Table of Contents

Introduction

It has been a very exciting journey for the entrepreneurs all around the world to start their own business in the United States. Be it a SaaS startup, eCommerce business, consultancy firm or even a tech company, getting to know about the US Tax ID numbers is one of the important requirements that needs to be fulfilled.

One of the first things that an international entrepreneur would want to know is the difference between ITIN vs EIN 2026 – Which one do I need? Well, though both of these numbers are issued by the IRS, they have nothing to do with each other. Selecting either one of them incorrectly can result in a delayed process of business incorporation, opening a bank account, filing the taxes, and making payments.

Here is your guide on ITIN vs EIN 2026 – Differences and when to use what.

What Is an ITIN?

Individual Taxpayer Identification Number (ITIN) is a tax-processing number assigned by the Internal Revenue Service to individuals who do not qualify for a US Social Security Number (SSN).

The primary purpose of this identification number is to serve individuals who have US tax responsibilities but do not qualify for SSN.

Some common cases include:

Non-resident business owner
Investors from abroad
Freelancers from other countries
Visa holder dependents
Individuals receiving US-source income

It should be noted that an ITIN does not give permission for working in the USA.

What Is an EIN?

An Employer Identification Number (EIN) is a tax identification number issued to organizations by the IRS.

It is basically a Social Security Number for your business.

An EIN is necessary for organizations to be able to do the following:

File their federal taxes
Hire employees
Open US business bank accounts
Get payment processors such as Stripe and PayPal
Create business credit
Register for state taxes when applicable

Most foreign founders creating a US LLC will need an EIN. If you’re just getting started, our guide on How to Register a US LLC and Earn Globally in 2026 walks through the full formation process.

ITIN vs EIN 2026: Key Differences

Feature	ITIN	EIN
Issued To	Individual	Business Entity
Purpose	Individual tax filing	Business identification
Issued By	IRS	IRS
Used for Business Banking	Usually No	Yes
Required for Tax Filing	Individuals	Businesses
Can Hire Employees	No	Yes
Linked to Personal Identity	Yes	No

The biggest difference is simple:

An ITIN identifies a person, while an EIN identifies a business.

Do International Founders Need an ITIN?

Not necessarily. There is a common misconception among international entrepreneurs that one has to get an ITIN before establishing their company in the US.

Actually, a foreign entrepreneur may:

Create a US LLC
Get an EIN
Open a business bank account
Work with Stripe
Work with Mercury
Work with Wise Business
without obtaining an ITIN beforehand. For a full walkthrough of this process, see Can I Open a Virtual Business in the US while Living Abroad

An ITIN is typically required if one needs to file US taxes themselves.

When Do You Need an EIN?

If you are forming a business in the USA, you would most likely require an EIN. This decision often starts with picking the right state to incorporate in, as covered in our guide on Best US States to Register a Company as a Non-Resident in 2026

Some of the situations are:

Forming an LLC
Forming a Corporation
Hiring Employees
Submitting Tax Returns
Banking for the business
Business Loans
US suppliers

The EIN will act as the main identifying number of your business entity.

Can You Open a US Bank Account with Only an EIN?

In most cases, yes. Most fintech banks nowadays accept international founders who want to open US business bank accounts with the help of:

Company registration papers
EIN letter confirmation
Passport
Business proof
Some banks can ask for additional verifications based on where you live.

Regular banks usually have more stringent requirements and will ask you to come in person. For the full step-by-step process, check out How to Open a US Bank Account for Your LLC from Outside USA – Complete 2026 Guide

Do You Need an ITIN to Get an EIN?

This statement is absolutely incorrect.

The IRS enables the foreign entity to get an EIN without the following documents being available for the owner of the company:

Social Security Number
ITIN
US residency

It just requires some other procedure for application.

ITIN vs EIN 2026 for LLC Owners

What if you’re a foreign individual owning a US LLC? Well, these will be your general guidelines.

You Must Get an EIN if:

You own an LLC
You run a business
You bill customers
You accept payments
You file your business taxes

You Should Get an ITIN if:

You personally file your US taxes
You earn income in the US
You must report your personal tax obligations

Foreign individuals owning a single member LLC usually start out with only an EIN.

How to Apply for an EIN in 2026

EIN Application Process is quite simple.

It requires:

Establishing your U.S.-based company.
Having all the necessary documents.
Filling out the IRS Form SS-4.
Submitting the application using the right IRS procedure.
Getting your EIN certificate.

Registered agents and incorporation agencies can also help with EIN application.

How to Apply for an ITIN

An ITIN is typically harder to obtain.

Some things you may need include:

Form W-7
Passport
ID Verification
Tax documentation

The IRS looks at your application before giving you the ITIN.

Common Mistakes International Founders Make

Here are some of the most frequent mistakes:

Delaying Formation until You Have an ITIN

Many entrepreneurs delay too much. In most cases, all that is needed is the EIN number.

Using Your Social Security Number Instead of EIN

The company needs to use its EIN number wherever applicable.

Failing to File Tax Returns on Time

LLCs owned by foreign nationals may be required to file annually with the IRS even without any tax liability.

Picking the Incorrect Legal Entity

The choice between LLC, Corp, or other legal entities affects your tax liabilities.

Which One Do You Actually Need?

Here is a basic rule.

The chances are that you will require an EIN if you intend to:

Set up a business in the US
Open a business account in a bank
Receive money
Pay taxes for your business

It is possible that you will need an ITIN yourself.

For many entrepreneurs who come from outside the US, getting an EIN comes first.

Benefits of Getting an EIN Early

An EIN can enable you to:

Get a US business bank account quicker
Boost your business’s credibility
Register for payment gateways
Establish a business credit history
Comply with the IRS requirements
Differentiate personal and business finances

Conclusion

Knowledge about ITIN vs EIN 2026 is important for an international entrepreneur who wishes to set up his/her business in the US. It is true that both the numbers are issued by the IRS, but their purpose is quite different. Whereas an EIN is required for your business operations, opening your bank account in the US, and also meeting your US federal tax requirements, an ITIN is required only if you have US tax filing obligations.

Therefore, knowing what number you require is important.

Ready to Start Your US Business?

From establishing a US LLC to applying for an EIN or handling taxes as an international entrepreneur, we at E-Startup can make everything easy for you. We will help our clients all over the world set up their US companies in no time, so that they can concentrate on growing their business.

FAQs

Can I get EIN without SSN?

Yes, international entrepreneurs can apply for EIN even without a Social Security Number.

Is ITIN necessary for foreign LLCs?

No, many foreign LLCs do not need an ITIN unless there is a requirement to file taxes in USA.

Can I apply ITIN instead of EIN?

No, ITIN is assigned to an individual, whereas EIN is assigned to the business.

Which document is more important to open a business bank account in the USA?

The EIN is the main requirement to open a business bank account in the USA.

Can foreigners form a US LLC?

Yes, non-residents of the USA can form US LLCs in most states.