ITIN vs SSN vs EIN: Which One Do You Actually Need?

Founders confuse these three IDs constantly, and getting it wrong can delay your bank account by weeks. Here is what each one actually does, and which ones a non-US founder really needs.

The short answer

As a non-US founder, you will almost certainly need an EIN for your LLC. You will probably not need an SSN, because you are not a US citizen or resident. You may or may not need an ITIN, depending on whether you personally have to file a US tax return. These three numbers get confused constantly because they all look similar on paper, nine digits, issued by the IRS or Social Security Administration, used on tax forms. But they identify different things and come from different applications.

Quick glossary

EIN (Employer Identification Number): a nine digit number that identifies your business to the IRS. Every US LLC needs one to open a bank account, file tax returns, and hire anyone. It has nothing to do with your personal immigration or tax status.

SSN (Social Security Number): issued to US citizens, permanent residents, and certain visa holders authorized to work in the US. It is a personal identifier tied to employment eligibility and Social Security benefits. Non-resident founders who never live or work in the US generally cannot get one, and do not need one.

ITIN (Individual Taxpayer Identification Number): a personal tax ID for people who need to file or be listed on a US tax return but are not eligible for an SSN. Crucially, you do not need a US visa to get an ITIN. It exists specifically for people the SSN system does not cover, including many non-resident business owners.

EIN vs ITIN vs SSN at a glance

EIN: the one you definitely need

Your LLC needs an EIN before it can do almost anything useful, open a bank account, sign up for Stripe or a merchant account, hire a contractor, or file the annual tax paperwork the IRS requires. The good news is you do not need an SSN or ITIN to get one.

The IRS's online EIN application does require a responsible party with an SSN or ITIN, which trips up a lot of founders who try to do this themselves. But non-residents without either can still apply by submitting Form SS-4 by fax or mail, or in some cases by phone through the IRS's international line. It just takes longer, often several weeks, and the form has to be filled out correctly the first time or it gets rejected and you start the clock over. This is one of the most common places founders get stuck, and it is exactly the kind of paperwork a done-for-you service like Founders Credit handles so you are not stuck on hold with the IRS from a different time zone.

SSN: you probably don't need this

If you are not a US citizen, do not have a green card, and are not working inside the US on a visa that grants work authorization, you are not eligible for an SSN and you do not need one to form a company, get an EIN, or open a US business bank account. Anyone who tells you otherwise is confusing SSN with ITIN.

ITIN: the one people misunderstand

An ITIN is not required to form an LLC or get an EIN. It becomes relevant when you, as an individual, have a reason to file a US personal tax return. Common reasons for a non-resident founder include:

• Your LLC's income is treated as effectively connected with a US trade or business, which can trigger a personal filing obligation
• You want to claim a benefit under a US tax treaty with your home country
• A bank or payment processor specifically requires an ITIN to issue a personal card or account tied to you

Applying for an ITIN uses Form W-7, usually alongside the tax return that creates the need for it. Note that you cannot hold both an SSN and an ITIN. If you later become eligible for an SSN, the ITIN is retired.

Many founders running a simple foreign-owned single-member LLC never need an ITIN at all, because their US tax obligation is handled at the entity level rather than personally. Do not apply for one speculatively. Get advice on whether your specific structure creates a filing requirement first.

Don't forget the paperwork an EIN doesn't cover

Getting an EIN is not the end of your US compliance. If your LLC is foreign-owned and has no other US owners, it almost certainly needs to file Form 5472 alongside a pro-forma Form 1120 every year, even if the company had zero revenue and zero activity. This is an information return, it reports transactions between the LLC and its foreign owner rather than calculating tax owed, but skipping it is expensive. The penalty for a late or missing 5472 starts at 25,000 dollars, and it applies whether or not you owed any tax at all. This is separate from any ITIN question and catches out a surprising number of founders who assume no income means no filing.

Which state, and which bank

Most non-US founders default to forming their LLC in Wyoming, thanks to low annual fees and no state income tax, though Delaware is common if you're raising venture capital. Once you have your EIN and formation documents, opening a US business bank account remotely is realistic with providers like Mercury, Wise, or Relay, all of which are used to onboarding founders who have never set foot in the US. None of them require an SSN, though some may ask for an ITIN depending on the product.

Putting it together

For most European founders forming a single-member LLC, the practical path looks like this: form the LLC, get the EIN using Form SS-4 since you likely have no SSN or ITIN yet, open a US bank account with the EIN and formation documents, and file the annual 5472 and pro-forma 1120 regardless of income. An ITIN only enters the picture if a personal filing obligation or a specific bank requirement makes it necessary. This is the exact sequence Founders Credit manages end to end for founders who would rather not spend weeks decoding IRS forms.

Frequently asked questions