EIN vs TIN vs ITIN: Which Tax ID Does Your Non-Resident LLC Actually Need?

When a non-resident forms a US LLC, they face a bureaucratic nightmare of acronyms: EIN, TIN, ITIN, SSN. Which tax ID do you actually need? The answer depends on your specific situation, but the IRS adds layers of complexity to every regulation. This guide cuts through the confusion.

What is a TIN? The Umbrella Term

To simplify, start with TIN. TIN stands for Taxpayer Identification Number — the umbrella term for every numeric ID the IRS uses to track people and businesses. Everything falls under this definition. Some examples are:

• SSN (Social Security Number) — used for individuals who are US citizens or permanent residents
• EIN (Employer Identification Number) — used for businesses and entities such as partnerships and trusts
• ITIN (Individual Taxpayer Identification Number) — used for foreign nationals with a US tax obligation who do not have an SSN

Every EIN is a TIN, but not every TIN is an EIN. The IRS makes a distinction on how they are used based on the situation.

EIN: The Business ID (What You Actually Need for an LLC)

An EIN is a nine-digit number that the IRS assigns to a business for tax filing and reporting purposes. It is the business entity's tax ID and not your personal tax ID.

The most important aspect for non-residents: having an SSN is not a prerequisite for obtaining an EIN. If you are forming a US LLC from outside the US and do not have a Social Security Number or an ITIN, the IRS will require your LLC to have an EIN. You will need to fill out Form SS-4. For the line requesting your SSN or ITIN, you will write "Foreign" and you will be done.

Obtaining an EIN through the international process by phone, fax or mail, can take non-residents 1-2 weeks and will be free of charge.

ITIN: Individual Tax ID (When You Need One as a Non-Resident)

An ITIN is issued to individuals who have a US tax filing requirement but are ineligible for an SSN, which are usually nonresident aliens who have US-source income.

In regard to non-resident LLC owners, the ITIN situation arises when you personally have US-sourced taxable income that must be reported, for example, from rental income, from freelance work or consulting. This situation does not apply to the LLC, for which an EIN has been obtained.

In order to be eligible for an ITIN, you must have a documented federal tax purpose, which means you are filing a 1040-NR or you are claiming a refund of withholding tax and you need a taxpayer ID. Merely forming a US LLC does not mean you will automatically be eligible for an ITIN, you must have personal US-sourced income.

EIN vs TIN vs ITIN: Which Do You Need? (Decision Tree)

Here's the simple version:

Special Case: Single-Member Foreign LLC and Form 5472

Many non-residents form single-member LLCs (you are the sole owner). This creates a tax classification question: is the LLC a corporation or a disregarded entity?

By default, a single-member LLC is a disregarded entity. That means the LLC's income is your personal income; you don't file separate corporate returns. But if you're a non-resident, you still need to file Form 5472 (Information Return of a 25% Foreign-Owned US Corporation or Partnership) with your annual 1040-NR, even for a disregarded LLC. That form reports your ownership stake and the LLC's financial activity to the IRS.

You'll need the LLC's EIN to file Form 5472. The LLC itself doesn't file taxes (as a disregarded entity), but the form documents your connection to it.

FAQ: Real Questions Non-Residents Ask

Do I need an ITIN if I have an EIN?
Not having an ITIN is fine if your LLC only does business and doesn't serve customers in a personal capacity. In that case, an EIN is all you need. You would file a 1040-NR with the LLC's EIN listed as the responsible party. The IRS has more info on this on their website.

How long does it take to get an EIN as a non-resident?
If you call during business hours, you can get an EIN the same day with the IRS office. Other methods like faxing or mailing can take 1-2 weeks. Of all the ways to get an EIN, the IRS methods are the slowest, but they are the only options available to non-residents without an SSN.

Can my LLC operate before I get an EIN?
In theory, no. An LLC needs a tax ID in order to hire employees and open a business bank account, and to file returns. There are rare exceptions to the second part. Some banks require an EIN in order to grant business status to the LLC.

What if I need a US bank account and don't have an EIN yet?
This happens a lot. Some non-residents are able to open a business bank account by providing their passport and LLC formation documents. Others wait to open their account until they get an EIN. Non-resident banking is complicated, but an EIN is required in order to do banking in the US.

Related Reading

• → How to get an EIN without an SSN or ITIN
• → Form 5472 for foreign-owned LLCs: what's still required
• → W-8BEN forms and non-resident tax filing