EIN vs ITIN: Which One Does a Foreign Owner Need?
TL;DR
EIN = the business’s tax ID. ITIN = an individual’s tax ID. A foreign-owned LLC always ends up needing an EIN (banking, Amazon, Form 5472). The owner personally needs an ITIN only in specific cases — mainly filing a 1040-NR — and many owners of simple or dormant LLCs never need one at all. When one is genuinely needed, the W-7 guide covers the application. Neither requires the other.
EIN vs ITIN: what does each one do?
| EIN | ITIN | |
|---|---|---|
| Identifies | A business entity | An individual (not SSN-eligible) |
| Format’s job | Bank accounts, payment platforms, business filings | Personal tax returns, treaty claims |
| Needed for Form 5472? | Yes — the LLC files under its EIN | No |
| Needed for a 1040-NR? | No | Yes, if you don’t have an SSN |
| Requires the other first? | No | No |
| Typical foreign owner | Always gets one | Only if a personal filing arises |
Which number does a new foreign-owned LLC get first?
- Form the LLC (state level).
- Get the EIN — no SSN or ITIN required; the application lists a foreign responsible party.
- Open banking / connect platforms using the EIN.
- File Form 5472 annually under the EIN — even with no income.
- Only if a personal U.S. return becomes due (for example an ECI conclusion leads to a 1040-NR — see the ECI question) does the ITIN enter the picture.
Notice the ITIN appears at step 5, not step 1. Getting them in the wrong order — or waiting on an ITIN you don’t need — is the most common self-inflicted delay we see.
Myths that cost people months
- “I need an ITIN before I can start.” No — formation, EIN, banking, and Form 5472 all proceed without one.
- “The EIN is my personal tax number.” No — it belongs to the LLC. Don’t put an EIN where a personal ID is asked for, or vice versa.
- “An ITIN makes me a U.S. taxpayer automatically.” An ITIN is an identifier, not a status change; obligations come from your income and activity, not from holding the number.
- “W-8BEN needs an ITIN.” Frequently not — a foreign TIN often suffices on withholding certificates; check the form’s own instructions for your case.
Where this leaves you
For most readers: get the EIN now ($129, or $49 bundled with a first Form 5472), file the 5472 annually, and leave the ITIN question until a personal filing actually requires it — at which point it can be handled as part of that filing.
Official references: IRS — About Form SS-4 (EIN) · IRS — Individual Taxpayer Identification Number.
This article is general information, not tax or legal advice. Confirm the rules that apply to your specific situation before acting.
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