EIN vs. ITIN vs. SSN: What Non-Residents Need to Know

If you’re a foreign entrepreneur planning to expand your business in the US, you’ll quickly come across terms like EIN, ITIN, or SSN. Understanding these acronyms is key when forming a US company, opening a bank account, and filing taxes.

In this guide, we’ll break down what each term means, who needs them, and how non-residents can apply. By the end, you’ll know exactly which one applies to your situation and how to avoid the common mistakes that slow down many foreign founders.

What Do EIN, ITIN, and SSN Mean?

When it comes to US taxes and banking, three key identifiers consistently appear: EIN, ITIN, and SSN. While they might look similar on the surface, each serves a very different role. Let’s break them down.

EIN (Employer Identification Number)

Think of the EIN as a business ID number.
Issued by the IRS, it’s used to file taxes for a company, hire employees, and open US business bank accounts.
You don’t have to live in the US to get one. Many non-residents apply when forming an LLC or corporation.
Fun fact: many international founders search for how to get an EIN without an SSN or ITIN, because you don’t need a personal US tax ID to obtain one. The IRS provides alternative application methods for non-residents.

ITIN (Individual Taxpayer Identification Number)

The ITIN is for individuals, not businesses.
Issued by the IRS, it allows people who don’t qualify for an SSN to file a US tax return.
Common uses include:
- Reporting income from a US property.
- Filing as the owner of a single-member LLC.
- Claiming tax treaty benefits.
- Important: an ITIN is not a work permit. It’s strictly for tax reporting.

SSN (Social Security Number)

The SSN is a personal identification number used for US citizens, permanent residents, and non-citizens authorized to work.
Issued by the Social Security Administration (SSA), it’s required for employment, wage reporting, Social Security benefits, and even everyday financial activities, such as applying for credit.
If you’re a foreign entrepreneur abroad, you usually won’t need or qualify for an SSN.

Each has its purpose, and choosing the right one depends on your goals, whether you’re filing taxes personally, launching a business, or working in the US.

Who Needs an EIN, ITIN, or SSN?

Not every foreign entrepreneur or investor will need all three identification numbers. The right one for you depends on your situation, your business setup, and whether you’ll be working in the US personally. Here’s a breakdown of common scenarios for non-residents.

When You Need an EIN

Starting a US LLC or corporation: An EIN is required to file taxes, open a US bank account, or apply for payment processors like Stripe or PayPal.
Hiring employees in the US: You need an EIN to handle payroll taxes and employee reporting.
Opening a business account abroad linked to US operations: Even without US residency, an EIN makes your business official in the eyes of the IRS and banks.
Tip: If you ever misplace it, don’t panic. The IRS has procedures if you’ve lost your EIN, including calling their Business & Specialty Tax Line to request confirmation.

When You Need an ITIN

Filing a US tax return without SSN eligibility: If you own a US single-member LLC or earn US-source income but don’t qualify for an SSN, you’ll need an ITIN.
Claiming treaty benefits: Some non-residents use an ITIN to claim reduced withholding rates under tax treaties.
Receiving US income personally: For example, if you receive royalties, rental income, or other personal US-sourced payments, an ITIN helps you report that to the IRS.

When You Need an SSN

Working as an employee in the US: If you live and work in the US under DHS authorization, you’ll need an SSN for employment.
Accessing Social Security benefits or US financial services as a resident: The SSN acts as your universal identifier across government, tax, and financial systems.
Not typically required for entrepreneurs abroad: If you’re expanding into the US but not personally working there, an SSN usually doesn’t apply.

How to Apply

Now that you know the difference between EIN, ITIN, and SSN, the next step is figuring out how to apply for the one that fits your needs. Each process is different, but with the right forms and documents, non-residents can get them without too much hassle.

How to Apply for an EIN

Form to use: Form SS-4
Where to apply:
- US residents can apply online, but non-residents often need to apply by phone, fax, or mail.
- The IRS has a dedicated phone line for international applicants.
What you’ll need: Business formation documents (LLC, corporation), responsible party details, and mailing address.
Tip: If you’re forming a business from abroad, this should usually be one of your very first steps. Don’t forget to do your research on knowing how long it takes to get an EIN so you can plan and schedule your next steps accordingly.

