Updated May 2026
ITIN vs EIN: 9 Key Differences Explained (2026)
An ITIN (Individual Taxpayer Identification Number) is a 9-digit personal tax ID formatted as 9XX-XX-XXXX, issued by the IRS under IRC Section 6109 to individuals who cannot get an SSN. An EIN (Employer Identification Number) is a 9-digit business tax ID formatted as XX-XXXXXXX, issued via Form SS-4. The IRS charges $0 for both. An ITIN identifies a person for tax filing. An EIN identifies a business entity. Many non-US entrepreneurs need both: an ITIN for personal taxes and an EIN for their US LLC or corporation.
What Is an ITIN and Who Needs One?
An ITIN is a 9-digit tax processing number issued by the IRS to individuals who have US tax obligations but cannot get a Social Security Number. The IRS created the ITIN program in 1996. As of 2026, the IRS has issued ITINs to applicants from 150+ countries. You apply using IRS Form W-7 with supporting identity documents.
ITIN Format and Structure
ITINs follow the format 9XX-XX-XXXX and always start with the digit 9. The middle two digits range from 50-65, 70-88, 90-92, or 94-99. ITINs with middle digits 70-88 have already expired under the IRS rolling schedule. The number serves only for federal tax purposes per IRC Section 6109.
Common ITIN Use Cases
- Filing Form 1040-NR as a non-resident alien
- Claiming tax treaty benefits (67+ treaty countries)
- Completing W-8BEN forms for US income withholding
- Being listed as a dependent or spouse on a US tax return
- Opening a US bank account as an individual
- Earning freelance income from US sources
What Is an EIN and Who Needs One?
An EIN is a 9-digit number assigned by the IRS to business entities operating in the United States. You apply using Form SS-4. The IRS issues EINs immediately through its online application (if you have an SSN or ITIN) or in 4-5 weeks by mail.
EIN Format and Structure
EINs use the format XX-XXXXXXX with a dash after the first 2 digits. Unlike ITINs and SSNs, EINs do not follow the XXX-XX-XXXX pattern. EINs never expire once issued, even if the business closes or changes ownership.
Who Needs an EIN
- LLCs, corporations, and partnerships formed in the US
- Businesses that hire employees
- Businesses opening US bank accounts
- Non-profits, trusts, and estates
- Foreign-owned LLCs filing Form 5472 + pro forma 1120
- Sole proprietors separating personal and business taxes
How Does an ITIN Compare to an EIN? Full Comparison Table
An ITIN and EIN differ across 9 categories. This table shows every difference between the two tax IDs as of May 2026.
| Feature | ITIN | EIN |
|---|---|---|
| Purpose | Personal tax identification | Business tax identification |
| Who needs it | Individuals without an SSN who have US tax obligations | LLCs, corporations, partnerships, non-profits, trusts |
| Format | 9XX-XX-XXXX (starts with 9) | XX-XXXXXXX (2+7 format) |
| Application form | Form W-7 | Form SS-4 |
| Issued by | IRS (ITIN Operation, Austin TX) | IRS (online or by mail) |
| IRS fee | $0 | $0 |
| Processing time | 6-11 weeks (mail) | Immediate (online) or 4-5 weeks (mail) |
| Expiration | Expires after 3 years of non-use on tax returns | Never expires |
| Legal authority | IRC Section 6109, IRS Pub 1915 | IRC Section 6109, Form SS-4 instructions |
Do You Need an ITIN, an EIN, or Both?
78% of non-US entrepreneurs who form a US LLC need both an ITIN and an EIN. Here is a decision guide based on your situation.
You need only an ITIN if...
- You earn freelance income from US clients but do not own a business entity
- You are a spouse or dependent claimed on a US tax return
- You need to file Form 1040-NR for US-source investment income
- A US company requires your tax ID on a W-8BEN form
- You want to claim benefits under 1 of 67+ US tax treaty countries
You need only an EIN if...
- You are a US citizen or green card holder forming a business
- You already have an SSN and are starting an LLC or corporation
- Your business needs to hire W-2 employees in the US
- You are forming a non-profit, trust, or estate
You need both an ITIN and an EIN if...
- You are a non-US resident forming a US LLC or corporation
- You need to file both personal (Form 1040-NR) and business (Form 5472 + 1120) returns
- You sell on Amazon through a US LLC as a foreign national
- You receive PayPal or Stripe payments through a US business entity
What Is the Step-by-Step Process to Get Both an ITIN and EIN?
Getting both numbers takes 6-12 weeks total. You must get the ITIN first, then use it to apply for the EIN online for immediate issuance.
- Apply for an ITIN. Submit Form W-7 with your identity documents and a federal tax return (Form 1040-NR). The IRS charges $0. Processing takes 6-11 weeks.
- Receive your ITIN. The IRS mails a CP565 notice with your assigned ITIN to the address on your Form W-7.
- Apply for an EIN online. Go to irs.gov and complete the online EIN application using your ITIN as the responsible party. The EIN is issued in the same session.
- File Form 5472. If you own a foreign single-member LLC, file Form 5472 with a pro forma Form 1120 by the April deadline using your EIN.
Alternative: Get an EIN Without an ITIN
If you need an EIN before your ITIN arrives, submit Form SS-4 by mail or fax with "Foreign" in the SSN/ITIN field. Processing takes 4-5 weeks by mail. You lose the convenience of immediate online issuance, but the EIN is still valid.
What Is the Difference Between an ITIN, SSN, and EIN?
All 3 are 9-digit tax identification numbers issued by US government agencies. Each serves a distinct population and purpose.
| Feature | ITIN | SSN | EIN |
|---|---|---|---|
| Issued to | Individuals without SSN eligibility | US citizens, permanent residents, authorized workers | Business entities |
| Issuing agency | IRS | Social Security Administration (Form SS-5) | IRS (Form SS-4) |
| Format | 9XX-XX-XXXX | XXX-XX-XXXX | XX-XXXXXXX |
| Work authorization | No | Yes | N/A (business only) |
| Expiration | 3 years non-use | Never | Never |
An ITIN and SSN are mutually exclusive. You hold one or the other, never both at the same time. For a detailed breakdown, see our ITIN vs SSN comparison. To learn what an ITIN is, read our full guide.
When Does an ITIN or EIN Expire?
ITINs expire under 2 conditions. EINs never expire.
ITIN Expiration Rules
- Unused for 3 consecutive tax years: ITIN expires automatically
- Middle digits 70-88: already expired under IRS rolling schedule
- Renewal requires Form W-7 with "Renew" checked and current identity documents
- Expired ITINs can be renewed or reactivated
EIN Rules
An EIN never expires. Once the IRS assigns it, the number stays active permanently. Closing your business does not cancel the EIN. The IRS retains the number on file indefinitely.
How Much Does an ITIN Cost vs an EIN?
The IRS charges $0 for both an ITIN and an EIN. Professional service costs differ because ITIN applications are more complex.
| Cost Category | ITIN | EIN |
|---|---|---|
| IRS fee | $0 | $0 |
| DIY cost | Postage only ($5-15) | $0 (online application) |
| itin.so | $297 (7-10 days prep) | N/A |
| itin.so | $297 (2-3 days prep) | N/A |
For a full breakdown of ITIN costs, see our ITIN cost guide. Professional services are worth the investment because ITIN rejections add 4-8 weeks per correction cycle.
ITIN vs EIN: Frequently Asked Questions
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