Module 1 – Hero

US Tax ID Guide

EIN vs ITIN: The Ultimate Guide for Foreign Founders & Pakistani Entrepreneurs

Know Exactly Which US Tax ID You Need – In Under 2 Minutes

If you’re a Pakistani founder, you need an EIN to get paid. An ITIN? Probably not yet. Here’s why.

We work with Pakistani and global founders every day, so we already know what paperwork you’re sitting on, which forms the IRS actually cross-checks, and the order things need to happen in so you’re not stuck waiting around.

LLC Formation

→

EIN

→

Banking Live

→

ITIN (only if it turns out you need one)

Module 2 – Quick Answer

Quick Answer: EIN or ITIN First?

EIN first, almost every time. It’s what gets your LLC a US bank account, gets you through Stripe or PayPal approval, and keeps you square with the IRS on things like Form 5472. An ITIN works differently. It belongs to you as a person, not your business, and most founders won’t need one until they personally owe US tax or want to claim something under the tax treaty.

Quick version:

Opening a bank account or a payment processor account?

That’s EIN

Filing a personal US tax return, or claiming a treaty benefit?

That’s ITIN

Just running the LLC day to day?

EIN alone usually gets you there

Full comparison is right below this.

Module 3 – Comparison Table

EIN vs ITIN: Side-by-Side Comparison

Factor	EIN	ITIN
Purpose	Business tax ID for your LLC	Personal tax ID for individuals
Governing IRS Form	Form SS-4	Form W-7
Tied to	The business entity	The individual person
SSN required to apply?	No	No
Typical processing time	A few business days to about 4 weeks, depending on method	7-11 weeks (up to 14 weeks in peak season, Jan-Apr)
Primary use case	Banking, payment processors, IRS business filings (Form 5472)	Personal tax filing, US-Pakistan tax treaty claims
Required to form your LLC?	Not on paper, but you can’t really operate without one	No
Cost to obtain	Free to self-file, or a service fee if you use assistance	Free to self-file, or a CAA service fee if assisted

Not sure which one’s yours?

Module 4 – Understanding the Core Differences

Understanding the Core Differences

Business Tax ID

EIN: your business’s ID. You get one by filing Form SS-4, and it belongs to your LLC, not to you personally. With it, you can open a US business bank account, get onboarded on Stripe or PayPal, and handle what the IRS expects from foreign-owned LLCs, including Form 5472. Without it, your US business doesn’t really move forward.

Personal Tax ID

ITIN: your personal tax number. This one comes through Form W-7 and it belongs to you, not the company. You’d need it if you personally owe tax on your share of the LLC’s profits, or if you’re claiming something under the US-Pakistan tax treaty. A lot of founders run their LLC for years on the EIN alone and never touch this form.

Module 5 – Where Most Founders Get Stuck

Where Most Founders Get Stuck

A handful of mix-ups keep showing up. The biggest one: people assume an ITIN can stand in for an EIN. It can’t. They’re built for completely different jobs.

There’s also confusion about which document actually gets a bank account open. Founders sometimes wait on the wrong one while their LLC just sits there doing nothing.

Mailing an original passport to the IRS makes people nervous, and honestly, that’s fair. Nobody wants their only travel document floating around in the mail for weeks. And the ITIN timeline catches almost everyone off guard. Seven to eleven weeks feels rough when you were expecting something closer to EIN speed.

Module 6 – Eligibility & What You’ll Need

Eligibility & What You’ll Need

Pakistani & NRP Founders

For an EIN

For an EIN, you’ll need your LLC’s formation paperwork and a completed Form SS-4. No SSN anywhere in the process. The application goes in under the LLC’s responsible party, which for most Pakistani-owned LLCs is just the founder, listed as a foreign individual.

One thing that trips people up before they’ve even started: the IRS online EIN tool won’t work without an SSN or ITIN. You fill everything in, hit submit, and get rejected at the very last step. That’s not a glitch, that’s just how it’s built. Non-SSN holders apply by fax, mail, or phone instead. Knowing this ahead of time saves you an hour of banging your head against the online form.

For an ITIN

For an ITIN, you’ll need Form W-7, a valid passport, and a real reason tied to an actual tax obligation, not just a “might need it someday” feeling. The IRS wants that reason spelled out clearly.

Most Pakistani founders already have the one document that covers nearly all of this: a valid passport. It works as ID for the EIN process when asked, and it’s your main proof of identity on the ITIN side too.

Worth Knowing

Worth knowing before you touch the ITIN process at all: a Certifying Acceptance Agent, or CAA, can verify your passport without you having to mail the original to the IRS. Given how many people worry about losing their passport in transit, this route is usually the smarter call.

Before you grab the checklist, here’s what’s in it: your passport, your LLC formation documents, and a properly filled-out Form SS-4. Those three cover almost every founder’s situation.

Download the Pakistani Founder Document Checklist

Module 7 – Practical Use Cases

Practical Use Cases: Banking, Payments, and Taxes

Banking

This is where the EIN does most of the work. Mercury, Relay, and most banks that let foreign-owned LLCs open accounts remotely will ask for the EIN before the application even starts. Take a Pakistani founder launching a Shopify store through a Wyoming LLC: the bank wants the EIN, the passport, and the formation docs. No SSN, no ITIN, none of that. EIN plus passport is basically the standard path to a US account when you don’t have a Social Security Number.