How to Apply for an ITIN

Form to use: Form W-7.
What to include: Proof of identity (passport is most common), plus your US tax return unless you qualify for an exception.
Where to apply:
- By mail to the IRS with original/certified documents.
- Through an IRS-approved Certifying Acceptance Agent (CAA).
- In person at IRS offices (less common for non-residents abroad).
Processing tip: An ITIN application often takes several weeks, so plan if you need one for a tax filing deadline.

How to Apply for an SSN

Where to apply: At your local Social Security Administration (SSA) office.
Who qualifies: US citizens, permanent residents, and non-citizens with valid DHS work authorization.
What you’ll need: Immigration documents (visa, work authorization papers), proof of identity, and sometimes proof of age.
Important note: If you’re abroad and not authorized to work in the US, you generally won’t qualify for an SSN. Stick with EIN or ITIN instead.

Key Differences at a Glance

At this point, you know the basics of EIN, ITIN, and SSN. But it helps to see how they compare side by side. A different agency issues each one, serves a different purpose, and applies to different situations.

If you’re checking on your ITIN status, comparing it to an EIN or SSN can also clarify whether you’ve applied for the right number in the first place. Here’s a table to summarize the difference between EIN, ITIN, and SSN.

Feature	EIN	ITIN	SSN
Who it’s for	Businesses (LLC, corporation, partnership, some sole props)	Individuals who must file US taxes but aren’t eligible for an SSN	US citizens, residents, and work-authorized non-citizens
Issued by	IRS	IRS	Social Security Administration (SSA)
Purpose	Business tax ID, payroll, and banking	Personal tax ID for reporting income	Personal ID for employment, benefits, credit, and taxes
Work authorization?	No	No	Yes (if authorized by DHS)
Common use for non-residents	Starting a US business or opening a business bank account	Filing a US tax return or claiming treaty benefits	Working legally inside the US
Application form	SS-4	W-7	SSA SS-5
Processing time	Can be same-day by phone (international unit)	Several weeks (depending on IRS backlog)	Varies; requires an in-person SSA visit in most cases

Key Takeaways

EIN is about the business. It’s the number you’ll need to run a US company or hire employees.
ITIN is about personal taxes only. It doesn’t give you work rights, but it allows you to stay compliant if you owe or report US taxes.
SSN is about living and working in the US. It’s not available to most entrepreneurs abroad, but essential if you’re moving to the US with work authorization.

Common Mistakes to Avoid

When it comes to EINs, ITINs, and SSNs, many non-residents trip up by getting them mixed up. In reality, each one serves a unique purpose. Avoiding the following mistakes will save you time, money, and a lot of frustration.

Applying for the Wrong Number

Some people try to get an SSN when they’re not eligible, or assume that an ITIN is enough to run a US business. In truth:

EIN = for businesses.
ITIN = for individuals who must file US taxes but can’t get an SSN.
SSN = only for US citizens, residents, and work-authorized individuals.

Thinking ITIN = Work Authorization

An ITIN only helps with tax reporting. It does not give you permission to work in the US or act as a substitute for an SSN. Confusing this can lead to compliance issues or rejected applications.

Forgetting to File With the Application

When applying for an ITIN, you usually must attach a US tax return unless you qualify for a specific exception. Skipping this step is one of the most common reasons for ITIN application rejections.

Not Keeping Records Updated

If the responsible party for your EIN changes, or if your mailing address is different from the one you originally submitted, the IRS requires you to update it. Overlooking this detail can lead to missed notices or delayed correspondence.

Waiting Too Long to Apply

Don’t wait until tax season or banking deadlines to get your numbers. For example, if you plan to form a US business, apply for an EIN as soon as possible so you can open a bank account and connect with payment processors without delays.

Final Thoughts

For non-residents looking to do business in the US, knowing the difference between EIN vs. ITIN, vs. SSN is like choosing the right path for your goals. An EIN makes your company official, an ITIN keeps you compliant with US taxes when you can’t get an SSN, and an SSN is essential only if you’re authorized to work in the US

By understanding which number applies to your situation, you can avoid delays, reduce mistakes, and keep your expansion plans on track.

Need an EIN for your US business? Check the latest processing times and get guidance at EINwaittime.com.

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