Two different tax IDs. One for your business, one for you personally. Understanding which you need — and when — can save you months of unnecessary paperwork.
An EIN (Employer Identification Number) is a federal tax ID assigned to a business entity by the IRS. It identifies your LLC or corporation in the U.S. tax system. Every U.S. business that needs to file tax returns, open a business bank account, or receive payments that trigger tax reporting needs an EIN.
EINs are assigned regardless of the owner's citizenship or residency status. A foreign-owned Wyoming LLC gets an EIN the same way a U.S.-owned LLC does — the process is just slower for non-residents (see our EIN article).
The EIN is the only tax ID your business needs. It does not matter whether you have an SSN or ITIN — your business's EIN is the identifier used for all business tax filings, bank accounts, and payment processors.
An ITIN (Individual Taxpayer Identification Number) is a nine-digit tax ID assigned by the IRS to individuals who need to file U.S. taxes but are not eligible for a Social Security Number (SSN). It is a personal identifier, not a business one.
ITINs were created for:
An ITIN always begins with the number 9 and has a specific range in the 4th and 5th digits (e.g., 9XX-7X-XXXX). They expire after three years if not used on a tax return.
Critical distinction: An ITIN is only used for personal (individual) U.S. tax filings. It is never used in place of an EIN for business purposes.
1. You are filing a personal U.S. tax return
If you have U.S.-source personal income that requires you to file a personal U.S. tax return (Form 1040-NR for non-resident aliens), you need an ITIN. This happens if:
2. You need to be on a U.S. payroll
If your U.S. entity will pay you wages as an employee (putting yourself on payroll), and you cannot get an SSN, you need an ITIN to process that payroll and receive a W-2.
3. Certain personal financial accounts
Some personal financial products — not business accounts — may require an ITIN or SSN for account opening. This is rare for business banking (which uses the EIN) but can come up for personal accounts at U.S.-based financial institutions.
4. You are a spouse or dependent on someone else's U.S. return
If your spouse is filing a U.S. tax return and you are listed as a dependent or filing jointly, you may need an ITIN.
This is the section most articles get wrong, or omit entirely.
You do NOT need an ITIN to:
The common misconception:
Many founders hear "you need a tax ID to do business in the U.S." and assume this means they need both an EIN and an ITIN. This is incorrect. The EIN is the tax ID your business needs. The ITIN is only relevant for your personal U.S. tax obligations.
A foreign-owned Wyoming LLC that earns revenue from non-U.S. clients, has no U.S. employees, and is owned by a non-resident founder can operate indefinitely on just the EIN. The owner has no personal U.S. tax filing obligation (though the LLC still needs to file Form 5472 — see that article for details).
If you've determined you actually need an ITIN, the process involves:
Processing time is typically 7–11 weeks. The IRS will return your passport after processing.
The passport requirement is the main friction point. You must submit your original passport (or a certified copy from the issuing government — not a notary) to the IRS. Most people are understandably reluctant to mail their passport internationally. Using a Certifying Acceptance Agent (CAA) allows you to have your documents verified in person without mailing them, but CAAs are not available in all countries.
GovAxis handles ITIN applications on the Premium tier, including guidance on whether a CAA is available in your country and how to navigate the document certification requirement.
"I need an ITIN to open a Mercury account."
False. Mercury, Relay, and Wise Business all use your LLC's EIN for business account opening. They may ask for your personal passport for identity verification, but they do not require an ITIN.
"My accountant says I need an ITIN."
If an accountant says this, ask them specifically why — what U.S. tax filing will you be making that requires a personal tax ID? If the answer is "for the LLC's bank account" or "for Stripe," they are mistaken. If the answer is "you will be filing a 1040-NR because of U.S.-source income," that is a legitimate reason.
"Getting an ITIN will make me a U.S. tax resident."
False. Having an ITIN does not make you a U.S. tax resident and does not trigger U.S. personal tax obligations beyond those that already exist. The ITIN is just a processing ID — it does not determine your tax status.
"I need an ITIN because I'm an owner of a U.S. company."
Owning a U.S. LLC does not automatically create a personal U.S. tax filing obligation. The obligation depends on whether you have U.S.-effectively-connected income or certain types of U.S.-source income — not simply on whether you own a U.S. entity.
Bottom line: Most international founders operating a U.S. LLC do not need an ITIN. You need an EIN for your business — that's it. The ITIN only becomes relevant if you have personal U.S. tax filing obligations, need to be on a U.S. payroll, or have specific personal financial products that require it. When in doubt, ask a CPA with international tax experience — not a formation service.
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