ITIN for Business: Do You Need One?

Written by

itin.so Editorial Team

IRS-Authorized Certifying Acceptance Agents · Updated September 2026

An ITIN is for individuals, not businesses. Businesses need an EIN, the Employer Identification Number. Non-resident business owners still need an ITIN, because the business income eventually lands on a personal US tax return and that return cannot be filed without a taxpayer identification number for the person signing it. So if you own a US LLC or receive 1099 income, the usual answer is both: an EIN for the company and an ITIN for you.

Quick answer

Ask which one the form is about. If it identifies your company, that is the EIN. If it identifies you, that is the ITIN. Both are free from the IRS. The EIN arrives in minutes on Form SS-4; the ITIN takes 6 to 11 weeks on Form W-7.

Which Tax ID Does Each Situation Need?

Most of the confusion around an ITIN for business comes from treating the two numbers as competing options. They are not. Read this table as a checklist rather than a choice.

What You Need	Tax ID	Who Gets It	Cost
For your business	EIN	IRS issues it to the entity	Free
For your personal tax return	ITIN	IRS issues it to the individual	Free (Form W-7)
For hiring employees	EIN	Required	Free
For opening a business bank account	EIN	Required by banks	Free
For filing personal taxes as a non-resident	ITIN	Required if you have no SSN	Free (Form W-7)

Both numbers cost nothing from the IRS. What people pay for is preparation and, in the ITIN case, document certification. Our ITIN cost breakdown separates the government fee, which is zero, from the service fee.

Why Non-Resident Owners End Up Needing Both

A single-member LLC is a disregarded entity for federal tax purposes. The company does not pay income tax in its own name. Instead the profit passes through to the owner, who reports it on a personal return. That structure is the whole reason the ITIN question arises: the EIN got the company registered and banked, but the pass-through income has to be declared by a person, and the IRS will not accept a return with a blank identifying number.

The same logic applies to 1099 income. A US client who pays you directly, rather than paying your company, reports that payment against your personal tax number. Without an ITIN you have no number to give on Form W-8BEN or W-9, and the payer may apply backup or treaty-default withholding at up to 30 percent. Getting the ITIN is often the cheapest way to stop money being withheld that you were never going to owe.

How to Get Each Number

EIN, for the business

File Form SS-4 with the IRS
Free, with no government fee
Applicants with an SSN or ITIN get the number instantly online
Applicants with neither apply by fax or mail, which takes several weeks
Needed before you open the business bank account

Full walkthrough on our EIN service page.

ITIN, for you

File Form W-7 with the IRS
Free, with no government fee
Usually attached to the tax return it is needed for
Takes 6 to 11 weeks depending on the season
Requires proof of identity and foreign status, normally a passport

Full walkthrough on our Form W-7 guide.

Note the ordering trap. The instant online EIN application requires the responsible party to already hold an SSN or ITIN. If you have neither, the EIN still comes free, but by fax or mail on a slower track. Many non-resident owners sequence the ITIN first for exactly this reason.

Four Mistakes That Cost Owners Weeks

Putting the ITIN on business paperwork.A W-9 or vendor form asking for your company's taxpayer identification number wants the EIN. Supplying the ITIN links the payment to you personally and creates a reconciliation problem at filing time.
Applying for an ITIN with no filing requirement. The IRS issues ITINs to people who need to file or be claimed on a return. A W-7 submitted with no return attached and no qualifying exception is the most common rejection reason. See when a W-7 can be filed without a return.
Assuming the EIN covers personal obligations. The company having a number does not discharge your own filing duty. Form 5472 penalties for foreign-owned LLCs start at $25,000, and they are assessed regardless of whether the business made a profit.
Leaving the ITIN until filing season. Applications submitted between January and April sit in the longest queue of the year. Starting in autumn typically saves three to four weeks.

ITIN and Business Tax IDs at a Glance

ITIN is for individuals, EIN is for businesses. Non-resident business owners need both: an EIN for the business entity and an ITIN for personal US tax filing. Apply for an EIN using Form SS-4, which is free and instant online. Apply for an ITIN using Form W-7, which is also free and takes 7 to 11 weeks. An ITIN cannot be used as a business tax ID, and an EIN cannot be used on your personal return in place of one.

Related Guides

ITIN for LLC owners covers Form 5472 and the $25,000 penalty that catches foreign-owned single-member LLCs
ITIN vs EIN sets the two numbers side by side across nine differences
EIN application service for getting the business number without an SSN or ITIN
ITIN for non-US business owners walks through the full setup order: entity, EIN, banking, then ITIN
ITIN for freelancers for people billing US clients without a company

ITIN for Business: Frequently Asked Questions

Do I need an ITIN or EIN for business?

Both, in most non-resident cases. The EIN identifies the business entity to the IRS and is what banks, payroll providers and payment processors ask for. The ITIN identifies you personally and is what your own tax return needs if you are not eligible for a Social Security Number. They are not alternatives to each other. They sit at two different levels: one on the company, one on the human being who owns it.

Can I use an ITIN as a business tax ID?

No. An ITIN is issued to an individual for federal tax reporting only, and it cannot be used to identify a business entity. You cannot open a business bank account, hire employees, or file an entity return with an ITIN in place of an EIN. If a form asks for the employer identification number of your company, the ITIN is the wrong number and the filing will be rejected or misapplied.

Do sole proprietors need an ITIN or EIN?

A sole proprietor with no employees can technically report business income on a personal return using their personal taxpayer identification number, which for a non-resident means an ITIN. An EIN is still recommended. It costs nothing, takes minutes to obtain, and lets you keep your personal tax number off contracts, W-9 requests and vendor paperwork. Once you hire an employee or elect corporate taxation, the EIN stops being optional.

Does my business need an ITIN to open a bank account?

The business account is opened on the EIN, not an ITIN. US banks will ask for the EIN, the formation documents and the operating agreement. They will also run identity verification on you as the beneficial owner, and many will accept a passport for that step rather than a tax number. An ITIN becomes relevant when you want a personal US bank account alongside the business one.

How long does it take to get an ITIN for my business income?

The IRS issues an ITIN in roughly 6 to 11 weeks, depending on the season. Off-season, from May to December, applications typically clear in 6 to 8 weeks. During filing season, January through April, expect 9 to 11 weeks. An EIN is far faster: an online Form SS-4 application returns the number in minutes. Plan the ITIN around your filing deadline, because it is the long pole in the timeline.

Can I form a US LLC without an ITIN?

Yes. Forming an LLC is a state-level filing and no state asks for a federal tax identification number to register the company. You can form the entity, obtain its EIN, and start operating before you hold an ITIN. The ITIN requirement arrives later, when a personal US tax return is due on the income the company passed through to you.

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