What Is the Difference Between EIN and Tax ID?

Is an EIN the same thing as a Tax ID?

An EIN is one specific type of Tax ID. The term "Tax ID" (or Tax Identification Number, abbreviated TIN) is the IRS's umbrella term for all numbers used to identify taxpayers. The IRS assigns three types of Tax IDs: EIN for business entities, SSN for individuals who are US citizens or authorized workers, and ITIN for individuals who need to file US taxes but cannot get an SSN.

When people refer to a "business Tax ID," they mean the EIN. When banks or payment processors ask for your LLC's "Tax ID," they want your EIN. The terms "EIN," "federal Tax ID," "Tax Identification Number," and "FEIN" (Federal Employer Identification Number) all refer to the same 9-digit number assigned to your business by the IRS.

The confusion arises because "Tax ID" is used loosely in everyday language. A US citizen might refer to their SSN as their "tax ID." A non-resident might hear "tax ID" and think they need an ITIN. A business owner might see "tax ID required" on a form and not know whether to enter their personal SSN or their business EIN. The answer depends on context: business forms request the EIN, personal tax returns request the SSN or ITIN.

For non-resident Wyoming LLC owners, the EIN is typically the only Tax ID number needed. The LLC uses the EIN for all business activities: banking, Stripe registration, Form 5472 filing, and any other business-related tax or financial transactions. A personal Tax ID (SSN or ITIN) is separate and only needed if you have a personal US tax filing obligation.

What is an EIN and what is it used for?

An EIN (Employer Identification Number) is a 9-digit number the IRS assigns to business entities for tax identification purposes. The EIN format is XX-XXXXXXX (two digits, a hyphen, then seven digits). The IRS issues EINs to LLCs, corporations, partnerships, trusts, estates, non-profits, and other entities that need to file tax returns or conduct business with the US tax system.

What the EIN Is Used For

• Business bank accounts: Banks require an EIN to open a business checking or savings account. Mercury, Relay, Chase, and every US bank asks for the EIN during business account applications.
• Payment processors: Stripe, PayPal, Square, and other payment processors require an EIN to verify business identity and issue 1099-K tax forms.
• Tax filings: The EIN appears on Form 5472, Form 1120, payroll tax returns, and any other federal tax document filed by the LLC.
• Hiring contractors: When your LLC pays contractors $600 or more, you issue Form 1099 using your EIN.
• Business credit: Some business credit reporting agencies track business credit under the EIN.
• Government filings: The Wyoming annual report, business licenses, and other government forms use the EIN.

EIN for Non-Resident LLC Owners

Non-residents obtain an EIN by faxing IRS Form SS-4 to (855) 641-6935 with "Foreign" written in the SSN field. No SSN or ITIN is required. Processing takes 4-8 weeks. The EIN is free (the IRS charges nothing). Once assigned, the EIN remains with the LLC permanently and does not expire. Read the complete guide on getting an EIN without SSN.

Common EIN Names

What is an SSN and who needs one?

An SSN (Social Security Number) is a 9-digit number the Social Security Administration issues to US citizens, permanent residents, and individuals authorized to work in the United States. The SSN format is XXX-XX-XXXX. The SSN was created in 1936 to track workers' earnings for Social Security retirement benefits.

The SSN has evolved into the primary personal identification number in the US. It is used for individual tax filing, credit reporting, employment verification, bank account opening, insurance, and government services. Non-residents who have never worked in the US on an authorized visa do not have an SSN and cannot obtain one.

SSN and Wyoming LLC Ownership

An SSN is not required to form a Wyoming LLC, get an EIN, or operate a business. Non-residents who have an SSN (from previous US employment) can use it on the IRS online EIN application for instant EIN issuance. Non-residents without an SSN use the fax method for EIN applications, which works equally well. The LLC's EIN handles all business identification needs. Read more at Do I need an SSN to form an LLC?

