ITIN or EIN which one do I need for LLC?
Confusion on the TIN number clarified!
We often come across queries from our clients with confusion about whether they need to apply for ITIN or EIN because the US agents or the US banks, amazon, to open a stripe account, you tuber, and Facebook business income receivers need an ITIN number. If the ITIN is not provided to USA-based distributors, your income would be subject to a 30% flat tax on your gross income.
TIN stands for Tax Identification Number. There are 2 types of TIN one for the company and one for the individual owner of the business.
EIN – Employer Identification Number
EIN is more of an identification number for your US LLC or USA Inc or Foreign Corporation.
Both US and non-US citizens can apply for EIN, However, you can apply for EIN only for USA LLC or Foreign based Ltd, Corporation to apply for the EIN.
ITIN – Individual Identification Number
ITIN is similar to SSN in terms of the number of digits and only Foreign National (non us citizen is eligible to apply for ITIN). Even though the ITIN is similar to EIN, the ITIN number always starts with the digit 9.
How long the EIN and ITIN are valid?
EIN is issued only once and it’s valid throughout the company and is ceased or inactive
ITIN is valid only for 4 to 5 years provided the number is kept active on the US tax return filings or IRS forms reporting like Form 1099, Form 1042S, and Form W8 BEN. If ITIN is not kept active the holder of the ITIN needs to renew the ITIN after 5 years sometimes even within 3 years if the number is inactive.
If you are looking for ITIN, EIN, or US tax return expert service, We can help!
Our team specializes in international expatriate U.S. personal tax return services. If you need assistance with ITIN Renewal/US 1040 filing for refund claim/FATCA Compliance work/FBAR FINCEN114 Filing, ITIN/ Form W7 Application/E.I.N./Form W8BENE or Certified Acceptance Agents [C.A.A.] services/1040NR U.S. tax filing for refund claim of excess 1042S / 8288A/ 8805/ W2/ 1099. We are happy to assist our clients in a timely, efficient, and cost-effective way.
