EIN & ITIN

What are the 5 Differences Between EIN and ITIN?

In order to run a legal business in the US or to ensure legal taxation and fulfillment of all commercial commitments for your existing business, you must obey some legal rules.

If you are not a US citizen; in this case, you should be familiar with the two important concepts of taxation system, EIN and ITIN, and learn which one is right for you. In this way, you can perform more reliable business partnerships and business activities. In order to learn the difference between EIN and ITIN and to conduct commercial activities in the USA in this direction, we have discussed in detail the difference between these two concepts. You need to know and act on what concept is addressed to you, corporate or personal. Here is the difference between EIN and ITIN with all aspects.

EIN: #

An EIN or Employer Identification Number is issued by the Internal Revenue Service (IRS) to business entities. It is also known as a Federal Tax ID Number or TIN (Tax Identification Number). An EIN is to a business what a Social Security Number (SSN) is to an individual. It basically identifies your business or company to the IRS.

Even though EIN stands for Employer Identification Number, it does not mean that you have to have employees.

EINs are used for: #

  • Opening business checking, savings, or investment accounts.
  • Filing taxes.
  • Handling employee payroll (if applicable).
  • Obtaining business lines of credit or business loans.
  • Obtaining credit cards in the name of the LLC.
  • Applying for business licenses.

all differences between ein and itin #

ITIN: #

An ITIN is an Individual Taxpayer Identification Number. It is a nine-digit number that allows you to file an income tax return even if you do not have a Social Security Number. An ITIN is only for tax purposes, therefore, they cannot be used for identification purposes.

ITINs are used for: #

  • Filing a tax return.
  • Correcting a tax return filed in the past with a false social security number.
  • Filing a late tax return after the deadline for filing has passed.
  • Reporting money that you earned while using a security number not given to you by the government.
  • Opening a bank account.
  • Claiming dependent exemptions and the child tax credit on your return for your children.