Who Has an SSN

• US citizens (by birth or naturalization)
• US permanent residents (green card holders)
• Individuals with US work visas (H-1B, L-1, O-1, E-2, TN)
• Refugees and asylees with work authorization

Who Does Not Have an SSN

• Non-residents without US work history
• Tourist and business visitors (B-1/B-2, ESTA)
• International entrepreneurs operating remotely
• Foreign students without work authorization

What is an ITIN and when is it required?

An ITIN (Individual Taxpayer Identification Number) is a 9-digit tax processing number the IRS issues to individuals who have a US tax filing obligation but are not eligible for an SSN. The ITIN format is 9XX-XX-XXXX, always starting with the number 9.

The IRS created the ITIN program in 1996 for non-resident aliens, resident aliens, and their dependents who need to file US tax returns. The ITIN is exclusively for individual tax filing. It does not authorize work, change immigration status, or establish Social Security eligibility.

When Non-Resident LLC Owners Need an ITIN

• The LLC earns US-source income that triggers a personal US tax return (Form 1040-NR)
• You need to claim tax treaty benefits by filing a US tax return
• You sold US real estate and need to file for FIRPTA refund
• You want to use the instant IRS online EIN application (convenience, not required)

When Non-Resident LLC Owners Do NOT Need an ITIN

• Online business with no US-source income (most common scenario)
• Only filing Form 5472 (uses the LLC's EIN, not owner's ITIN)
• Banking with Mercury or Relay (accept EIN + passport)
• Stripe registration (accepts EIN + passport)

Read the full guide on whether you need an ITIN for your LLC and the step-by-step guide on how to get an ITIN.

What is the difference between federal and state Tax ID?

A federal Tax ID (EIN) is issued by the IRS and used for all federal tax purposes. A state Tax ID is issued by a state tax or revenue agency for state-specific tax obligations. These are separate numbers from separate agencies, and most non-resident Wyoming LLC owners need only the federal EIN.

Federal EIN (Required for All LLCs)

Every Wyoming LLC needs a federal EIN from the IRS. The EIN is used for federal tax filings (Form 5472, Form 1120), business banking, payment processor registration, and hiring contractors. The federal EIN is the same number regardless of which state your LLC operates in.

Wyoming State Tax ID (Usually Not Required)

Wyoming has no state income tax, no corporate tax, and no franchise tax. Most Wyoming LLCs do not need a state tax ID number. A Wyoming state tax ID is only required in two specific situations:

• Employees in Wyoming: If your LLC hires employees who work in Wyoming, you need a Wyoming employer account number for unemployment insurance tax purposes.
• Sales tax: If your LLC sells taxable goods or certain services to Wyoming customers, you need a Wyoming sales tax license. Wyoming's sales tax rate is 4% with local additions up to 2%.

Most non-resident-owned Wyoming LLCs operate online businesses with no employees in Wyoming and no sales tax nexus, making a Wyoming state tax ID unnecessary.

Other State Tax IDs

If your Wyoming LLC has operations, employees, or sales tax obligations in other states, you may need tax IDs from those states. This is called "nexus" and varies by state. For example, if your LLC has employees in California, you need a California employer account number. If your LLC sells goods to Texas customers, you may need a Texas sales tax permit. Consult a tax professional about multi-state obligations.

Which tax ID numbers does my Wyoming LLC need?

Most non-resident Wyoming LLC owners need exactly one tax identification number: the federal EIN. This single number covers LLC formation completion, banking, payment processing, and annual tax compliance filings.

Scenario 1: Online Business, No US-Source Income (Most Common)

If you run an online business from outside the US with no US employees, no US real estate, and no income effectively connected with a US trade or business, you need only the federal EIN. Use the EIN for Mercury/Relay banking, Stripe, and Form 5472 filing. No SSN, ITIN, or state Tax ID is required.

Scenario 2: Online Business with US-Source Income

If your LLC earns income from services performed in the US, US rental property, or other US-source income, you need the federal EIN (for the LLC) and an ITIN (for your personal US tax return). You file Form 5472 using the EIN and Form 1040-NR using the ITIN.

Scenario 3: LLC with US Employees

If your LLC hires employees in the US, you need the federal EIN, a state employer account number (from the state where employees work), and potentially an ITIN for your personal tax return if the LLC creates personal US tax obligations. Payroll taxes are filed using the EIN.

