EIN vs ITIN: What They Are & Why Your Business Might Need Both.

If you’re starting a business in the United States—especially as a non-U.S. resident—you’ve likely come across two terms: EIN and ITIN. While they may sound similar, they serve very different purposes. Knowing the difference is critical if you want to operate legally, file taxes properly, and access essential tools like U.S. bank accounts and payment gateways.

In this blog post, we’ll break down what EINs and ITINs are, who needs them, and why your business might need one—or both. Whether you’re forming an LLC or managing e-commerce income from platforms like Amazon or Stripe, this guide will help you understand your U.S. tax identity requirements.

What is an EIN (Employer Identification Number)?

An EIN is a federal tax ID number issued by the Internal Revenue Service (IRS) to identify a business entity operating in the United States. It functions like a Social Security Number, but for your company.

Key Facts About EIN:

• Stands for: Employer Identification Number

• Issued by: IRS (Internal Revenue Service)

• Who it’s for: LLCs, Corporations, Partnerships, Sole Proprietors with employees

• Primary Use: Filing taxes, hiring employees, opening U.S. business bank accounts, applying for payment processors (Stripe, PayPal)

When You Need an EIN:

• Forming a U.S. LLC or Corporation

• Applying for a U.S. bank account or Stripe account

• Hiring employees or freelancers in the U.S.

• Filing U.S. federal taxes

• Applying for business credit

If you’re a non-resident forming a U.S. company, the EIN is your official business identity number in the U.S. tax system. You don’t need to have a Social Security Number to get one, but you may need to submit Form SS-4 via fax or mail—and that’s where services like iFiler come in handy.

What is an ITIN (Individual Taxpayer Identification Number)?

An ITIN is a personal tax identification number issued by the IRS to individuals who need to file or report taxes in the U.S. but are not eligible to receive a Social Security Number (SSN).

Key Facts About ITIN:

• Stands for: Individual Taxpayer Identification Number

• Issued by: IRS

• Who it’s for: Non-resident individuals, foreign investors, or business owners

• Primary Use: Filing personal income tax returns, receiving tax refunds, complying with IRS requirements

When You Need an ITIN:

• You’re a foreign owner of a U.S. LLC and need to report your share of income

• You’re eligible for a U.S. tax treaty benefit and must file a tax return

• You receive U.S.-sourced income from Amazon, YouTube, or other platforms that issue a 1099 form

• You need to claim a refund of withholding tax from the IRS

• You’re a dependent or spouse of a U.S. taxpayer but not eligible for an SSN

In short, if the EIN is the number used to identify your business, the ITIN is used to identify you personally as a foreign taxpayer.

Why Do Some Business Owners Need Both EIN and ITIN?

Depending on your structure and income, many foreign entrepreneurs will need both an EIN and an ITIN.

Here’s why:

• You use the EIN to register your LLC, open bank accounts, and operate the business.

• You use the ITIN to file your personal U.S. tax return if you’re considered a member of a pass-through entity like a single-member LLC.

For example, if your U.S. LLC earns income through Amazon, the IRS may consider that as U.S.-sourced income. Even if you don’t live in the U.S., you’re required to report that income—and an ITIN allows you to do so legally and possibly reduce your tax rate through treaty benefits.

Common Scenarios Explained

🔹 Scenario 1: Foreign Entrepreneur with a U.S. LLC

• You formed an LLC with iFiler.

• You need an EIN to open a bank account and receive payments.

• You also need an ITIN to file a 1040-NR tax return and declare business income.

🔹 Scenario 2: Selling on Amazon or Stripe as a Non-Resident

• Amazon asks for your EIN to verify your business.

• Amazon or Stripe may withhold 30% tax unless you provide a W-8BEN form using your ITIN to claim treaty benefits.

🔹 Scenario 3: You Invest in U.S. Real Estate or Partnerships

• You receive passive income from the U.S.

• The IRS expects you to file a return and report this income using an ITIN.

• If you own the investment through an LLC, you’ll also need an EIN for the company.

How to Apply for an EIN and ITIN

✅ Applying for an EIN:

• You fill out Form SS-4

• If you don’t have an SSN, you may need to send it via fax or mail

• Processing time can take 1–3 weeks without help

• iFiler can get it for you in as little as 1–5 business days, even without an SSN

✅ Applying for an ITIN:

• You fill out Form W-7

• You must submit identity documents (e.g., passport)

• It must be sent to the IRS by mail, through an IRS-authorized agent, or with help from a Certifying Acceptance Agent (CAA)

• Processing usually takes 7–10 weeks

At iFiler, we provide end-to-end assistance with EIN and ITIN applications—making the paperwork stress-free and ensuring faster processing.

Important Notes

• ITINs expire if not used on a tax return in 3 years.

• EINs do not expire, but if you change business structure, you may need a new one.

• Having an ITIN does not give you immigration rights or permission to work in the U.S.

• An ITIN is not the same as an SSN or business license.

Conclusion: Which One Do You Need?

If you’re a non-resident entrepreneur forming a U.S. company:

• You definitely need an EIN to operate your business

• You may need an ITIN to stay tax compliant and avoid overpaying withholding taxes

Understanding the difference between EIN and ITIN can save you money, protect you from penalties, and ensure you’re operating legally in the U.S. market.

Let iFiler Handle It for You

At iFiler, we simplify your U.S. expansion with:

• EIN application support (no SSN needed)

• ITIN assistance with IRS-compliant documentation

• Company formation, bank setup, and tax filing

• Support for Amazon, Stripe, Payoneer, and more

📩 Contact our team to get started with your EIN or ITIN today.
🌐 Visit iFiler.us for complete packages tailored for non-U.S. entrepreneurs.
🚀 Let’s make your U.S. business dream a reality—no stress, just results.