EIN vs. ITIN: which number does a non-U.S. founder need?

Two numbers, two different jobs

An Employer Identification Number, or EIN, identifies a business or other entity for federal tax administration. An Individual Taxpayer Identification Number, or ITIN, is issued to an individual who needs a U.S. taxpayer identification number for a federal tax purpose and is not eligible for a Social Security number.

Those are different questions. A company can need an EIN while its owner has no current reason to apply for an ITIN. Conversely, an individual’s personal tax filing can require an ITIN even when that individual has no LLC. Neither number is a business licence, a visa, or a promise that a bank will open an account.

What if the responsible party has no SSN or ITIN?

The IRS’s online EIN application has eligibility restrictions, including a valid taxpayer identification number for the responsible party. A founder who cannot use that online route should check the applicable phone, fax or mail procedure instead of entering a borrowed number.

The Form SS-4 instructions, lines 7a–7b, specifically address a responsible party who does not have, and is ineligible to obtain, an SSN or ITIN. They permit “foreign” or “N/A” in that situation. This is a conditional instruction, not permission to omit an identifier simply because applying for one is inconvenient. Identify the real responsible party and follow the current instructions.

A practical example

Consider a Pakistan-based designer forming a single-member U.S. LLC. Before purchasing an “EIN plus ITIN package,” she separates the decisions:

1. Does the entity need its own EIN for its filings or banking arrangements?
2. Who actually controls the entity and should be identified as its responsible party?
3. Which EIN application route fits the business location and responsible party’s circumstances?
4. Does she personally have a federal tax filing, treaty, withholding or other qualifying tax purpose that requires an ITIN?

The answer to question four cannot be established merely by pointing to the LLC’s formation certificate. If an ITIN is needed, the Form W-7 application, identity documents and any required return or exception evidence must be considered separately.

The EIN itself is free

The IRS does not charge a fee to issue an EIN. A preparer can charge for application assistance, but that is the preparer’s fee. A quote should make that distinction clear. Ask what it includes: preparation, submission, follow-up, and delivery of the IRS confirmation are separate pieces of work.

Keep the completed application, submission evidence and IRS assignment notice in the business’s permanent records. Check the legal name and mailing address before submitting: correcting avoidable errors later can interrupt bank onboarding or tax correspondence.

Before sending any application

• Confirm the entity’s exact legal name, formation date, ownership and principal business location.
• Check whether an EIN has already been assigned; avoid creating a duplicate application to solve a missing-letter problem.
• Determine the actual tax purpose before starting an ITIN application.
• Obtain bank or platform document requirements directly; their onboarding decision is separate from IRS issuance.
• Use a secure document-sharing arrangement for passports and tax identifiers. Do not paste them into a public comment or general website enquiry.

A useful adviser explains why a number is needed before selling the application service.