EIN and ITIN are both nine-digit numbers issued by the IRS, so they are easy to confuse. But they serve very different purposes. Here is a simple breakdown.
What Is an EIN?
An Employer Identification Number (EIN) identifies a business — an LLC, corporation, partnership, trust, estate, nonprofit, or sole proprietor with employees. Businesses use it to open bank accounts, file business tax returns, hire staff, and apply for business licenses.
What Is an ITIN?
An Individual Taxpayer Identification Number (ITIN) identifies a person who has a U.S. tax filing requirement but is not eligible for a Social Security Number. It is used on personal tax returns.
Key Differences
- Who it’s for: EIN = business. ITIN = individual.
- How to apply: EIN = Form SS-4. ITIN = Form W-7.
- Employment: An ITIN does not authorize work in the United States.
- Speed: An EIN can often be issued the same day by phone or online (when eligible). ITIN applications usually take several weeks.
Do I Need an ITIN Before I Can Get an EIN?
No. If the responsible party for your business doesn’t have and isn’t eligible for an SSN or ITIN, the IRS instructions for Form SS-4 allow you to write “Foreign” on line 7b. You can get your business EIN first and deal with an ITIN later only if you personally need to file a U.S. tax return.
Can I Use My ITIN Instead of an EIN for My Business?
If you are a sole proprietor with no employees, you may be able to use your own taxpayer ID for some purposes. But LLCs and corporations, and any business opening a U.S. business bank account, will almost always need an EIN.
Get Help With Your EIN
EinFilingTax prepares and files your EIN application for you, reviews it for errors before it reaches the IRS, and re-files for free if it is rejected. Start your EIN application →
EinFilingTax is a private third-party service and is not affiliated with the IRS. You can apply for an EIN for free at IRS.gov. This article is general information, not legal or tax advice.
