Do I Need an ITIN, an EIN, or Both?

If you're a foreign individual who owns a U.S. business, you'll generally need both an EIN for the business and an ITIN for each foreign owner who isn't eligible for a Social Security Number.

EIN = the business. ITIN = the foreign individual owner.

For many foreign business owners, the process looks like: form the business, determine how it will be taxed, obtain the EIN, obtain ITINs for the foreign owners, then complete the required business and personal tax filings. Understanding the difference between these two numbers at the beginning can prevent a lot of confusion later.

This article focuses specifically on the EIN vs. ITIN question itself — for a full walkthrough of entity classification, EIN strategy, and why the tax structure matters before you apply, see "I'm Starting a U.S. Business. Now What?"

What Is an EIN?

An Employer Identification Number, or EIN, is a federal tax identification number issued by the IRS to businesses and other entities — despite the word Employer, a company may need one even without employees. Think of it as the tax ID belonging to the business itself, not to its owners personally.

What Is an ITIN?

An Individual Taxpayer Identification Number, or ITIN, is a nine-digit number issued to an individual who needs a U.S. taxpayer ID for federal tax purposes but isn't eligible for a Social Security Number. It belongs to the individual, not the company — for foreign business owners, it's needed so the owner can be properly identified on the U.S. tax filings connected to the business.

Can I Get an EIN Before I Have an ITIN?

Yes — and this is particularly important for foreign entrepreneurs. A foreign responsible party who doesn't yet have an SSN or ITIN can still apply for an EIN for the business. You cannot obtain your ITINs until you have an EIN for the entity.

For many foreign-owned businesses, the order is: form the business, determine the appropriate federal tax classification, apply for the EIN, apply for the foreign owners' ITINs, then complete the required U.S. tax filings.

Why Does the EIN Application Matter So Much?

The EIN application isn't something to complete quickly — it's where you tell the IRS what type of entity you created and how it'll be treated for federal tax purposes, and that classification has real, lasting consequences for both the business and its owners. This is covered in depth in "I'm Starting a U.S. Business. Now What?", including why guessing at a classification (or letting an online formation service pick one for you) can be an expensive mistake to change later.

If you're not sure how your U.S. business should be taxed, contact ITIN Abroad before applying for the EIN.

Why Do the Foreign Owners Need Their Own Tax Numbers?

The EIN belongs to the business — it doesn't replace the taxpayer identification number required for the individual owners. Depending on how the business is taxed, a foreign owner may need to file an individual U.S. tax return, be identified as an owner or shareholder on a business return, be reported as a partner in a partnership, report income that flows through from the business, or report compensation or distributions received from it.

Because those filings require the foreign individual to be properly identified, foreign owners who aren't eligible for Social Security Numbers need ITINs to fulfill their U.S. tax reporting obligations. Receiving the company's EIN is not the end of the U.S. tax setup process.

The EIN Often Becomes Part of the ITIN Application Itself

It's not just that the EIN and ITIN are two separate numbers that happen to exist around the same time — in many cases, the EIN is actually used as supporting documentation for the ITIN application. A partner applying under the partnership exception, for example, needs to submit a copy of the partnership or LLC agreement showing the business's EIN and confirming the applicant's ownership. In other cases, the EIN appears directly on the business tax return attached to the ITIN application.

That means the EIN and the ITIN(s) connected to a business aren't just conceptually related — they're actually linked in the IRS's own records. Once that link exists, the IRS expects to see consistent reporting at both levels: what the business reports under its EIN should line up with what each owner reports individually under their ITIN. A mismatch between the business return and an owner's personal filing is exactly the kind of inconsistency that makes IRS problems, since the two are no longer separate stories as far as the IRS is concerned — they're one connected picture.

What If There Are Multiple Foreign Owners?

An EIN belongs to the business, so the company generally has one. An ITIN belongs to an individual, so each foreign owner needs their own.

For example, a company with three foreign individual owners may have 1 EIN for the business and 3 separate ITINs for the owners. The exact returns and reporting requirements depend on how the entity is taxed, but every owner still needs to be properly identified within the U.S. tax system.

Do I Need a New ITIN for Every Business I Own?

No. An ITIN identifies you, not one particular company. If you already have a valid ITIN, forming another business doesn't require a different one — the new business may need its own EIN, but your individual taxpayer ID stays yours.

