If you’re a non-US resident looking to start a business in the United States, you’ve likely run into a wave of confusing acronyms: EIN, ITIN, and sometimes SSN. When looking into how to lawfully incorporate an LLC, open a U.S. bank account, or file taxes, these figures are often among the first challenges faced by foreign founders.
The problem is that foreign business owners have to follow a distinct process, whereas U.S. citizens are automatically assigned a Social Security Number (SSN). This is where the Individual Taxpayer Identification Number (ITIN) and the Employer Identification Number (EIN) are useful.
Both are nine-digit tax identification numbers that are issued by the IRS, but their functions are quite different:
Your company’s tax ID is the EIN.
If you are not eligible for an SSN, the ITIN serves as your individual tax identification number.
What Is an EIN?
An Employer Identification Number (EIN) is a nine-digit number issued by the U.S. Internal Revenue Service (IRS) to identify a business for tax purposes. Think of it as your company’s Social Security Number—it proves that your business exists in the eyes of the U.S. government and is authorized to operate.
For non-U.S. residents, the EIN is the single most important identifier you’ll need when forming an LLC or corporation. Without it, you won’t be able to:
- Register your company for tax purposes with the IRS.
- Open a U.S. business bank account (traditional banks and neobanks like Mercury, Relay, or Wise all require it).
- Apply for payment processors like Stripe, PayPal, or Shopify Payments.
- Hire employees or contractors and run payroll legally.
- File federal and state taxes tied to your LLC or corporation.
Why EIN Matters for Non-Residents
Even if you never set foot in the United States, the EIN is what gives your business the ability to function. For example, if you run an e-commerce brand targeting U.S. customers, Stripe and PayPal won’t even let you set up an account without it. The EIN is also a requirement if you want to sign contracts with U.S.-based companies or marketplaces.
How to Apply for an EIN
The IRS allows both residents and non-residents to apply. If you’re a foreign entrepreneur without a U.S. Social Security Number, you can still obtain an EIN using your business details. The process includes:
- Completing Form SS-4, Application for Employer Identification Number.
- Submit it to the IRS by fax or mail (online applications are limited to applicants with SSNs).
- Waiting for approval, which typically takes 2–5 weeks.
The good news? There’s no filing fee for the EIN, and once issued, it never expires.
What Is an ITIN?
An Individual Taxpayer Identification Number (ITIN) is a nine-digit number issued by the IRS to individuals who are not eligible for a Social Security Number (SSN) but still need to file or pay U.S. taxes.
While the EIN identifies your business, the ITIN identifies you as an individual for tax reporting purposes. It always begins with the number 9 (for example: 9XX-XX-XXXX) and looks similar to an SSN, but its use is strictly limited to tax processing.
When Do Non-Residents Need an ITIN?
Not every non-U.S. business owner needs an ITIN. You only need one if you have a personal tax filing obligation in the U.S. Some common cases include:
- You receive income from U.S. sources (e.g., royalties, real estate, dividends, or consulting).
- You are a non-resident LLC owner who must file a personal tax return in addition to your company’s filings.
- You want to claim tax treaty benefits between your country and the United States.
- A bank or financial institution requires it for account verification.
How to Apply for an ITIN
Applying for an ITIN is a more document-heavy process than applying for an EIN. It requires:
- Filling out IRS Form W-7.
- Providing proof of identity and foreign status, usually with a valid passport or national ID card.
- Submitting the form and documents to the IRS either:
- By mail,
- In person at an IRS Taxpayer Assistance Center, or
- Through an IRS-authorized Certifying Acceptance Agent (CAA) who can verify your documents.
The processing time for ITINs typically ranges from 7 to 11 weeks, though delays are common if documents are incomplete.
Why ITIN Matters
Without an ITIN, you may be unable to fulfill your personal U.S. tax obligations, which could lead to penalties or loss of tax treaty benefits. For non-resident entrepreneurs earning personal income from the U.S., the ITIN is what ensures you remain compliant.
EIN vs ITIN: Key Differences
Although both EIN and ITIN are tax identification numbers issued by the IRS, they serve very different purposes. The easiest way to understand them is this:
- EIN = your business’s ID
- ITIN = your personal ID (if you don’t qualify for an SSN)
Here’s a breakdown:
Do You Need Both?
- EIN is essential if you plan to run a U.S. LLC or corporation. You cannot open a business bank account or file company taxes without it.
