What Is the Difference Between an EIN and an ITIN?
An EIN and an ITIN are both tax identification numbers issued by the Internal Revenue Service, but they serve different purposes. An Employer Identification Number (EIN) identifies a business or other organization, while an Individual Taxpayer Identification Number (ITIN) helps certain people who are not eligible for a Social Security number meet U.S. tax requirements. Knowing which number applies can prevent delays with tax filings, hiring, and financial paperwork.
What Is an EIN?
An Employer Identification Number is a nine-digit number the IRS assigns to identify a business or other entity for federal tax purposes. It is usually written in the format XX-XXXXXXX. The number is associated with the organization, not with an individual owner’s personal tax identity.
Businesses commonly use an EIN when filing employment, excise, or business income tax returns; reporting wages; opening a business bank account; and completing certain licensing or financial forms. An organization may need an EIN even if it has no employees, depending on its structure and tax responsibilities.
Who may need an EIN?
An EIN is generally required for businesses that have employees, operate as partnerships or corporations, or meet other IRS filing and tax obligations. Certain trusts, estates, nonprofits, and other organizations also use EINs. A sole proprietor without employees may not need one for federal tax reporting, but may request one for business banking or other practical reasons.
Requirements depend on the entity’s structure and activities. For example, a single-member limited liability company (LLC) that is treated as a disregarded entity for federal income tax purposes may not need a separate EIN solely for income tax reporting. It may still need one if it hires employees, has certain excise tax responsibilities, or elects a different tax classification. State rules and bank policies can also affect what documentation is requested.
What Is an ITIN?
An Individual Taxpayer Identification Number is a nine-digit tax processing number issued by the IRS to an individual who needs a U.S. taxpayer identification number but is not eligible to receive a Social Security number. It is written in the same general format as an SSN and begins with the number 9.
ITINs are used for federal tax purposes, such as filing a tax return or being listed on a return when required. They are available to people with a federal tax filing or reporting need who cannot obtain an SSN. Examples can include some nonresident aliens, certain resident aliens, and qualifying dependents or spouses. Eligibility depends on the person’s circumstances and IRS rules.
An ITIN does not authorize a person to work in the United States, establish eligibility for Social Security benefits, or change a person’s immigration status. It is a tax processing number, not an employment authorization or general identity document.
EIN vs. ITIN: The Main Differences
The simplest distinction is that an EIN identifies an entity, while an ITIN identifies an individual for federal tax processing. They are not interchangeable, even though both have nine digits and are issued by the IRS.
| Feature | EIN | ITIN |
|---|---|---|
| Identifies | A business, organization, or other entity | An individual who needs a tax number but is not eligible for an SSN |
| Issued by | Internal Revenue Service | Internal Revenue Service |
| Typical format | XX-XXXXXXX | 9XX-XX-XXXX |
| Common uses | Business tax filings, payroll reporting, and entity records | Individual federal tax returns and related tax processing |
| Work authorization | Does not authorize an individual to work | Does not authorize an individual to work |
| Application method | IRS Form SS-4 or an eligible online application | IRS Form W-7, generally with a tax return or an approved exception |
Neither number replaces a Social Security number when an individual is eligible for an SSN. If a person is eligible for an SSN, the IRS generally directs that person to apply for one through the Social Security Administration rather than request an ITIN.
Can a Person Have Both an EIN and an ITIN?
Yes. A person can have an ITIN for individual tax purposes and also obtain an EIN for a business or organization they own or operate. Each number serves a separate role. For instance, an individual may use an ITIN on a personal federal income tax return and the business’s EIN on the business’s payroll or entity tax filings.
Having an EIN does not give a business owner an ITIN, and an ITIN does not automatically provide an EIN for a business. The IRS issues each number under its own application process and eligibility rules. Records should clearly distinguish the owner’s individual tax number from the entity’s EIN.
How to Apply for an EIN
Businesses and other entities can apply for an EIN directly through the IRS. The application is free. An eligible applicant can use the IRS online EIN application, which issues the number after a successful submission. The online system is available only to applicants who meet the IRS eligibility conditions, including rules about the principal business location and the person submitting the application.
Applicants who cannot use the online system can generally submit Form SS-4 by fax or mail. International applicants who cannot use the online application may apply by telephone using the IRS’s procedures for international applicants. The responsible party—usually the individual who controls or manages the entity—must be identified on the application. The IRS provides current instructions and contact details on its EIN webpage.
