ITIN vs EIN: What's the Difference and Which Do You Need

If you are forming a US LLC from Europe, you will run into two confusing IRS numbers almost immediately. Here is what an ITIN and an EIN actually do, and which one your business needs first.

ITIN vs EIN: the quick answer

An EIN (Employer Identification Number) belongs to your business. An ITIN (Individual Taxpayer Identification Number) belongs to you, as a person. Almost every non-US founder needs an EIN to run a US LLC. Most do not need an ITIN unless they personally have to file a US tax return, claim a tax treaty benefit, or a specific bank or platform asks for one. The two are issued by the IRS but serve different purposes, and you do not need one to get the other.

What is an EIN

An EIN is the tax ID number for your LLC or corporation, similar in concept to a VAT or company registration number back home, except it is issued by the IRS specifically for federal tax purposes. You need an EIN to open a US business bank account, apply for a business card, file the annual paperwork your LLC is required to submit, and generally to be recognised as a real, operating US entity.

Non-US founders without a Social Security Number can still get an EIN. You apply using Form SS-4, and the IRS lets applicants without an SSN or ITIN submit by fax or mail, using a designated "third party designee" line if someone is filing on your behalf. It usually is not instant, but it does not require a US visa, a US address, or a US person on the application.

What is an ITIN

An ITIN is a nine digit number the IRS issues to individuals who need a US taxpayer identification number but are not eligible for a Social Security Number. Crucially, an ITIN has nothing to do with immigration status. You do not need a visa, a green card, or any right to work in the US to get one. It exists purely for tax administration, so someone can be correctly identified on a tax return or tax document even though they are not a US person for immigration purposes.

You apply for an ITIN with Form W-7. In most cases, the IRS wants a US federal tax return attached to prove you actually need the number, though there are specific exceptions, including one commonly used by owners of foreign-owned LLCs who need to report to the IRS without yet having taxable US income.

ITIN vs EIN at a glance

Do you actually need an EIN

If you have formed, or are forming, a US LLC, the answer is yes, essentially without exception. You cannot open a US business bank account without one, and you cannot properly file the paperwork the IRS requires of foreign-owned LLCs without one either. Even an LLC that made no money at all in a given year still needs an EIN, because a foreign-owned single-member LLC treated as a disregarded entity must file Form 5472 along with a pro-forma Form 1120 every year, purely as an information return. There is no income tax calculation on that form by itself, but skipping the filing carries a penalty starting at $25,000, which is a serious number for a company that may have had zero revenue.

Do you actually need an ITIN

This is where founders often get confused, sometimes by advice aimed at US freelancers rather than non-resident business owners. You typically need an ITIN if:

• You personally owe US tax and need to file a personal US tax return
• You want to claim a reduced withholding rate under a tax treaty between your home country and the US
• A specific platform, payer, or financial institution requires a personal US taxpayer number from you, not just from your LLC

You generally do not need an ITIN just to form an LLC, get an EIN, or open a US business bank account through providers built for non-residents, such as Mercury, Wise, or Relay. Those onboard remotely using your EIN, passport, and business details. Many founders run a fully compliant, banked US LLC for years without ever needing a personal ITIN.

Can you get an EIN without an ITIN or SSN

Yes. This trips people up because US-based guides often assume you already have one or the other. As a non-resident applying for an EIN for your LLC, you leave the SSN/ITIN field blank or follow the non-resident instructions on Form SS-4, and the IRS still issues the EIN. The EIN is tied to the business, and the "responsible party" section identifies you as an individual without requiring you to already hold a US personal tax number.

A short glossary

EIN: the IRS tax ID for a business entity, required for banking and filings. ITIN: the IRS tax ID for an individual who cannot get an SSN, used for personal tax matters. SSN: Social Security Number, issued to US citizens and certain authorised workers, not available to most non-resident founders. Form SS-4: the application used to request an EIN. Form W-7: the application used to request an ITIN. Form 5472: an annual information return foreign-owned LLCs must file alongside a pro-forma Form 1120, even with no income, with steep penalties for missing it. Disregarded entity: the default tax status of a single-member LLC, meaning the LLC itself is not taxed separately from its owner for federal purposes, though it must still report activity to the IRS.

How Founders Credit fits in

Sorting out which number you need, in which order, and how to apply as a non-resident is one of the more common places founders get stuck or delayed. Founders Credit sets up the LLC, obtains the EIN, and where an ITIN genuinely applies to your situation helps you through that process too, then gets your US business bank account and cards active, all done-for-you and fully remote, so you are not guessing your way through IRS forms designed with US residents in mind.

Frequently asked questions