EIN vs. ITIN vs. SSN: Differences and Which One You Need

When you start doing business with the United States from another country, three acronyms come at you almost simultaneously: EIN, ITIN, and SSN. All three have nine digits, and all three appear on tax forms, so it’s normal to think they’re more or less the same. They aren’t, and confusing them is one of the most common mistakes I see when someone fills out their first form. Let me explain how I look at it.

The easiest way to understand it

Imagine a file with two folders: one contains your company, and the other contains your personal information.

• EIN (Employer Identification Number): this is your company’s number with the IRS, the United States federal tax authority. Even though it says "employer," you don’t need to have employees to need one.
• ITIN (Individual Taxpayer Identification Number): this is your personal number when you have something to file or handle with the IRS and cannot get an SSN. The IRS also issues it.
• SSN (Social Security Number): this is your Social Security number. It is issued by the Social Security Administration (SSA), not the IRS.

Having one does not give you the others. Your LLC’s EIN is not your personal identification number, and your ITIN is not your company’s tax number.

EIN: your company’s number

If you create an LLC (Limited Liability Company) in the United States, you will typically need an EIN for its tax matters, to open accounts, and to file information returns. Keep this in mind: creating the LLC and getting the EIN are two separate steps. The company is formed with a state, such as Wyoming, and the EIN is requested from the IRS.

The EIN is free. However, the IRS online application is not available if your principal place of business is outside the United States; in that case, the IRS requires you to apply by phone, fax, or mail. I explain the full process in what an EIN is and how to apply for one from outside the United States.

And so no one misleads you: an EIN does not guarantee you a bank account or payment processor, does not allow you to work or live in the United States, and does not replace your personal number when a form asks for it.

ITIN: your number when you cannot get an SSN

The IRS states it clearly: you need an ITIN if you have a federal tax purpose and are not eligible for an SSN. You apply using Form W-7, and it is only used for federal tax purposes.

It is also clear about what an ITIN does not do: it does not give you Social Security benefits, give you or change your immigration status, authorize you to work in the United States, or serve as identification outside the tax system. It can also expire if you stop using it, in which case you would have to renew it.

Here is something that confuses many people: having an LLC does not mean you need an ITIN. You need one if you, as an individual, have a federal tax obligation or process that requires it. I explain it step by step in our practical ITIN guide.

SSN: the Social Security number

The SSA assigns an SSN for free to U.S. citizens and some foreign nationals: mainly those authorized to work in the United States and, in limited cases, those with a valid nonwork reason. You apply using Form SS-5.

If you live outside the United States and are not authorized to work there, an SSN is most likely not an option for you. That is precisely why the ITIN exists. And conversely, if you can get an SSN, you should not apply for an ITIN.

When you will use more than one

It is completely normal to have two numbers in the same file:

• Your LLC uses its EIN for its filings and information returns, such as Form 5472 for a foreign-owned LLC.
• You use your ITIN or SSN when the matter is personal, such as your own tax return or a form that asks for the beneficiary’s number.
• Your clients and platforms may ask for one or the other depending on who receives the payment. If you do not know which form to provide, review W-8BEN, W-8BEN-E, or W-9.

The most common mistake is entering the individual’s number where the company’s number belongs, or vice versa. Before filling out any form, I ask myself just one question: does this income or obligation belong to the company, or does it belong to me? That answers half the question. What applies in your country of residence must be reviewed separately; it does not depend on these numbers.

If you would like us to guide you, we can help with forming and maintaining your LLC, applying for an EIN, and organizing your documents in our Vault: you can view our plans or, if you need an ITIN or another filing, our services. We do not provide legal or tax advice, nor can we guarantee approvals from banks, payment processors, or the IRS, so each case should be validated with a professional.