ITIN vs EIN for Nigerians: Which Do You Need and When?

⚠️ No US-Nigeria Tax Treaty:

Nigeria has no comprehensive income tax treaty with the United States. All US-source income is subject to standard withholding rates. An ITIN ensures your payments are processed correctly.

💵 Why Dollar Income Is Critical for Nigerians:

With the naira losing significant value, every dollar earned from US platforms matters. An ITIN unlocks full access to US payment platforms and protects your earnings.

ITIN vs EIN: The Fundamental Difference

Nigerians doing business with the US frequently need to understand two distinct US tax identification numbers:

ITIN (Individual Taxpayer Identification Number) — for individuals (people). Format: 9XX-XX-XXXX. Used when you, personally, need to interact with the US tax system.
EIN (Employer Identification Number) — for business entities (LLCs, corporations, partnerships). Format: XX-XXXXXXX. Used when your US business entity interacts with the tax system, banks, or platforms.

Think of it this way: your US LLC has an EIN. You, as the owner, have an ITIN. Both are needed for full US compliance.

When Nigerian Individuals Need an ITIN

Freelancing as an individual for US clients (Upwork, Fiverr, direct contracts)
Receiving US-source income that requires a W-8BEN form
Filing Form 1040-NR to recover over-withheld US taxes
Owning a US LLC (you must identify yourself as the foreign owner)
Investing in US real estate (FIRPTA compliance)
Receiving US royalties, dividends, or interest requiring tax documentation

When Nigerian Businesses Need an EIN

Forming a US LLC — the LLC gets its own EIN
Opening a US business bank account (Mercury, Relay, Chase Business)
Registering with Stripe, Shopify Payments, or PayPal Business
Filing Form 5472 (the LLC files using its EIN)
Hiring US employees or contractors (requires EIN)
Establishing business credit in the US

Do I Need Both? (Usually Yes for LLC Owners)

If you own a US LLC as a Nigerian resident, you almost certainly need both:

Your LLC needs an EIN for banking, platforms, and business registration
You personally need an ITIN for Form 5472 (foreign owner identification) and potentially for Form 1040-NR

How to Get Each

EIN: Apply for free on the IRS website (irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online). For non-US owners, the process requires calling the IRS or mailing Form SS-4. Takes 1–4 weeks.

ITIN: Apply using Form W-7 through ITIN Plus (IRS CAA). Cost: $99. Processing: 8–14 weeks. Your original passport does not need to be mailed to the IRS — we certify it as a CAA.

Get Your ITIN — $99

$99

IRS CAA · Individual ITIN for Nigerian entrepreneurs · 8–14 weeks

Apply for ITIN

Frequently Asked Questions

Can I use my EIN instead of an ITIN?

No. EIN is for business entities; ITIN is for individuals. You cannot substitute one for the other on personal tax forms or identity verification.

Which do I need first — ITIN or EIN?

For US LLC owners, get the EIN first (faster, free). Start the ITIN application simultaneously since it takes longer. You can use the LLC's EIN to open bank accounts and access platforms while your ITIN processes.

Is an ITIN the same as a Social Security Number?

No. An ITIN is for non-US persons who cannot get an SSN. It serves as a tax identifier only — it does not grant work authorization, Social Security benefits, or immigration status.

How long does an EIN take to get for a Nigerian-owned LLC?

EIN applications from non-US owners typically take 1–4 weeks via fax (IRS Form SS-4) or 4–6 weeks via mail. Online EIN issuance requires a US SSN or ITIN.

Do I need both an ITIN and EIN to open a Mercury bank account?

Mercury requires your LLC's EIN to open a business bank account. Your personal ITIN is not required for Mercury, but you will need it for annual IRS compliance (Form 5472).