Gokce Tandogdu
ITIN Specialist, itin.net
Yes, you can get an Employer Identification Number (EIN) using an Individual Taxpayer Identification Number (ITIN). The ITIN is issued by the IRS to individuals who need a U.S. taxpayer identification number but do not have and are not eligible to obtain a Social Security Number (SSN). The EIN, also known as a Federal Tax Identification Number, is issued by the IRS to business entities for tax administration purposes.
Many non-residents and foreign nationals use their ITIN to apply for an EIN when establishing a U.S. business presence, such as forming a U.S. LLC. This is a common and accepted process. You do not need an SSN to apply for an EIN, and an ITIN serves as a valid alternative identification number for this purpose. The process for applying for an EIN with an ITIN is largely the same as applying with an SSN, though there are specific considerations for non-residents. Understanding how these two identification numbers work together is key for any foreign national looking to conduct business in the United States.
Direct Answer: Yes, an ITIN Can Be Used to Obtain an EIN
The IRS permits individuals with an ITIN to apply for an EIN. This is a crucial step for non-residents who are forming a U.S. business entity, such as a U.S. LLC, and require an EIN for tax reporting and banking purposes. You can apply for an EIN either online, by mail, or by fax. The online application is the fastest method, but it requires you to have a physical address in the United States. For applicants without a U.S. address, mail or fax are the available options. When applying, you will need to provide specific information about yourself and your business, including your ITIN.
Who Needs an EIN with an ITIN?
Foreign nationals and non-residents typically need an EIN if they are establishing a U.S. business entity. This includes:
- Forming a U.S. LLC: If you form a U.S. LLC, even if you are not a U.S. resident, you will need an EIN for tax filing purposes, including filing Form 5472 (Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business). You can learn more about forming a U.S. LLC on our services page.
- Operating a Sole Proprietorship in the U.S.: If you are operating a business as a sole proprietor in the U.S. and have employees, or if you are subject to excise tax, you will need an EIN.
- Opening a U.S. Bank Account: Most U.S. banks require an EIN to open a business bank account. This is a common requirement for non-residents looking to establish a U.S. bank account for their business operations.
- Establishing a U.S. Trust or Estate: Certain trusts and estates also require an EIN.
In essence, if your business activity in the U.S. requires a separate identification number from your personal Social Security Number (or ITIN), you will likely need an EIN.
What Information is Required for an EIN Application with an ITIN?
To apply for an EIN, whether you are a U.S. resident or a foreign national using an ITIN, you will need to complete Form SS-4, Application for Employer Identification Number. The information required on Form SS-4 includes:
- Legal Name of the Entity: The official name of your business entity (e.g., your LLC name).
- Trade Name (if any): Any "doing business as" (DBA) name.
- Mailing Address: The address where the IRS can send correspondence. If you do not have a U.S. address, you can use a foreign address.
- Physical Location of the Entity: The actual physical location of your business in the U.S. (if applicable).
- Name and ITIN/SSN of Responsible Party: This is the individual who has ultimate authority and control over the entity. For non-residents applying with an ITIN, you will enter your ITIN here. The responsible party must be an individual, not another business entity.
- Type of Entity: Sole proprietor, partnership, corporation, LLC, etc.
- Reason for Applying: New business, hired employees, banking purposes, etc.
- Date Business Started: The date your business operations began or will begin.
- Principal Activity of the Business: A brief description of what your business does.
When filling out Form SS-4, ensure all information is accurate and matches your business registration documents. Any discrepancies can lead to delays or rejection of your application.
How to Apply for an EIN with an ITIN: Step-by-Step
There are three primary methods to apply for an EIN using an ITIN:
1. Online Application (for those with a U.S. Address)
If you have a designated U.S. mailing address (even if it's a virtual office or a mail forwarding service), you can apply online through the IRS website. This is the fastest method, often resulting in an EIN being issued immediately upon completion of the application.
- Go to the IRS EIN Online Application: Access the IRS's official EIN application portal.
- Complete the Application: Fill out the online form with the required information, including your ITIN as the responsible party's identification number.
- Receive Your EIN: If your application is approved, you will receive your EIN immediately.
Important Note: While the IRS website states that the online application is for U.S. residents, individuals with a valid U.S. mailing address (including a third-party mail service) have successfully used this method. If you do not have any form of U.S. address, this method may not be suitable.
2. Fax Application
This method is suitable for applicants who do not have a U.S. address and cannot apply online. It is generally slower than the online method.
- Download Form SS-4: Obtain the latest version of Form SS-4 from the IRS website.
- Complete Form SS-4: Fill out the form accurately. Ensure you clearly indicate your ITIN.
- Fax the Form: Fax the completed Form SS-4 to the IRS at the designated number for international applicants (typically 859-669-7440, but always verify on the IRS website for the most current number).
- Receive Your EIN: The IRS will process your application and mail your EIN confirmation letter (CP-575) to the address provided on your Form SS-4. This can take several weeks.
