Founders of US companies often hear about EINs and ITINs in the same conversation, and the two are easy to confuse. Both are issued by the Internal Revenue Service (IRS), and both are taxpayer identification numbers. They identify different things.
What is an EIN?
An Employer Identification Number (EIN) is a nine-digit number the IRS assigns to a business entity. Despite the name, you do not need employees to have one. Banks, payment providers, marketplaces and suppliers commonly ask for an EIN when a US company opens an account.
Businesses apply using the information on Form SS-4. The IRS online application requires the responsible party to have a Social Security Number or ITIN. Applicants without either can apply by fax or mail, as explained in the IRS instructions.
What is an ITIN?
An Individual Taxpayer Identification Number (ITIN) is issued to individuals who need a US taxpayer number but are not eligible for a Social Security Number. Applications use Form W-7 and are generally submitted with a federal tax return unless an exception applies. The IRS also requires proof of identity and foreign status.
An ITIN is for tax purposes only. It does not authorise work in the United States or change immigration status.
The key difference
| EIN | ITIN | |
|---|---|---|
| Identifies | A business entity | An individual taxpayer |
| IRS form | Form SS-4 | Form W-7 |
| Typical use | Bank and payment accounts, business tax filings | Individual US tax returns |
Do I need both?
Not necessarily. Many non-US owners of a US LLC need an EIN for the company and never need an ITIN. You may need an ITIN if you personally have to file a US tax return. Because this depends on your income and circumstances, confirm your situation with a qualified US tax professional.
Check the official guidance
IRS procedures change. Before applying, read the current guidance on EINs and ITINs on irs.gov.
How we can help
See EIN Application Assistance and ITIN Application Assistance, or request a quotation and tell us about your situation.
About the author
Zoya Shahbaz is Managing Director of ECom Seller Core and writes about company formation. Meet our team.
This article is general information, not legal or tax advice. Rules and procedures change; check current official sources or ask a licensed professional about your situation.