Payments

Stripe and PayPal work the same way. They’re checking your business, not you personally, so the EIN is what gets verified during onboarding. A founder billing international clients through Stripe usually runs into this within the first week or two of operating, and the EIN is what clears the path.

Taxes

This is where the ITIN shows up, but only for some founders. Once your LLC starts turning a real profit and you personally owe US tax on your share, or you want a lower withholding rate under the US-Pakistan treaty, that’s your cue. It’s a personal obligation, not a business one, and it only kicks in once there’s an actual filing need behind it.

Most people reading this page will solve banking and payments with the EIN and stop there.

Module 8 – Application Timelines and What to Expect

Application Timelines and What to Expect

The gap between these two is bigger than most people expect walking in. Plan around it before you start, not after you’re already sitting there waiting.

EIN

Days to ~4 Weeks

An EIN, filed correctly, usually comes back within a few business days by fax, or around four weeks by mail. International applicants can also apply by phone. Most delays trace back to a mistake somewhere on the SS-4 form or a fuzzy responsible party section.

ITIN

7-11 Weeks (up to 14)

An ITIN runs on its own clock entirely. Standard processing takes 7 to 11 weeks, and that can stretch to 14 weeks during peak season, January through April. Applying from outside the US adds extra time too, since mail has to travel both ways. If you already know an ITIN is coming eventually, applying outside peak season will save you real weeks.

The Order That Actually Works

Form Your LLC → Get the EIN → Get Banking Running → Start ITIN (if your situation calls for it)

See expedited EIN options

Module 9 – Who Should Get an EIN First

Who Should Get an EIN First

If any of this sounds like you, the EIN’s your next move:

You need a US business bank account

You’re onboarding to Stripe, PayPal, or something along those lines

Your LLC is a foreign-owned disregarded entity with a Form 5472 filing obligation

You don’t have a personal US tax filing requirement right now

If you’re on this page, there’s a good chance this is exactly you.

Module 10 – Who Should Apply for an ITIN (Or Both)

Who Should Apply for an ITIN (Or Both)

Smaller group here, but the path is just as legitimate:

You’ve got a personal US tax filing obligation, often because your LLC is profitable and passing income through to you

You want to claim a benefit under the US-Pakistan tax treaty

You already have your EIN sorted and now a personal filing requirement has popped up

Needing an ITIN doesn’t mean you got the EIN step wrong, or wasted any time. It just means your situation has moved into a new stage.

Module 11 – Common Mistakes Founders Make When Choosing

Common Mistakes Founders Make When Choosing

Same patterns, over and over:

Thinking the ITIN replaces the EIN. It doesn’t, not even close. Different jobs entirely, and your business operations need the EIN regardless of what your personal tax situation looks like.

Underestimating how long the ITIN takes. Founders who don’t plan around that 7 to 11 week window sometimes get blindsided by deadlines they never saw coming.

Mailing the original passport instead of using a CAA. Totally avoidable. A CAA verifies your documents without you giving up your passport for weeks on end.

Applying for an ITIN before it’s actually needed. This just slows your own paperwork down, and it can drag out your EIN and banking timeline for no real reason at all.

Module 12 – Final Recommendation

Final Recommendation

For nearly every Pakistani or NRP founder, the order’s the same: EIN first. It unlocks banking, gets you through payment processors, and keeps your LLC compliant from day one. The ITIN comes later, only if and when a personal filing obligation or treaty claim actually applies to you.

That said, this isn’t one-size-fits-all. Some founders end up needing both within their first year. Others run the business for years on the EIN alone and never look back. The one rule that actually matters: don’t apply for either one before you need it.

The one rule that actually matters: don’t apply for either one before you need it.

Module 13 – FAQs

FAQs for Pakistani & Global Founders

Quick answers to the questions we hear most

Can a Pakistani founder get an EIN without an SSN?

Yes, no question. You apply with Form SS-4, and the process for foreign applicants doesn’t ask for an SSN anywhere along the way.

Do I need an ITIN to open a US bank account from Pakistan?

Usually not. Most banks working with foreign-owned LLCs are fine with just an EIN and a passport.

If my LLC becomes profitable, when do I need to apply for an ITIN?

Once you’ve got a personal US tax filing obligation, or you want to claim something under the US-Pakistan tax treaty.

How long does an EIN take compared to an ITIN?

An EIN’s usually a few business days to about four weeks. An ITIN takes longer, 7 to 11 weeks standard, and up to 14 during peak season.

Is a CAA required for an ITIN application?

Not required, but worth it. A CAA verifies your identity documents so your original passport never has to leave your hands and go to the IRS.

Still unsure? Ask a US-Pakistan Tax Specialist.

Ask a US-Pakistan Tax Specialist

Module 14 – Get Started with Compliance Services

Get Started with Compliance Services

Most founders need an EIN first, full stop. Plenty never end up needing an ITIN at all. Whichever path fits you, we can get you there without the back-and-forth.