- ITIN is conditional—you only need it if you personally have to file U.S. taxes (for example, to report U.S. income or claim treaty benefits).
For many non-U.S. founders, the EIN alone is enough to get started with their company. However, as your business activities expand, you may also need an ITIN for personal tax compliance.
Common Challenges and How to Solve Them
Even though the IRS makes EIN and ITIN applications sound straightforward, many non-U.S. founders run into unexpected roadblocks. Here are the most common issues—and how to handle them:
1. Delays with ITIN Applications
The ITIN process requires submitting original documents (like your passport) or certified copies. If anything is missing, unclear, or incorrectly filled, the IRS will reject the application, forcing you to start over.
Solution: Use a Certifying Acceptance Agent (CAA) who can verify your documents locally. This way, you don’t need to send originals abroad, and your application is less likely to be rejected.
2. Confusion About EIN Requirements
Many entrepreneurs believe you need a U.S. Social Security Number to get an EIN. This isn’t true—the IRS issues EINs to foreign founders without SSNs every day.
Solution: File Form SS-4 correctly, leaving the SSN/ITIN field blank or marked as “Foreign.” With the right preparation, you can get your EIN without U.S. residency.
3. Banking and Payment Processor Roadblocks
Even with an EIN, some traditional U.S. banks may ask for an SSN or ITIN when opening a business account. This creates extra friction for foreign entrepreneurs.
Solution: Choose fintech-friendly banks like Mercury, Relay, or Wise Business, which are designed for global founders. These typically accept EIN + passport verification.
4. IRS Backlog and Waiting Times
In recent years, processing times have stretched due to IRS backlogs. An EIN by mail or fax can take weeks, while ITINs often take months.
Solution: Apply early, keep copies of all documents, and if possible, work with professionals who can handle IRS follow-ups on your behalf.
How Neubase Helps
Handling U.S. paperwork from abroad can feel overwhelming. Forms, backlogs, and unclear IRS instructions often discourage non-U.S. founders from moving forward with their business plans. That’s exactly where Neubase steps in.
With Neubase, you don’t need to worry about filling out IRS forms or waiting on hold with U.S. tax offices for hours. We take care of the entire process from start to finish:
- EIN Setup: We secure your EIN remotely—even if you don’t have an SSN or ITIN. No faxes, no endless IRS calls.
- ITIN Support: If you’re required to file personal U.S. taxes, our team guides you through the ITIN application process and ensures your documents are filed correctly.
- LLC Formation & Compliance: From registering your company to setting up a U.S. address and annual filings, Neubase manages every step so your business stays compliant.
- Banking & Payments: We help you connect your EIN to U.S. banks and fintech platforms like Mercury, Stripe, or Wise, giving you the financial tools you need to operate globally.
- Ongoing Management: With our online dashboard, you can track your documents, bookkeeping, and compliance from anywhere in the world.
By centralizing these steps, we save you time, reduce the chance of mistakes, and give you the confidence to focus on what matters most—growing your U.S. business.
Conclusion
For non-U.S. entrepreneurs, understanding the difference between EIN and ITIN is essential to launching and scaling a U.S. business. Your EIN is basically your company’s tax ID. You’ll need it to open bank accounts, register your LLC, and work with clients in the U.S. You only need the ITIN if you want to file U.S. tax returns or claim treaty benefits for yourself.
Getting these numbers can seem tricky, especially from overseas—but with the right help, it’s pretty simple. Getting your EIN (and ITIN if you need it) will make sure your business is all set and ready to dive into the U.S. market.
Want to set up your U.S. LLC and grab your EIN/ITIN without any fuss?
Get started with Neubase today—we take care of the paperwork, banking setup, and ongoing compliance, so you can just focus on growing your business.
FAQs
- Can I get an EIN without an SSN or ITIN?
Yes. The IRS issues EINs to foreign entrepreneurs without SSNs or ITINs. You simply apply as a non-resident using your business details. - Do all non-U.S. residents need an ITIN?
No. You only need an ITIN if you personally have to file U.S. tax returns (for example, if you earn U.S. income or want to claim tax treaty benefits). For many LLC owners, an EIN alone is enough. - How long does it take to get an EIN or ITIN?
EINs are usually processed within 2–5 weeks when filed by fax or mail, while ITINs typically take 7–11 weeks. Neubase can streamline both processes and handle IRS follow-ups on your behalf.