Scenario 4: E-Commerce with Sales Tax Obligations

If your LLC sells physical goods to US customers and has sales tax nexus (economic or physical presence) in specific states, you need the federal EIN and sales tax permits from those states. Each state's sales tax permit has its own registration number. Wyoming itself has no economic nexus threshold for remote sellers, but other states do.

How do EIN, SSN, and ITIN compare side by side?

This comprehensive comparison table shows every significant difference between the three US tax identification numbers. Understanding these differences prevents confusion when completing forms, opening bank accounts, and filing taxes.

What are the most common Tax ID confusions?

Non-resident LLC owners frequently encounter confusing situations involving tax ID numbers. These clarifications address the most common misunderstandings.

Confusion 1: "My bank asked for a Tax ID"

When a bank asks for your LLC's Tax ID, they want the EIN. Enter the 9-digit EIN assigned by the IRS. If the form specifically asks for the owner's personal Tax ID (SSN or ITIN), and you are at a fintech bank that accepts non-residents, enter your passport information instead or follow their non-resident application process.

Confusion 2: "Stripe is asking for my Tax ID"

Stripe asks for two separate tax IDs during registration. The business Tax ID is your LLC's EIN. The representative's Tax ID is your personal SSN or ITIN. If you do not have an SSN or ITIN, Stripe accepts passport-based verification for non-residents.

Confusion 3: "Do I need a Tax ID to form my LLC?"

No tax ID of any kind is required to file Articles of Organization with the Wyoming Secretary of State. You need an EIN after formation (for banking and taxes), but the formation itself requires no tax identification number.

Confusion 4: "I received a state tax number I didn't apply for"

Some states automatically register businesses for state tax accounts when they detect a new EIN. If you receive a state tax ID you did not request, contact the state tax agency to understand the registration and determine whether you have filing obligations. Do not ignore state tax notices, as failure to file (even nil returns) can result in penalties.

Confusion 5: "My client asked for a W-9 with my Tax ID"

US clients may request Form W-9 (Request for Taxpayer Identification Number) from your LLC. As a foreign-owned LLC, you should provide Form W-8BEN-E instead of Form W-9. Form W-8BEN-E certifies your foreign status and includes your LLC's EIN. This prevents incorrect 24% backup withholding on payments to your LLC.

Confusion 6: "My EIN letter says Tax Identification Number"

The IRS EIN confirmation letter (CP 575) may use the term "Employer Identification Number" or "Tax Identification Number." Both refer to the same number. The 9-digit number on the letter is your EIN, which is your LLC's federal Tax ID.

How do I get each type of tax identification number?

Each tax identification number has a different application process, timeline, and set of requirements. This section provides the essential steps for obtaining each number relevant to non-resident LLC owners.

Getting an EIN (Form SS-4)

1. Form your Wyoming LLC and receive approved Articles of Organization
2. Download Form SS-4 from irs.gov
3. Complete all fields with LLC information; write "Foreign" in the SSN field on Line 7b
4. Fax to (855) 641-6935 with a cover sheet
5. Receive EIN confirmation letter (CP 575) in 4-8 weeks

Read the full guide on documents needed for EIN application.

Getting an ITIN (Form W-7)

1. Determine that you have a US tax filing obligation
2. Prepare your federal tax return (Form 1040-NR)
3. Complete Form W-7
4. Submit via mail (with original passport), CAA, or IRS TAC
5. Receive ITIN notice (CP 565) in 7-11 weeks

Read the full guide on how to get an ITIN for your LLC.

Getting an SSN (Form SS-5)

Non-residents cannot obtain an SSN unless they have US work authorization. If you have a work visa (H-1B, L-1, O-1, etc.) or permanent residency, apply at your local Social Security Administration office with Form SS-5, passport, I-94, and work authorization documents. Processing takes 2-4 weeks.

Where do I use each tax ID number?

Each tax ID number has specific contexts where it is required. Using the wrong number in the wrong context causes processing errors, delays, and potential compliance issues. This reference shows exactly which number to use for each common business activity.