Before applying, the entity should be legally formed if required by state law. The application asks for information such as the entity’s legal name, mailing address, type, reason for applying, and expected employee details. An EIN is generally assigned to an entity only once; if the confirmation notice is lost, the IRS can help the authorized person recover the existing number.
There is no IRS fee for an EIN. Third-party websites may charge for preparing or submitting an application, but they are not required to obtain the number. The IRS warns applicants to use its official website to avoid unnecessary fees or misleading services.
How to Apply for an ITIN
An individual generally applies for an ITIN by submitting Form W-7 to the IRS. The application normally must include a federal income tax return, unless the applicant qualifies for an exception. Applicants also need to provide documentation proving identity and foreign status, following the instructions for the specific situation.
Common submission options include mailing the application and original identification documents or certified copies to the IRS, working with an IRS-authorized Certifying Acceptance Agent, or making an appointment at an IRS Taxpayer Assistance Center that offers document review. A Certifying Acceptance Agent may be able to review documents and certify certain identity records, which can help applicants avoid mailing original passports. Available services and appointment requirements should be checked before submitting an application.
The IRS does not charge an application fee for an ITIN. Processing times can vary, especially during peak tax season or when documents are missing. Applicants should follow the Form W-7 instructions carefully and avoid sending original documents unless the chosen submission method requires them.
Common Uses and Important Limits
What an EIN can do
- Identify an entity on federal tax forms: Businesses use an EIN for applicable business returns and tax accounts.
- Support payroll reporting: Employers use it when reporting employment taxes and wages.
- Help with business administration: Banks, vendors, and government agencies may ask for an EIN when setting up an entity’s records.
An EIN does not determine whether a business is legally formed, establish a particular tax classification, or grant permission to operate. State formation, licensing, and tax registration requirements are separate.
What an ITIN can do
- Allow eligible individuals to meet federal tax filing requirements: An ITIN can be used where the IRS requires an individual tax identification number and the person cannot obtain an SSN.
- Identify certain people on tax returns: A qualifying spouse or dependent may need an ITIN for a return or tax-related claim, subject to current eligibility rules.
- Support tax administration: The number helps the IRS process tax returns and payments associated with the individual.
An ITIN alone does not establish eligibility for a tax credit, deduction, or dependent claim. Each tax benefit has its own requirements, and some benefits require a valid SSN. An ITIN also should not be presented as proof of legal status or work eligibility.
EIN, ITIN, and SSN: How They Compare
A Social Security number (SSN) is issued by the Social Security Administration to eligible individuals. It is used for Social Security program administration and is also commonly used for federal tax reporting. An ITIN is issued by the IRS for tax processing when an individual is not eligible for an SSN. An EIN, by contrast, is for a business or other entity.
When an individual can obtain an SSN, the SSN generally serves as that person’s taxpayer identification number. When the individual is not eligible for an SSN but has a qualifying tax need, an ITIN may be appropriate. A business that needs an entity identifier may need an EIN regardless of whether its owner has an SSN or ITIN.
Keeping the Numbers Accurate and Secure
Tax identification numbers should be shared only when a legitimate tax, banking, employment, or legal process requires them. Businesses should store EIN confirmation notices with formation and tax records. Individuals should keep ITIN notices and copies of relevant tax filings in a secure location, rather than carrying sensitive documents unnecessarily.
ITINs can expire under IRS rules. In general, an ITIN that has not been included on a federal tax return at least once in the last three consecutive tax years expires. Some older ITINs can also require renewal based on IRS expiration rules. A person should check the IRS ITIN webpage and current Form W-7 instructions to determine whether renewal is needed before filing.
An EIN generally remains associated with the entity, but changes in ownership, organization, or tax structure can affect whether the entity needs a new number. Not every change requires a replacement EIN. The IRS explains which events require a new EIN, and the entity should check those rules before applying again.
Quick Decision Guide
- Choose an EIN when a business or organization needs its own federal tax identification number.
- Consider an ITIN when an individual has a federal tax need, is not eligible for an SSN, and meets IRS requirements.
- Apply for an SSN instead of an ITIN when the individual is eligible for one.
- Use both when appropriate: An owner may have an individual tax number and a separate EIN for the business.
For complex situations—such as foreign ownership, multiple business entities, dependents, or uncertain filing obligations—IRS instructions or advice from a qualified tax professional can help identify the correct number and application route.
Official IRS Resources
For current requirements and application instructions, consult the IRS Employer ID Numbers page, IRS Form W-7 information, and the IRS ITIN page. These official resources explain eligibility, forms, processing procedures, and current expiration or renewal rules.