ITIN vs EIN: Complete Comparison Guide

What Is an ITIN?

An ITIN (Individual Taxpayer Identification Number) is a nine-digit number the IRS assigns to individuals who need a US tax ID but cannot qualify for a Social Security Number. The IRS introduced the ITIN program in 1996 to ensure that non-resident aliens, their spouses, and their dependents can meet US tax filing obligations regardless of their immigration status.

ITINs follow the same XXX-XX-XXXX format as Social Security Numbers, but they always start with the digit 9 and use specific middle-digit ranges (50-65, 70-88, 90-92, or 94-99). You apply using IRS Form W-7, along with proof of identity and foreign status. The standard processing time through the IRS runs 7 to 11 weeks. For a full overview of what an ITIN is and who qualifies, read our complete ITIN guide.

An ITIN does not authorize employment in the United States. It does not qualify you for Social Security benefits or the Earned Income Tax Credit. Its sole purpose is federal tax identification. People who need an ITIN include non-resident freelancers, foreign investors with US income, spouses of US taxpayers, and international students with tax filing requirements.

What Is an EIN?

An EIN (Employer Identification Number) is a nine-digit number the IRS assigns to business entities operating in the United States. Think of it as a Social Security Number for your company. EINs use the format XX-XXXXXXX, which looks different from the ITIN and SSN format. Every LLC, corporation, partnership, non-profit, trust, and estate that operates in the US needs one.

You need an EIN to hire employees, open a business bank account, file business tax returns, and apply for certain licenses and permits. The EIN ties all of your business activity together under a single identifier that the IRS uses to track your company's tax obligations. Learn more about the application process on our EIN application guide.

If you already hold an SSN or ITIN, you can apply for an EIN online through the IRS EIN Assistant and receive it immediately. Without an SSN or ITIN, you must submit Form SS-4 by fax or mail, which takes 4 to 5 weeks. This is one of the main reasons non-US business owners get their ITIN first. It unlocks the instant online EIN application, saving weeks of waiting.

ITIN vs EIN: Side-by-Side Comparison

This table breaks down the core differences between an ITIN and an EIN across every dimension that matters for non-US individuals and business owners. For an even deeper dive, visit our dedicated ITIN vs EIN comparison page.

When You Need an ITIN

An ITIN is required whenever a non-US individual has federal tax obligations in the United States but cannot obtain a Social Security Number. The IRS does not care about your immigration status for tax purposes. If you owe taxes or need to file a return, you need a taxpayer identification number. Here are the most common situations:

• Freelance income from US clients. If a US company pays you for contract work, they may withhold taxes and report payments to the IRS. You need an ITIN to file a return and claim any refund you are owed.
• US investment income. Interest, dividends, and capital gains from US investments trigger tax obligations that require an ITIN for reporting.
• Rental property income. Non-residents who own US real estate and collect rent must file a US tax return using an ITIN.
• Tax treaty benefits. To claim reduced withholding rates under a US tax treaty with your home country, you need an ITIN to complete W-8BEN forms.
• Spouse or dependent of a US taxpayer. If you are claimed on someone else's US tax return and cannot get an SSN, you need your own ITIN.

An ITIN also opens doors beyond tax filing. Many US banks accept ITINs for personal bank accounts, and an ITIN helps you build a US financial history. See our guide on opening a bank account with an ITIN for specific bank options.

When You Need an EIN

An EIN is the tax identification number for your business entity. While an ITIN identifies you as an individual, an EIN identifies your company. You need an EIN in these situations:

• Forming a US LLC or corporation. Any business entity registered in the United States needs an EIN to file tax returns and conduct business operations.
• Hiring employees. If your business employs workers in the US, you must have an EIN to report payroll taxes, issue W-2 forms, and make tax deposits.
• Opening a business bank account. US banks require an EIN to open accounts for LLCs, corporations, and partnerships. Your personal ITIN alone is not sufficient for business banking.
• Filing business tax returns. Whether your entity files Form 1120 (corporation), Form 1065 (partnership), or another business return, the EIN is the identifying number on every filing.
• Applying for business licenses. Many state and local governments require an EIN as part of the business licensing process.

Non-US residents who form LLCs through services like Wyoming or Delaware registered agents will need an EIN for their entity. Even single-member LLCs owned by non-residents have annual reporting requirements (Form 5472) that require an EIN. Read more about ITIN and EIN requirements for LLC owners.

When You Need Both an ITIN and an EIN

Many non-US individuals need both numbers, and understanding why prevents confusion and delays. The short version: your ITIN goes on your personal tax return, and your EIN goes on your business tax return. These are separate filings for separate purposes.

If you own a single-member LLC, the IRS treats it as a disregarded entity by default. That means your LLC's income flows through to your personal tax return. You need the EIN for your LLC's administrative filings (Form 5472, bank accounts, business contracts) and the ITIN for your personal tax return (Form 1040NR) where you report the LLC's income.

Multi-member LLCs work similarly but add a layer. The LLC files Form 1065 (partnership return) using its EIN, and each foreign member files their own personal return using their individual ITIN. Every member needs their own ITIN.

There is also a practical reason to get your ITIN first: the IRS online EIN application requires the responsible party to enter an SSN or ITIN. Without either number, you are stuck with the slower fax or mail process. Getting your ITIN first unlocks instant online EIN registration, saving you 4 to 5 weeks.

Decision Framework: Which Tax ID Do You Need?

Use these three scenarios to determine exactly which tax ID applies to your situation. Most non-US individuals fall clearly into one of these categories.

How to Get Each: Step-by-Step Process

The application process for an ITIN and an EIN are completely different. Here is how each one works.

Getting an ITIN

1. Gather your documents. You need a valid passport (or two secondary documents from the IRS-approved list) and a reason for applying, such as a qualifying tax return or treaty benefit claim.
2. Complete IRS Form W-7. Fill out the form with your personal information, reason for applying, and attach the required documents.
3. Choose your submission method. You can mail everything to the IRS ITIN Operation center in Austin, Texas (and send your original passport), visit a Taxpayer Assistance Center in person, or work with a Certifying Acceptance Agent who verifies your documents so you keep your passport.
4. Wait for processing. The IRS takes 7 to 11 weeks to process W-7 applications. You receive a CP565 notice with your ITIN assignment by mail.

Getting an EIN

1. If you have an SSN or ITIN: Visit the IRS EIN Assistant online. Enter your personal tax ID as the responsible party, fill in your business details, and receive your EIN immediately at the end of the session.
2. If you do not have an SSN or ITIN: Complete Form SS-4 and write "Foreign" in the SSN/ITIN field. Submit by fax to (855) 641-6935 for a response in about 4 business days, or mail it to the IRS for processing in 4 to 5 weeks.

The recommended path for non-US individuals who need both: get your ITIN first, then use it to apply for your EIN online for instant issuance. This approach saves the most time overall, even though the ITIN application itself takes several weeks.

Cost Comparison: ITIN vs EIN

Both tax IDs are free to obtain directly from the IRS. The costs below reflect what you pay when using professional services to handle the application, which most non-US residents prefer because of the document verification requirements.

Using a Certifying Acceptance Agent for your ITIN application is the most popular option because it eliminates the need to mail your original passport to the IRS. The agent verifies and certifies your documents locally, so your passport stays with you throughout the entire process.