EIN vs ITIN: Which One Does a Foreign Owner Need?
TL;DR
EIN = the business’s tax ID. ITIN = an individual’s tax ID. A foreign-owned LLC always ends up needing an EIN (banking, Amazon, Form 5472). The owner personally needs an ITIN only in specific cases — mainly filing a 1040-NR — and many owners of simple or dormant LLCs never need one at all. Neither requires the other.
The side-by-side
| EIN | ITIN | |
|---|---|---|
| Identifies | A business entity | An individual (not SSN-eligible) |
| Format’s job | Bank accounts, payment platforms, business filings | Personal tax returns, treaty claims |
| Needed for Form 5472? | Yes — the LLC files under its EIN | No |
| Needed for a 1040-NR? | No | Yes, if you don’t have an SSN |
| Requires the other first? | No | No |
| Typical foreign owner | Always gets one | Only if a personal filing arises |
The order of operations for a new foreign-owned LLC
- Form the LLC (state level).
- Get the EIN — no SSN or ITIN required; the application lists a foreign responsible party.
- Open banking / connect platforms using the EIN.
- File Form 5472 annually under the EIN — even with no income.
- Only if a personal U.S. return becomes due (for example an ECI conclusion leads to a 1040-NR — see the ECI question) does the ITIN enter the picture.
Notice the ITIN appears at step 5, not step 1. Getting them in the wrong order — or waiting on an ITIN you don’t need — is the most common self-inflicted delay we see.
Myths that cost people months
- “I need an ITIN before I can start.” No — formation, EIN, banking, and Form 5472 all proceed without one.
- “The EIN is my personal tax number.” No — it belongs to the LLC. Don’t put an EIN where a personal ID is asked for, or vice versa.
- “An ITIN makes me a U.S. taxpayer automatically.” An ITIN is an identifier, not a status change; obligations come from your income and activity, not from holding the number.
- “W-8BEN needs an ITIN.” Frequently not — a foreign TIN often suffices on withholding certificates; check the form’s own instructions for your case.
Where this leaves you
For most readers: get the EIN now ($129, or $49 bundled with a first Form 5472), file the 5472 annually, and leave the ITIN question until a personal filing actually requires it — at which point it can be handled as part of that filing.
This article is general information, not tax or legal advice. Confirm the rules that apply to your specific situation before acting.
File it the right way
Laramie Ledger Tax handles foreign-owned LLC filings at flat published prices, prepared and signed by a licensed U.S. tax preparer.
Get a filing quote