Understanding EIN and ITIN
Where EIN refers to Employer Identification Number, ITIN stands for Individual Taxpayer Identification Number. Both the numbers are used for the filing of federal taxes or their extensions.
Issued by the IRS, EIN and ITIN are unique identifiers which provide the taxpayers with an identity reflected in the federal departments. EIN is used for business purposes by both US and non-US residents to keep their personal identities separated from professionals. On the other hand, ITIN is for individuals who have taxable income in the US and are mostly non-US residents.
Therefore, in order to start a business or to start your career in the USA, you must have an EIN or an ITIN, specifically when you are a non-resident. Let us explain the importance of EIN and ITIN separately for easy understanding.