Entrepreneurs who plan to do business in the US or want to register on platforms such as Amazon, Stripe, Payoneer, etc. are confronted with two basic tax identification numbers: EIN and ITIN.
In this article, we take a detailed look at what both tricks do, when they are needed and how to apply for them.
EIN (Employer Identification Number) - Company Tax Identification Number
The EIN is your company's identification number within the US tax system.
is issued by the US Internal Revenue Service(IRS) and used in all official company transactions.
When is it needed?
- Opening a bank account in the USA
- When registering on platforms such as Amazon, Stripe, Cenoa, Payoneer
- When filing a tax return in the US
- If you will employ employees
How to get it?
- Application is made to the IRS by completing Form SS-4
- For non-US citizens, the application is usually submitted by fax or mail
- The application period usually ranges from a few days to a few weeks
ITIN (Individual Taxpayer Identification Number) - Individual Taxpayer Identification Number
ITIN is a personal tax number issued to individuals who are required to file an individual tax return in the US but do not have an SSN (Social Security Number).
When is it needed?
- For foreign individuals earning income in the US
- For those who want to be exempt from 30% withholding tax on platforms such as Amazon, Stripe
- For foreigners who own property in the US and receive rental income
How to get it?
- To the IRS Form W-7 application is made by filling in
- Identity documents such as a passport and in some cases a tax declaration are required
- The application process can take several weeks
Differences between EIN and ITIN
| Feature | EIN (Company) | ITIN (Individual) |
| Area of Use | Company's tax, bank and platform records | Individual tax declaration, withholding tax exemption |
| Who Buys? | Authorized representative of the company | Company owner, individual or partner |
| Necessary Condition | Company establishment and activities | Tax benefits on individual income or platforms |
| Granting Institution | IRS (Internal Revenue Service) | IRS |
Summary Information on EIN and ITIN
- If you are forming an LLC in the US, obtaining an EIN number is mandatory
- If you are an individual earning income and you are not a US citizen, you may also need to apply for an ITIN
- EIN and ITIN are not interchangeable; they are used separately for different purposes
Obtaining the correct tax numbers when doing business in the US not only ensures that you fulfill your legal obligations, but also prevents problems you may encounter on the platforms.
Get Professional Support
As Export Partners Turkey:
- US LLC formation
- EIN application
- ITIN application
- Registration processes to platforms such as Amazon, Stripe, Payoneer
we offer end-to-end consultancy services.
You can contact us for detailed information and application.
