Two IRS numbers are often confused: the EIN identifies the LLC, and the ITIN identifies an individual who cannot get an SSN. A Colombian owner with no U.S. residence or office cannot use the online EIN application, but can apply by phone, fax or mail with Form SS-4, and does not need an ITIN merely for owning an LLC or for requesting the EIN. Ligal explains the official IRS rules (the SS-4 and W-7 instructions), separates what the IRS requires from what banks and platforms ask for, and handles the Colombian side end to end with ex-DIAN lawyers and CPAs: reporting the LLC to DIAN, foreign assets, the ECE regime and registration with the Banco de la República.
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The EIN (Employer Identification Number) is a 9-digit number the IRS assigns to entities for their tax filings and reporting. For an LLC it identifies the company, not its owner, and it is what banks usually ask for as proof that the LLC exists for the IRS (normally the CP 575 notice or Letter 147C). The ITIN (Individual Taxpayer Identification Number) is something else: it identifies an individual for U.S. federal tax purposes when that person is not eligible for a Social Security number (SSN). It does not entitle the holder to Social Security benefits, does not authorize work and does not create any immigration status.
According to the IRS (Topic 857), an ITIN is not issued solely for opening bank or investment accounts, e-commerce or starting a business; it is issued when there is a federal tax purpose, such as a U.S. return. That is why a Colombian nonresident owner of a single-member LLC does not need an ITIN merely for being the owner or for requesting the EIN. What the LLC usually does need is the EIN, among other reasons because a foreign-owned U.S. disregarded entity needs one to file Form 5472 when it had reportable related-party transactions (penalty of USD 25,000, plus USD 25,000 for each 30-day period of continuation after a 90-day IRS notice, per the Instructions rev. 12/2024). Holding either number does not replace reporting the LLC to DIAN.
Key points on EIN and ITIN
We explain the official IRS route in plain language and connect it to the Colombian side, which is where the risk usually sits for a tax resident.
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We review your situation (tax residence, LLC structure, clients, banks) and explain which number serves which purpose, and whether there is a federal tax purpose that justifies an ITIN or whether the LLC's EIN is enough.
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We explain the IRS channels for international applicants (phone, fax or mail with Form SS-4), what information the form asks for and how lines 7a and 7b are completed when the responsible individual has no SSN or ITIN. You must check the details against the current IRS instructions.
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We analyze with you whether there is a U.S. return, a refund, a treaty benefit or another reason recognized by the IRS, and explain how Form W-7 works and the official channels (mail, IRS Taxpayer Assistance Centers by appointment and IRS-authorized Acceptance Agents).
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We distinguish what is an IRS obligation from what is a commercial requirement of a bank, a payment gateway or a marketplace, and tell you which document proves EIN assignment (CP 575 or Letter 147C) so you do not rely on a submitted SS-4.
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Holding an EIN or ITIN does not replace your obligations in Colombia. We structure the income tax return with the LLC, the foreign-assets report, the analysis of the ECE regime and the review of the place of effective management (art. 12-1 E.T.).
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We review the registration of the investment with the Banco de la República under the current exchange rules and build the document file (formation, EIN, money movements) so your LLC can withstand an audit.
An LLC with a Colombian owner crosses IRS rules, Colombian tax law, exchange regulations and accounting. Our team brings those disciplines together on the Colombian side.
Director · Tax attorney · Ex-DIAN
Attorney with experience inside DIAN. He knows first-hand how the income and foreign assets of tax residents with U.S. companies are reviewed.
Tax attorneys
Specialists in reporting LLCs to DIAN, the ECE regime, place of effective management, foreign assets and registration of foreign investment with the Banco de la República.
Certified public accountants and tax auditors
Experts in reconciling the LLC's financial statements with the Colombian return, accounting support for income and withdrawals, and document control of money movements.
It depends on whether there is a federal tax purpose. We assess your case under the official IRS rules and remind you to confirm your current federal and state duties against the IRS instructions.
The IRS decides on assigning the numbers and its response times are not in our hands. We only cite what the official instructions say and do not guarantee dates.
Obtaining an EIN or ITIN does not replace reporting the LLC to DIAN or reporting foreign assets. We do not advise structures that omit foreign assets or income.
At Ligal we combine the auditor's inside view with the reality of the Colombian entrepreneur who operates in dollars. We explain the official IRS rules on EIN and ITIN and handle the Colombian side: DIAN, ECE, foreign assets, exchange registration and documentation.
The information is general and does not replace analysis of your specific case. IRS requirements change with each revision of forms and instructions: confirm them at irs.gov before filing any application.
Direct contact with leadership
Juan Santiago Rodríguez Prieto
Director · Tax Attorney · Ex-DIAN
We begin with a confidential review of your tax situation, the LLC structure and what your bank or platforms are asking for, to define the roadmap.
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First response within one business dayWe review which number is needed and why (the LLC's EIN, an ITIN only if there is a federal tax purpose) and what banks or platforms require.
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Depending on case complexityWe explain the official IRS channel that applies to your case and organize the information and documents required, so you can check them against the current instructions.
