If you're self-employed, running a side business, or thinking about forming an LLC, you've probably come across both an ITIN and an EIN. Both come from the IRS, both look like Social Security Numbers, and both are used for taxes — but they serve completely different purposes.
One-sentence summary
Your ITIN identifies you as a person for tax purposes. Your EIN identifies your business. If you're a person with U.S. income but no SSN, you need an ITIN. If you have a business, LLC, or hire anyone, you also need an EIN. Many self-employed ITIN holders end up needing both.
What Each Number Is
ITIN — Individual Taxpayer Identification Number
The IRS issues an ITIN to individuals who have a U.S. tax filing obligation but are not eligible for a Social Security Number. This includes undocumented immigrants, nonresident aliens with U.S. income, and foreign nationals who earn money in the U.S. An ITIN identifies you, the person, for tax purposes. You use it to file your personal tax return (Form 1040 or 1040-NR), and banks and credit card companies use it to identify you as an account holder.
EIN — Employer Identification Number
The IRS issues an EIN to business entities — LLCs, corporations, sole proprietorships with employees, partnerships, and others. It is sometimes called a "Federal Tax ID Number" or "business tax ID." An EIN identifies your business for tax purposes the same way an SSN identifies a person. Even if you have no employees, you may need one to open a business bank account, hire contractors, or file certain business tax forms.
Side-by-Side Comparison
| Category | ITIN | EIN |
|---|---|---|
| Issued by | IRS | IRS |
| Identifies | A person (individual taxpayer) | A business entity |
| Who applies | Individuals without SSN eligibility | Any business: LLC, sole prop, corporation |
| Format | 9XX-XX-XXXX (starts with 9) | XX-XXXXXXX (two-digit prefix) |
| Application form | IRS Form W-7 | IRS Form SS-4 |
| Cost | Free | Free |
| How fast | 7–11 weeks (mail) | Instant online |
| Expires? | Yes — if unused 3+ years | No — permanent once issued |
| File personal taxes | Yes | No |
| Open business bank account | Partial — as owner ID only | Yes — required for the business |
| Hire employees | No | Yes — required |
| Can apply using the other | N/A (requires identity docs) | Yes — ITIN accepted on SS-4 |
Which One Do You Need?
- You have U.S. income but no SSN (employee, freelancer, gig worker) You need an ITIN. Use it to file your tax return each year. You do not need an EIN unless you're running a separate business.
- You're a freelancer or independent contractor with no formal business You need an ITIN (to file your personal taxes and receive 1099 forms). Getting an EIN is optional but recommended — it lets you give clients your EIN instead of your ITIN on W-9 forms, which keeps your personal tax number more private.
- You formed an LLC or other business entity You need both. Your ITIN identifies you as the owner/member. Your EIN identifies the LLC itself. You'll need the EIN to open a business bank account, file business taxes, and pay any employees or contractors.
- You hire employees (even just one person) You are required to have an EIN. Sole proprietors who hire employees must get an EIN and use it to report payroll taxes.
- You want to open a business bank account You need both — your ITIN to identify yourself as the owner, and an EIN for the account to be in the business's name. See the full business bank account guide.
How to Get an EIN With Your ITIN
Getting an EIN is free and faster than getting an ITIN. Here's how:
- Go to irs.gov and search "EIN online application" or go directly to the EIN Assistant tool
- Select your business type — sole proprietorship, LLC, corporation, etc.
- Enter your ITIN in the field that asks for the responsible party's SSN or ITIN
- Complete the form with your name, business name (if any), U.S. address, and reason for applying
- Submit — your EIN is issued immediately at the end of the session
- Save your confirmation (CP 575) — this is your official EIN letter. Banks will ask for it
One EIN per business
Each business entity gets one EIN. If you have multiple businesses (or form a second LLC later), each one gets its own EIN. You only need one ITIN — it stays with you as an individual regardless of how many businesses you have.
Using an EIN for Privacy
One practical reason many self-employed ITIN holders get an EIN even as a sole proprietor: privacy on W-9 forms. When a client or company pays you more than $600 in a year, they'll ask you to fill out a W-9 to issue a 1099. The W-9 asks for your tax ID number. As a sole proprietor, you can enter either your ITIN or your EIN — and using your EIN keeps your personal ITIN off paperwork that circulates to multiple parties.