Do I Need a New EIN for Every Business?

Potentially. An EIN identifies a particular business or tax entity, and whether a new one is required depends on what was formed and what changed — a genuinely separate business entity may need a separate EIN, and changes in ownership or tax structure can also affect this. Don't assume one EIN can simply be reused for every business you create.

Does an ITIN Allow Me to Work in the United States?

No. An ITIN is a tax-processing number — it doesn't provide U.S. work authorization or immigration status. Owning a U.S. business and obtaining an ITIN for it doesn't give you permission to physically work in the United States. Tax law and immigration law are separate issues.

Do I Need an EIN If I Am a Sole Proprietor?

Possibly. A sole proprietor is an individual who owns an unincorporated business personally, and a single-member LLC that's disregarded for federal tax purposes may also be treated as a sole proprietorship. Whether an EIN is required depends on the business's specific circumstances and filing obligations — don't assume that having only one owner means you don't need one.

What Happens After I Get the EIN and ITIN?

Receiving the numbers doesn't complete your U.S. tax obligations — they simply allow the appropriate taxpayers to be identified. You still need to determine which federal and personal returns must be filed, whether foreign-ownership reporting or withholding applies, whether state returns are required, and how transactions between the owners and the business should be reported. The EIN and ITIN are the beginning of the compliance process, not the end. This is covered in full in "I'm Starting a U.S. Business. Now What?"

Records and Ongoing Costs

Two things are worth knowing before you get either number: foreign business owners often come from tax systems with lighter recordkeeping expectations than the U.S. requires, and ongoing compliance typically costs more than the initial formation and EIN/ITIN process combined. Both are covered in detail elsewhere — recordkeeping in "I'm Starting a U.S. Business. Now What?", and the full cost breakdown in "What Does It Really Cost to Keep a U.S. Business Compliant as a Foreign Owner?" — but the short version is: understand the commitment before you form a company you may need to maintain for years.

How ITIN Abroad Can Help

ITIN Abroad can help with more than the ITIN itself. Depending on your situation, we can help you understand how your proposed entity will be taxed, prepare and submit the EIN application, prepare ITIN applications for foreign individual owners, complete the required CAA certification, prepare the tax return associated with the ITIN application, and determine both the business's and the owners' ongoing U.S. filing requirements.

If you haven't yet applied for your EIN and aren't sure how your entity should be taxed, contact ITIN Abroad before submitting the application — this is one of the best opportunities to make sure the tax structure is understood before the business begins operating.

FAQ

Do I need an EIN or an ITIN to start a U.S. business?

For a foreign-owned U.S. business, you'll generally need an EIN for the business and ITINs for the foreign individual owners who aren't eligible for SSNs.

Can I get an EIN without already having an ITIN?

Yes. A foreign responsible party can apply for an EIN even without an SSN or ITIN yet.

Should I get the EIN or ITIN first? For many foreign-owned businesses, the EIN comes first, and the foreign owners then obtain their ITINs for the required U.S. tax filings.

If two foreign people own the business, can they share an ITIN? No. An ITIN identifies an individual — each foreign owner needs their own.

Can I use the company's EIN on my personal U.S. tax return instead of getting an ITIN? No. The company's EIN identifies the business; it doesn't replace the individual owner's taxpayer ID.

Does the IRS actually connect my EIN and ITIN, or are they just two separate numbers?

They're connected. The EIN is often used as part of the ITIN application itself — for example, in the partnership agreement submitted under the partnership exception, or on the business return attached to the application. Once that connection exists in the IRS's records, it expects the business's reporting under the EIN and each owner's reporting under their ITIN to be consistent with each other.

Does an ITIN give me permission to work in the United States?

No. An ITIN is for federal tax purposes and doesn't provide employment authorization.

Can ITIN Abroad obtain both numbers for me?

Yes. ITIN Abroad can assist with the EIN application for the business and ITIN applications for foreign individual owners, along with the associated U.S. tax filings.

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An EIN and an ITIN aren't competing choices — they identify two different taxpayers. The EIN identifies the business. The ITIN identifies the foreign individual owner for U.S. federal tax purposes when that person isn't eligible for an SSN. Getting those numbers in the right order, and understanding how the business will be taxed before you apply, is an important part of starting a U.S. business correctly.