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Continuous supportWe align the LLC with the income tax return, foreign assets, the ECE regime and registration with the Banco de la República, and support you before DIAN.
Frequently asked questions
The EIN (Employer Identification Number) is a 9-digit number the IRS assigns to entities for their tax filings and reporting; for an LLC it identifies the company, not its owner. The ITIN (Individual Taxpayer Identification Number) identifies an individual for U.S. federal tax purposes when that person cannot get an SSN, and is requested with Form W-7. An ITIN does not entitle the holder to Social Security benefits and does not create work authorization or immigration status. They are numbers with different functions: having one does not mean you need the other. This information is general; check it against the current IRS instructions.
The IRS online application requires the applicant to have a legal residence, principal place of business or principal office in the U.S. or its territories, and the responsible individual to have an SSN, EIN or ITIN; if that is not met, it cannot be used. According to the IRS, international applicants may call 267-941-1099 (not a toll-free number; Monday to Friday, 6:00 a.m. to 11:00 p.m. Eastern) or send Form SS-4 by fax (855-215-1627 from within the U.S.; 304-707-9471 from outside) or by mail to Internal Revenue Service, Attn: EIN International Operation, Cincinnati, OH 45999. The instructions recommend completing a mail application at least 4 to 5 weeks before the EIN is needed. Check the current details at irs.gov.
Not automatically. The IRS states that an ITIN is not issued solely for opening bank or investment accounts, e-commerce or starting a business. A nonresident owner of a single-member LLC does not need an ITIN merely for being the owner or for requesting the LLC's EIN: on Form SS-4, if the responsible individual has no SSN or ITIN and cannot obtain one, line 7b is completed with “foreign” or N/A. An ITIN becomes necessary when there is a demonstrable federal tax purpose, such as filing a U.S. return. Whether that is your case depends on the facts; confirm it against the IRS instructions.
The IRS requires it from someone who is not eligible for an SSN and has a federal tax purpose. Official examples include a nonresident who must file a U.S. return or files one to claim a refund, a resident alien who files a return, someone claiming a treaty benefit through a withholding certificate, and a party to a real-property transaction subject to FIRPTA. Form W-7 generally goes with the federal return, unless one of the exceptions in the instructions applies. It can be processed by mail, at IRS Taxpayer Assistance Centers (by appointment) or through IRS-authorized Acceptance Agents. No rule requires an ITIN from every LLC owner.
Lines 7a and 7b identify the responsible individual, who is a natural person, and their SSN, ITIN or EIN. Under the SS-4 instructions (rev. 12/2025), if that person does not have and is not eligible to obtain an SSN or ITIN, line 7b is completed with “foreign” or N/A. That allows the EIN to be processed without a prior ITIN. When the EIN is requested to file Form 5472 as a foreign-owned U.S. disregarded entity, the instructions provide a specific entry on line 9a. Before sending anything, check the current version of the form and its instructions.
Not necessarily. Banks, payment gateways and marketplaces may ask for the LLC's EIN and other documents as part of their know-your-customer (KYC) process and internal policies; that is a commercial requirement, not an obligation imposed by the IRS. Moreover, such a request alone is not a reason for the IRS to issue an ITIN, because the IRS states it does not issue one solely to open accounts, run e-commerce or start a business. Requirements vary by institution and product; ask each one which document it accepts and check its current terms.
In practice, no. Sending Form SS-4 is only the application; it does not by itself prove the IRS assigned the number. What banks usually ask for is the official assignment document: the CP 575 notice or, if it was lost or a confirmation is needed, Letter 147C (EIN Previously Assigned), which can be requested from the IRS business tax line. Until assignment is confirmed, the number should not be used with banks, platforms or authorities as if it already existed. The IRS does not guarantee response times; the instructions only recommend allowing 4 to 5 weeks for mail applications. Keep copies of everything you send.
A foreign-owned single-member LLC (a disregarded entity) must file Form 5472 with a pro forma Form 1120 if it had reportable related-party transactions, and Form SS-4 states that it needs an EIN to do so. The penalty for failing to file is USD 25,000, plus USD 25,000 for each 30 days of continuation after a 90-day IRS notice, with no cap on the continuation penalty, per the Instructions for Form 5472 (rev. 12/2024). Not every LLC has reportable transactions, and this is a different issue from whether the owner needs an ITIN. Confirm your case against the official instructions.
No. IRS numbers identify the LLC or its owner in the U.S.; they do not replace Colombian obligations. If you are a Colombian tax resident, you are taxed in Colombia on your income and your assets in Colombia and abroad (art. 9 E.T.), and the LLC may require reporting income, declaring foreign assets (art. 607 E.T.), assessing the ECE regime and analyzing whether the place of effective management is in Colombia (art. 12-1 E.T.), in addition to registering the investment with the Banco de la República. Each topic depends on the facts; this site has specific pages for each one.
We analyze which number your LLC needs, what your bank or platforms ask for and how it fits with your obligations before DIAN, in strict confidence.