ITIN vs EIN for Your LLC: What Non-Resident Owners Actually Need

What Is the Core Difference Between an ITIN and an EIN?

For the deep comparison, see ITIN vs EIN.

Do Non-Resident LLC Owners Need Both an ITIN and an EIN?

In most cases, yes. The EIN handles the LLC's business obligations: opening Mercury/Relay accounts, processing Stripe payments, filing Form 1065 (multi-member LLC) or Form 1120 (C-Corp election), issuing 1099s. The ITIN handles the owner's personal obligations: filing Form 1040-NR to report US-source income, claiming tax-treaty benefits, and avoiding 30% withholding on royalties or partnership distributions.

See the ITIN for LLC owners guide for the full setup playbook.

How Do You Apply for an EIN as a Non-Resident LLC Owner?

1. Complete Form SS-4. List the responsible party (the LLC owner) and the LLC's information.
2. If the responsible party has no SSN or ITIN, write "Foreign" in line 7b.
3. Fax the form to the IRS at (855) 641-6935. Mail also works but is slower.
4. Wait 4-6 weeks (fax) or 7-9 weeks (mail) for the IRS to assign the EIN.
5. Use the EIN confirmation letter (CP575) to open bank accounts and file initial state reports.

How Do You Apply for an ITIN as an LLC Owner?

1. Form the LLC and obtain the EIN first (provides reason code h on Form W-7).
2. Complete Form W-7 with reason code a, b, or h depending on tax treaty and US-source income.
3. Gather passport plus secondary identity documents.
4. Submit through a Certifying Acceptance Agent (CAA) to avoid mailing the passport.
5. Receive the CP565 ITIN assignment letter within 7 days (with itin-number.com) or 7-11 weeks (IRS direct mail).

Which Number Should LLC Owners Apply For First?

EIN first if banking is the priority. Many non-resident owners form the LLC, file SS-4, get the EIN, and open Mercury or Relay within the first 6-8 weeks. The ITIN can follow when the first personal tax return becomes due. If both are urgent, run them in parallel: SS-4 by fax (no ITIN required) and W-7 through a CAA simultaneously.

What Common Mistakes Trip Up LLC Owners on ITIN and EIN?

• Using EIN where ITIN is required (personal Form 1040-NR, treaty claims).
• Using ITIN where EIN is required (business banking, payroll, 1099 issuing).
• Listing the LLC instead of the human as the responsible party on Form SS-4.
• Filing W-7 without a tax return or accepted exception code.
• Failing to update the IRS when the responsible party changes.