ITIN vs EIN: Which Do Non-Residents Actually Need? (2026)

When you start researching how to open a US business as a non-resident, you'll see "ITIN" and "EIN" thrown around as if they're related. They're not. They serve completely different purposes — and most non-residents only need one of the two.

This post is the 5-minute decision tree we wish someone had given us in 2022.

The 1-line difference

• EIN = tax ID for your business (the LLC)
• ITIN = tax ID for you personally, when you have US-source personal income

That's it. Different entities, different purposes.

When you need an EIN (almost always)

You need an EIN if you have a US LLC. Period. The EIN is what allows you to:

• Open a US business bank account (Mercury, Wise Business, Brex, regular US banks)
• Apply to Stripe, PayPal, Square, Lemon Squeezy as a US business
• File Form 5472 every year to avoid the $25,000 IRS penalty
• Issue 1099 forms to US contractors
• File business taxes (when required)

LLCora delivers your EIN in 48 hours via IRS Form SS-4 fax. No SSN required.

When you need an ITIN (rarely)

You need an ITIN ONLY if you personally have US-source income that would normally require a US tax return. Examples:

• You receive royalties from a US publisher (book, music, software licensing)
• You hold US dividend-paying stocks in your personal name (not in your LLC)
• You earn rental income from US real estate you personally own
• You're a partner in a US partnership and receive a K-1
• A US-based publisher or platform asks for a W-8BEN with an ITIN box

Most non-resident LLC owners do NOT have any of these situations. They sell digital services to international clients through their LLC, the LLC's income flows to them as a foreign distribution, and they pay taxes only in their home country.

When you might think you need an ITIN but don't

These are common false-positives:

1. "Stripe asked for a tax ID." Give them your LLC's EIN, not an ITIN.
2. "My bank wants a TIN to open the account." Same — EIN.
3. "I want to claim a tax treaty benefit." You can do this with W-8BEN-E (the entity form, using your LLC's EIN), not W-8BEN (the individual form requiring ITIN).
4. "I need to file Form 5472." Form 5472 uses your EIN. The "Foreign Owner" section asks for your name and country, not an ITIN.

When you legitimately need an ITIN

The clearest case: you receive a 1042-S form from a US payer (royalties, dividends, real estate income) in your personal name. The payer's reporting requires you to have an ITIN so they can file correctly with the IRS.

Another case: you want to be the personal mortgage borrower on US real estate. Banks need a US tax ID for the mortgage paperwork.

If neither of these applies to you, skip the ITIN.

How to actually get an ITIN if you need one

ITIN applications use Form W-7 plus a notarized copy of your passport. You can either:

1. Mail Form W-7 + your passport (or notarized copy) to the IRS in Texas. Takes 4-7 months.
2. Use a Certifying Acceptance Agent (CAA) — they verify your passport in person so you don't have to mail the original. Faster (8-10 weeks).

LLCora's Premium plan ($499) includes a referral to our CAA partner if you need an ITIN. For 95% of customers we tell them they don't need it and they save the $499.

Don't fall for the ITIN upsell

Some "LLC formation" providers (looking at you, doola) bundle ITIN application as a $400-$700 upsell. They prey on the confusion between EIN and ITIN.

If you're being pitched ITIN as part of an LLC formation package and you don't have personal US-source income, you're being upsold something you'll never use.

Decision tree (memorize this)

Have a US LLC? → Get an EIN.

>

Also have personal US-source income (royalties, personally-held US stocks paying dividends, US rental real estate, K-1 from a US partnership)? → Also get an ITIN.

>

No personal US-source income? → You do not need an ITIN. Stop here.

That's it. 95% of non-residents end at "No, I do not need an ITIN."

Related

• LLC Glossary: EIN
• LLC Glossary: ITIN
• doola alternative (skip the ITIN upsell)
• Open Stripe with your Wyoming LLC
• Full FAQ

If you want LLCora to handle just the EIN (no ITIN upsell, no surprises), start with the Pro plan at $299.