it as an unnecessary step.

Glossary

• EIN (Employer Identification Number): A business tax ID issued by the IRS via Form SS-4, required for every LLC and used to open bank accounts and file taxes.
• ITIN (Individual Taxpayer Identification Number): A personal tax ID for individuals who are not eligible for an SSN but have a US tax filing obligation, applied for via Form W-7.
• SSN (Social Security Number): A personal ID number issued to US citizens and certain residents, not available to most non-resident founders.
• Form 5472: An annual IRS information return required for foreign-owned single-member LLCs, filed alongside a pro-forma Form 1120, with a $25,000 penalty for non-filing.
• Registered agent: A person or company with a physical address in your LLC's state, required to receive legal and state mail on the company's behalf.

Frequently asked questions