ITIN explained
An ITIN is a tax ID for people who can't get an SSN.
It's the IRS number for individuals who have a US tax obligation but aren't eligible for a Social Security number β and it is often misunderstood.
a tax ID, not a work permitWhat an ITIN actually is.
An Individual Taxpayer Identification Number (ITIN) is a nine-digit tax processing number issued by the IRS to individuals who have a US tax filing or reporting requirement but are not eligible for a Social Security number. You apply using IRS Form W-7, and the IRS issues the number for tax purposes β nothing else.
The "nothing else" matters, because it is where people get burned. An ITIN does not authorize you to work in the US, does not confer immigration status, and is not a business identifier. It exists so that someone with a US tax obligation β a non-resident with certain income, or someone claiming a treaty benefit β has a number to put on a return.
Does a founder need one?
Not automatically. Forming a US company and getting an EIN for it does not, by itself, mean you personally need an ITIN. The company's number and your number are separate questions.
You may need an ITIN if you personally have a US filing or reporting obligation β for example, if your ownership of the company or your personal US income means you must file your own return, or if you are claiming benefits under a tax treaty. Whether that applies to you depends on your own circumstances, and this is exactly the kind of question to settle with a tax professional who handles international clients β we are not your accountant.
Many founders conflate the ITIN with the company's EIN, which is why we wrote ITIN vs EIN as a side-by-side. The short version: the EIN belongs to the company, the ITIN belongs to you.
Form your company first, then figure out the ITIN.
We handle your US formation and EIN so your company is real and operating β then point you to the right person for any personal tax ID you need.
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