Starting a business in the U.S. or earning income as a non-resident often comes with one big question: Do I need an ITIN, an EIN, or both?

These two numbers are often confused, but they serve very different purposes. Understanding the difference is crucial for staying compliant with U.S. tax laws and running your business smoothly. In this guide, we’ll explain what ITIN and EIN mean, who needs them, and how to get them.

What is an ITIN?

An ITIN (Individual Taxpayer Identification Number) is a tax processing number issued by the IRS. It’s designed for individuals who are not eligible for a U.S. Social Security Number (SSN) but still need to file taxes.

Who Needs an ITIN?

• Non-residents who earn U.S. income.
• Foreign nationals are required to file U.S. tax returns.
• Dependents or spouses of U.S. citizens/residents without SSNs.
• Non-resident partners in U.S. LLCs.

What You Can Do With an ITIN:

• File U.S. tax returns.
• Comply with IRS requirements.
• Receive refunds if eligible.

Important: An ITIN is strictly for tax purposes. It does not authorize you to work in the U.S. or provide immigration benefits.

What is an EIN?

An Employer Identification Number (EIN) is a unique nine-digit number issued by the IRS to businesses. It acts like a Social Security Number for your company.

Who Needs an EIN?

U.S. LLCs (single-member or multi-member).

Corporations and partnerships.

Businesses are hiring employees.

Foreign-owned businesses wanting a U.S. bank account.

What You Can Do With an EIN:

• File business taxes.
• Open a U.S. business bank account.
• Hire employees.
• Build credibility with partners and clients.

ITIN vs EIN: Key Differences

When Do You Need an ITIN?

If you earn personal income in the U.S. but don’t qualify for an SSN.

If you’re a partner in a U.S. LLC, you must file taxes.

If you need to comply with U.S. tax obligations as a foreigner.

When Do You Need an EIN?

If you’ve formed a U.S. LLC or corporation.

If you plan to open a U.S. business bank account.

If your business will hire employees.

If your LLC needs to file business tax returns.

Can You Have Both ITIN and EIN?

Yes. Some foreign entrepreneurs need both:

• ITIN → for filing their personal taxes.
• EIN → for running their LLC or corporation.

For example, A foreign-owned single-member LLC often requires both numbers to meet IRS requirements.

How to Apply for ITIN and EIN

Apply for ITIN (Form W-7):

Submit Form W-7 to the IRS with proof of identity (passport).

Often done during tax return filing.

Apply for EIN (Form SS-4):

File Form SS-4 with the IRS.

Non-residents can apply by fax or mail.

Many entrepreneurs use a formation service like Corpulate.com to simplify the process.

Common Mistakes to Avoid

❌ Thinking ITIN and EIN are the same.

❌ Filing EIN before LLC formation.

❌ Not renewing an expired ITIN.

❌ Mixing personal and business tax IDs.

Final Thoughts

While ITIN and EIN sound similar, they serve completely different purposes. ITIN is for individual tax identification, while EIN is for business tax and compliance. Depending on your situation, you may need one or both.

At Corpulate.com, we guide entrepreneurs and non-residents through LLC formation, EIN applications, and ITIN support, making U.S. business compliance simple and stress-free.