ITIN or EIN: which number does your US LLC need?

The question comes up with every company formation. One seller read that an ITIN was required, another that an EIN was enough, a third paid an agent for both. Two of them spent money for nothing.

The rule fits in one sentence. The EIN identifies a business to the IRS, the ITIN identifies an individual who must file a US return without being entitled to a social security number. They are two different things, and the vast majority of non-residents only need the first.

The EIN, your company's number

The EIN, for *employer identification number*, is the American equivalent of a company registration number. It is obtained with Form SS-4, it is free, and it requires no social security number: the relevant box accepts the word *foreign*. The full procedure is in our article on getting an EIN without an SSN.

This is the number your bank, Stripe, marketplaces and suppliers ask for. Without it your company exists legally but cannot collect a cent. It is therefore the first item to secure after incorporation, and the only one that actually blocks the launch.

The ITIN, a person's number

The ITIN, for *individual taxpayer identification number*, is for an individual who has a US filing obligation and cannot obtain a social security number. It is requested with Form W-7, together with a certified passport and, in most cases, the tax return that justifies the request.

That last point is the one guides forget. An ITIN is not requested as a precaution. The IRS issues it to allow a filing, not to sit in a folder. A request without a filing reason is rejected, and the passport travelled for nothing.

The test, in one question

Do you personally have to file a US return this year? If the answer is no, you do not need an ITIN. Your company, on the other hand, needs an EIN in every case.

When an ITIN does become necessary

The first case is the multi-member LLC. It is treated as a partnership, files Form 1065 and issues each partner a K-1. A foreign partner named on that document needs a US tax number, therefore an ITIN. This is one of the reasons adding a partner is never a small decision, as we explain in our article on single-member and multi-member LLCs.

The second is income effectively connected with a US trade or business. It requires the individual to file Form 1040-NR, therefore to hold an ITIN. The mechanism is described in our guide to non-resident taxation.

The third is claiming a tax treaty benefit to reduce withholding, on royalties for instance. Form W-8BEN then asks for a tax number, and the ITIN is the only one available to a foreign individual.

The most common case, and the simplest

An LLC owned by a single foreign person, with no US employee or office, is disregarded for tax purposes. It files Form 5472 each year together with a pro forma 1120. That filing identifies the owner by name, address and foreign tax number, not by an ITIN.

In other words, the freelancer, the online seller or the consultant who owns the company alone never had to request an ITIN. They need the EIN, the business address, the bank account, and nothing else.

What an ITIN does not do

It grants no right to stay in the country, it does not open a bank account on its own, it does not replace the EIN for Stripe or a marketplace, and it expires after three consecutive years without use.

Processing times, which often decide

An EIN takes a few business days by fax for a well prepared foreign application, sometimes longer depending on the IRS workload. An ITIN is counted in weeks, often two to three months once the file goes through the dedicated unit and the passport has to be certified.

Waiting for an ITIN you do not need therefore pushes your launch back by a quarter. That is the real cost of the confusion, far more than an agent's fee.

How LLC Place handles it

We file Form SS-4 with the IRS and hand you your company's EIN, without ever asking you for a US personal number. It is the one item that gates the launch, and it is included in the package.

We also tell you when an ITIN is genuinely required, which is rare, rather than selling you a three month process you do not need. The rest follows in the same file: articles, business address and annual filing.

Frequently asked questions

Can I get an EIN with no SSN and no ITIN?

Yes. Form SS-4 explicitly covers the foreign applicant, and the personal number box is filled with the word *foreign*. This is the normal route for a non-resident, not a tolerance.

Will my US bank ask for an ITIN?

Business neobanks are satisfied with the EIN, the articles and your passport. A traditional branch bank may ask for more, which is one of the reasons we point to the options covered in our banking comparison.

I already have an ITIN, do I still need an EIN?

Yes, always. The two numbers are not interchangeable: one designates a person, the other a company. An LLC without an EIN can neither open an account nor collect payments.