3. Mail Application
Similar to the fax method, the mail application is for those without a U.S. address. It is the slowest method.
- Download Form SS-4: Obtain the latest version of Form SS-4 from the IRS website.
- Complete Form SS-4: Fill out the form accurately, including your ITIN.
- Mail the Form: Mail the completed Form SS-4 to the IRS address for international applicants. This is typically the same address used for fax submissions (again, verify on the IRS website).
- Receive Your EIN: The IRS will process your application and mail your EIN confirmation letter (CP-575) to the address provided on your Form SS-4. This can take several weeks, often longer than the fax method.
Applying Through a Certified Acceptance Agent (CAA)
For those who find the direct application process daunting or lack a U.S. address, applying through a Certified Acceptance Agent, or CAA, is an option. A CAA is an individual or entity (like itin.net) authorized by the IRS to assist applicants in obtaining ITINs. While CAAs are primarily known for ITIN applications, some may offer assistance with EIN applications, particularly for their ITIN clients.
- Contact a CAA: Reach out to a CAA service that offers EIN application assistance.
- Provide Information: You will provide them with the necessary information, including your ITIN and business details.
- CAA Submission: The CAA will then submit the application to the IRS on your behalf.
This path can simplify the process, especially if you are already working with a CAA for your ITIN. itin.net assists clients in obtaining their ITINs, which can then be used to apply for an EIN.
Cost and Timeline for EIN Application with an ITIN
- Cost: Applying for an EIN directly from the IRS is free. There are no fees charged by the IRS for processing Form SS-4. If you use a third-party service or a CAA to assist with your application, they may charge a service fee for their assistance.
- Timeline:
- Online: If you have a U.S. address, you can receive your EIN immediately upon successful online application.
- Fax/Mail: For international applicants without a U.S. address, the processing time for faxed or mailed Form SS-4 can range from 4 to 10 weeks. This timeframe can vary depending on IRS workload and the accuracy of your submitted application. It is advisable to apply well in advance of any deadlines.
Common Mistakes When Applying for an EIN with an ITIN
- Incorrect Responsible Party Information: The responsible party must be an individual and their ITIN (or SSN) must be entered correctly. Using an entity's name or EIN as the responsible party is a common error.
- Incomplete or Inaccurate Form SS-4: Missing information or typos on Form SS-4 will cause delays. Double-check all details, especially legal entity names and addresses.
- Using a Non-U.S. Address for Online Application: The IRS online system is designed for those with a U.S. mailing address. Attempting to use a foreign address may lead to errors or prevent completion.
- Not Understanding Entity Types: Incorrectly identifying the business entity type (e.g., LLC vs. Corporation) can lead to application rejection.
- Delays in ITIN Application: If you do not yet have your ITIN, you must wait until you receive it before you can apply for an EIN. The process for obtaining an ITIN can take several weeks, so plan accordingly. You can learn more about the ITIN application process.
What Happens After You Get Your EIN?
Once you receive your EIN, you will need to use it for various business activities:
- Business Tax Filings: You will use your EIN to file U.S. federal tax returns for your business, such as Form 1040-NR (U.S. Nonresident Alien Income Tax Return) if you have U.S. sourced income, or Form 5472 for foreign-owned U.S. entities.
- Opening a Business Bank Account: Present your EIN confirmation letter to a U.S. bank to open a business checking or savings account. This is essential for separating business and personal finances.
- Obtaining Business Licenses and Permits: Some state and local licenses or permits may require an EIN.
- Hiring Employees: If you plan to hire employees in the U.S., you will need your EIN for payroll tax purposes.
It is critical to keep your EIN confirmation letter (CP-575) in a safe place, as it serves as proof of your business's tax identification number. If you lose it, you can request a letter of confirmation from the IRS by writing to them and providing your business name, EIN, and responsible party's name and ITIN/SSN.
Next Steps for Non-Residents Seeking a U.S. Business Presence
Obtaining an EIN with an ITIN is a significant step for non-residents looking to establish a U.S. business. The process, while straightforward, requires attention to detail. For many, the next logical steps after securing an EIN include:
- Forming a U.S. LLC: Setting up a legal entity provides liability protection and a formal structure for your U.S. business operations. Our U.S. LLC formation service can guide you through this.
- Opening a U.S. Business Bank Account: A dedicated business bank account is essential for managing finances, receiving payments, and establishing financial credibility in the U.S. We provide information on opening U.S. bank accounts, including options for non-residents.
Understanding the interplay between an ITIN, an EIN, and business formation is key to successfully operating a business in the United States as a foreign national. For personalized assistance with your ITIN application, you can explore the services offered by itin.net.
If you have complex tax situations or require specific advice tailored to your circumstances, consulting with a qualified U.S. tax professional or an attorney specializing in international business is recommended. You can also find more information on various tax topics in our blog or browse our other Q&A articles at /qa.